Vulnerability analyses for Ethiopia suggest that environmental changes over the coming decades present a serious threat to economic and social sectors. Water is a specifically fragile resource with the frequency and intensity of drought projected to increase. Addressing long-term climate change is thus required to reduce the impacts on livelihoods and bolster major economic sectors such as agriculture, which is the mainstay of the country. In response, and as part of a set of three other Coping with Drought and Climate Change projects in Kenya, Mozambique and Zimbabwe, this project is working to improve the livelihood strategies and resilience of farmers. Through enhanced farming practices and improvement of community-based natural resource management, rural communities are adapting to water scarcity and drought. This project is also establishing the use of early warning systems to bolster resilience in the agricultural sector.