A growing consensus on the demographic impact of development projects began to emerge in therninternational community that economic growth alone was not enough and that the demographic and socialrnobjectives of development should be addressed. The fertility impact of development projects, which hasrnacquired increased importance since the last two and a half decades, has now gained the attention of policyrnmakers and program initiators particularly in developing cDuntries.rnThis thesis is an empirical study on some socio-demographic impact of development project, namely Ala!rnHospital's Women's Groups in two comparative communities (community receiving project and the one notrnreceiving it) in rural Ethiopia. Twenty one women's groups in beneficiary community and four PeasantrnAssociations in non-beneficiary community in Cheha wereda of Gurage zone constitute the study materialrnwith representative ever-married sample women of 348 and 400 respectively.rnVarious socia-economic and demographic situation of the project and non-project communities arernelaborated based on empirical data. Religion, education, self perceived economic well-being, child lossrnexperience. a woman's decision -making autonomy, age, age at first marriage, current and life-time fertility,rnmarital status and marriage type, maternal and child health care, water, sanitation and hygiene are included.rnBesides, the duration of staying of partiCipation in women's groups, knowledge and use of natural andrnmodern family planning are treated in detail.rnThe objectives of the study include to examine, analyze and compare: the knowledge and practice of familyrnplanning; the fertility of ever-married women; the variation, if any, in environmental sanitation, maternal andrnchild health care in the project and non-project communities using some of the health indicator variables. Itrnwas also meant to determine the relative importance of each of the explanatory variables on life time fertility.rnFinally, on the basis of the findings to identify issues relevant for program intervention, policy formulation andrnfurther research. Towards these end bi-variate, Multiple Classification Analysis (MCA) and Ordinary LeastrnSquare (OLS) multiple regression techniques were employed.rnThe results of bi-variate analysis show that in spite of the socio-cultural and demographic Similarities, thernbeneficiary ever-married women have much higher levels of maternal and child health care, access tornpotable water, sanitation and hygiene. They also have more knowledge of family planning, lower estimatedrntotal fertility rate (TFR), and attitude towards small family size; higher unmet need for contraception, higherrndecision-making autonomy and perceived economic well-being.rnThe results of OLS regression analysis revealed that age, age at first marriage, two and at least three childrenrnloss through death, above grade seven education, perceived economic well-being, current use of modemrncontraception, decision-making autonomy, and five years and above participation in women's groups werernfound to have significant relationship with fertility in the project group. About 41 % of the variation in fertilityrn(CEB) was significantly explained by the above-stated variables. For the non-project ever-married women,rnage, age at first marriage, two and at least three children loss through death, grade seven and aboverneducation and current use of modern contraception were Significantly related to fertility. About 62% of thernvariation in fertility was significantly explained by these stated predictors.rnBased on major findings of the study, the thesis indicates major areas for further research, policy and programrnintervention. These include more combined quantitative and qualitative research on the effects of developmentrnprojects in other parts of Ethiopia including the Atat Hospital's Programs; and more comprehensive andrneffective family planning, reproductive and child health program. These can lead to the reduction in fertility,rnmaternal and child mortality, upgrading the status of women through decision making autonomy which in tumrncontribute to attaining the fertility and mortality objectives of the National Population and Women Policy ofrnEthiopia.