The research attempts to deal with problems associated with institutional arrangements andrncapacities at different administrative hierarchy and sector development bureaus in Zone 4 AwrarnWoreda in Afar National Regional State, in initiation, planning, design, construction, operationrnand maintenance of community based small-scale irrigation project.rnTh is study aimed at investigating the nature, mechanism and prospects of community based localrneconomic development with a focus on small-scale irrigation project in selected case study arearnin pastoral Afar. The specific objectives of the study were: To identifY and explain the role of therndifferent actors in small-sale irrigation project, to determine what supporting servicesrnarrangement were put in place to help the pastoratist engage in irrigated farming activities ,torndetermine how clan based land tenure and resources use systems do affect irrigation farmingrnpractices and scheme development and to asses the contribution of the irrigation scheme tornimproving the food security of the households in the study area.rnThe study pursued qualitative and quantitative approach to achieve the study's objectives.rnDifferent but complementary data collection techniques such as document review, grouprndiscussions key informants interview and sample survey were used for data collection. The Datarnwere analyzed using SPSS by entering pre- and post-coded data from the household surveyrnquestionnaires. These data were analyzed using tabulation and cross-tabulation with frequencyrnand percentage value.rnThe study reveals that encouraging efforts were being made by the NGO and government atrnregional and Woreda level to enhance participatory approach in the course of the development ofrnthe study scheme. Nevertheless, the participatory approach pursued was not based onrninstitutional framework for the initiation, planning, implementation and operation andrnmanagement activities of small-scale irrigation activities. The study reveals that the localrncommunities were not adequately involved in decision making at the different stage of the projectrnmanagement cycles. The prevailing clan based land tenure and resources use systems mayrnnegatively affected the irrigation activities and become threat for continuity of irrigation farmingrnactivities unless corrective measures are taken with the active participation of members of therndifferent sub clans in the study area. Despite the minimal involvement of the local community, itrnis revealed that the project has contributedfor improving the food security of the irrigators.