This study assesses the determinants of households’ adoption of rainwater harvesting ponds, and its impact on agricultural intensification and yield in Alaba Woreda, southern Ethiopia. Results are based on data collected from a survey of 152 households and 1036 plots operated by the households. Households were stratified into those with rain water harvesting ponds and those without from which equal number of sample households ware drawn. Analysis of descriptive information and econometric methods are used. Analysis of qualitative information supplemented the econometric results.