This study assesses the determinants of households' adoption of rainwater harvestingrnponds, and its impact on agricultural intensification and yield in Alaba Woredarnsouthern Ethiopia. Results are based on data collected from a survey of 152rnhouseholds and 1036 plots operated by the households. Households were stratified intornthose with rain water harvesting ponds and those without from which equal number ofrnsample households ware drawn. Analysis of descriptive information and econometricrnmethods are used. analysis of qualitative information supplemented the econometricrnresults.rnThe finding in the cropping pattern shows that, farm households have started to growrnnew crops (vegetables and perennial crops) as a result of water availability from thernwater harvesting ponds, Results of Pro bit analysis on the determinants of adoption ofrnrainwater harvesting ponds shows that household size, education status of householdrnhead, ownership of livestock (cattle, oxen and pack animals), homestead plots and typernof pond explained adoption statistically significantly. Results of analysis of qualitativerninformation, consistent, with the Probit model results, also showed that laborrnrequirement, economic problem to use simpler water lifting and watering equipments,rninability to easily understand the benefit of the technology and problems related withrnthe structure of the RWH technology adopted were some of tire major problems facedrnby households, and have a negative impact on the technology adoption rate.rnThe Ordinary Least Square estimation of tire determinants of the value of croprnproduction shows that adoption of RWH has a positive and statistically significantrneffect on value of crop production, after controlling for input use and other factors.rnThis shows that RWH ponds have direct and significant impact on value of croprnproduction. We also find that households with RWH technology use more labor andrnseed but less oxen power compared with those households who have not adopted therntechnology. Moreover, labor and seed inputs have positively significant impact on yieldrnwhile the effect of oxen power is insignificant. These res lilts show that in addition to itsrndirect impact, RWH has significant indirect impact all value of crop productionrnthrough its effect on intensity of input use.rnLabor requirements and cost considerations appear to be important factors thatrninfluence household's adoption of RWH technology. This implies that research andrndevelopment interventions need to take account of the labor and cost demands of therntechnology. The effectiveness of the technology adoption is mainly constrained byrnproblems related to water lifting and watering equipments, and accidents occurringrndue to absence of roof cover and fence to the ponds. This implies that support will bernneeded to provide affordable but improved water lifting and watering equipments, andrngive training to farm households on construction and use of roof covers and fences torntire ponds. As households shift to high value but perishable commodities due to thernRWH, emphasis needs to be given to marketing extension, especially in facilitatingrnmarkets and market linkages to farmers.rnFuture intervention to promote RWH technologies need to provide due attention tornquality, rather than focusing on the number of adopters. Households appear to neglectrnthe community ponds since they focus on using cleaner water obtained from householdrnponds and other sources of clean water. In this process the community ponds arernbecoming a cause of health problems. Thus, it is important that appropriate attentionrnbe given to the community ponds as well.