In this paper, we present the results of the analysis of aerosol/cloud backscattered signals recorded with a state-of-the-art LIDAR at a tropical urban station, Pune in India. The study reveals that a major portion of cloud condensation nuclei (CCN) within the cloud cells is contributed by the sub-cloud region. Cloud/rain scavenging reduces the CCN concentration within the saturated zone. Cloud dissipation followed by drizzle is explained based on increased local atmospheric stability. Delay in the production of fresh CCN and associated cloud formation is observed after the wet removal – a phenomenon called “Recharging of the Atmosphere”. A substantial effect of CCNs on the growth and dissipation of clouds and the subsequent changes in the local hydrological cycle are elucidated by some novel approach.