This study is an integration and a synthesis of the preliminary papers previously presented for discussion during the workshops concerning the Micro Component of the ESIA-WID Project. After briefly discussing the nature and features of a local water development program, a theoretical perspective on the socio-economic benefits is put into place. An analytical framework is then used to establish specific progress indicators to measure the impact of the project across different welfare concerns. While cost-benefit analysis is highly popular as an evaluation tool, the study has utilized cost-effective approach since the required specificity and intensity of data collection/generation could not be realized within the nature and constraints of the study.