This thesis presents the results of an assessment in watershed management intervention related tornthe impact brought on improvement of land degradation and livelihood of the conmlwlity in MaiAnbesarnand Hadegti watersheds. The objectives of the study are: assess the impact of the project onrnconservation of natural resource and livelihood of the community; assess the institutionalrnarrangement and its contribution to the project, assess community participation in the projectrnprocess and suggest possible recommendations on the conclusion.rnFor this study, survey has been conducted in two watersheds, namely Kai-Anbesa and Hadegti. Listrnof C0l11111Wlities from the two watersheds has been prepared and systematic sampling techniquernused to determine respondents in each watersheds. The study has covered a sample of 100rnrespondent out of the total 2136 (5% Of the population) population of both watersheds. Bothrnprimary and secondary data has been collected using different data collection teclmiques.rnThe study showed that despite some biophysical achievements, the watershed management projectrnin the study area has failed to impact on the livelihood of the community as desired. This was as arnresult of two important problems. 1) Institutions were not well established, empowered. More everrnthey did not have the peoples acceptance rather they were machinery of the governments interest. 2)rnCOllmmnities participation from problem identification to benefit sharing was not established