This report discusses the World Bankaided Women's Development Initiatives Project (WDIP),under implementation in Ethiopia. The study assesses theempowerment status of Ethiopian women in both rural andurban areas, and evaluates the impact of participation inWDIP on women's empowerment. Empowerment status andimpact are measured against indicators in the economic,political, social, and psychological domains, on theassumption that WDIP, a project designed to expand economicopportunities, strengthen self-reliance, and buildawareness, will affect outcomes in all these spheres. WDIPis a community-driven development project that seeks toenhance women's empowerment and participation indevelopment interventions by mobilizing women at thegrassroots level and capitalizing on their potential tosupport development processes. WDIP seeks to redress genderimbalances in development opportunity by investing inwomen's skills, productivity, and organizationalcapacity. This report is structured as follows: section onegives introduction. Section two outlines the objective andconceptual framework. Section three presents research designand methodology. Section four focuses on analysis ofwomen's empowerment and the determinants ofempowerment. Section five presents impact evaluation of WDIP.