Abstract: This study was done to examine the contribution of small water projects in the households towards poverty alleviation. The study used a cross-sectional design and survey method to collect the data. Multistage sampling was used to obtain the sample in which four wards were purposively selected. In each ward one village was randomly selected in which 20 respondents were interviewed from each village. Data analysis was done by using Statistical Package for Social Science (SPSS) in which descriptive statistics along with Principle Component Analysis (PCA) were used. The study identified irrigation, livestock, aquaculture, food canteens, selling of water, ice-creams and juice, bricks making and local brew production as the main households’ water projects. The role of these projects included creation of employments in which the majority of employees were women. The small projects generated households’ income in which over 60% of the participants in the water projects had an income above poverty threshold.