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Synopsis The institution of Watan occupied a vital and dominant position in medieval Maharashtra. It not only defined the relationship between the state and rural society it also embraced almost every class or group in Maratha rural society. The present study of the state and village community vis-a-vis the Watan institution mainly arose in the context of the increasing attention paid by historians to the need for a detailed and critical evaluation of rural society in medieval Maharashtra. The different categories of watandars, the nature of their rights in land and their role in society gave rise to complex social and economic relations. An attempt has been made to analyse the nature of relationships that existed between the two categories of watandars in the light of the rights, perquisites and privileges held by each category. Since the state was the guardian of all watan rights, the role of the state in its relationship with the two categories of watandars, also assumes importance.