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This study assesses the determinants of households' adoption of rainwater harvesting Technology, rate of adopted RWHT use and impacts on farm income increment and employment generation for farmers of study areas of three districts in the Central Rift Valley of Oromia Regional State of Ethiopia. Results are based on data collected from a survey of 300 households in 2007. Households were stratified into those with rain water harvesting structures and those without, from which equal number of sample households was drawn. Descriptive statistics and econometric methods were used for data analysis of qualitative information supplemented by the econometric results.