They were primarily revenue collectors; and when (magisterial and judicial) responsibilities were added to their function they became deshmukhs, chiefs of the parganas. Gradually, each of these assignments tended to become a 'watan' i e, hereditary lease. Despite changes in the political authority at the top, this institution survived, since no ruler from above wished to risk disturbing local administration, headed by village officials. This institution was cleeply entrenched in the region with local support and structured in organised 'community' life. The deshmukhs presided over meetings of the pargana community known as ^{(sabha' )} which decided and confirmed claims over inheritance, purchase and transfer of watans. The deshmukhs by virtue of local sanction and consensus could not be easily displaced from above.

These were, in the 1940s, the layer of the very large landowners in Telangana. They owned from 2,000-3,000 acres at the lower end to at the upper as in the case of the Janareddy family of Nalgonda District. Their origin can be traced to the administrative reforms of Salar Jung I, prime minister of Hyderabad state in the 1860s and 1870s. The reforms abandoned the previous practice, of auctioning off the revenue collection in the government-administered areas to farmers, in favour of direct revenue collection by the State. The 'revenue farmers' were given land in compensation. Most of them availed of the opportunity to seize as much of the best land as they could. They also received a pension. The deshmukhs were thus given a dominant position in the rural economy which they proceeded resolutely to strengthen during the succeeding decades.

The Desmukhs were, no doubt, originally appointed by Government, and they possessed all the above advantages, on the tenure of collecting and being responsible for the revenue, for superintending the cultivation and police of their districts, and carrying into effect all orders of Government. They were, in fact, to a district what a Patil is to a village; in short, were charged with its whole Government.