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The objective of this study is to present the approach to assess needs of land consolidation to prepare rural areas for proper water resource management. The study presented links of water management with land consolidation, which is a new approach in rural development planning in Central Europe. The results of this research are presented in the form of a needs assessment matrix for water retention. The matrix includes the main groups of parameters that are related to water resource management systems and rural development planning, which are classified into three groups: (1) water resources and retention, (2) technical systems and water management measures, and (3) information about land space distribution in rural areas. A verification of the proposed matrix was carried out for two sites that differ in terms of factors influencing the retention size; one is located in southern Poland in Lower Silesia—in the village of Mokrzeszów—and the other is located in Strzelce Wielkie—a village located in Lesser Poland. Both sites were evaluated using different needs assessment methods in terms of retention. The main factors influencing a reduced retention potential are related to the insufficient retention capacity of river channels and valleys and the inadequate maintenance of melioration systems. In Strzelce Wielkie, the land consolidation favours longer catchment response on rainfall, which is an advantage to mitigating drought and flood problems. The developed matrix can be applied for an assessment of the retention potential of rural areas based on the relatively accessible data. The method is universal and can be used in different regions. The approach presents practical tools dedicated to authorities to deciding on land consolidation in regards to water resources management; it aims at resolving agricultural land use conflicts and sustainably using space in order to manage water domains.