 The Nile Basin Development Challenge is a project aiming to improve the livelihoods of farmers in the Ethiopian highlands through land and water management. The NBDC was initiated in 2010 by the CJR Challenge Program on water and food. Water scarcity and land degradation strongly affect the livelihoods of millions of households in the Nile Basin. Agriculture is predominantly reliant on rainfall and is aimed at subsistence production. Yields are therefore low and most farmers cannot meet their food requirements from agricultural law. To meet the needs of Ethiopia's growing population and to restore fragile landscapes, we need to reverse land degradation and improve productivity. Ethiopia's policies and programs on sustainable land and water management have evolved over several decades and have had important positive impacts. We believe that existing policies and programs can be built upon through alternative approaches to implementation. The Nile Basin Development Challenge has identified eight key messages that will help improve rural livelihoods while conserving the environment. These eight key messages are Empower local communities and develop their leadership capacities. Official government guidelines emphasize that land and water management interventions should be planned and implemented through a participatory process. The evidence is clear that involving local communities in all states of planning and implementation increases both the benefits and sustainability of initiatives. Men and women, young and old, and those who do not always have a voice, should be included to ensure the success of interventions. This requires capacity development and alternative approaches to ensure that members of the wider community are better represented in decision making. Encourage innovations through integrating and sharing scientific and local knowledge. Participatory learning processes which encourage experimentation will complement and strengthen existing extension approaches. Partnerships between farmers, researchers, development agents and government representatives will lead to the sharing of diverse knowledge. The combination of local and scientific knowledge and practice will lead to more appropriate interventions that are tailored to local conditions and the need of communities. Strengthening and transform institutional and human capacities among all stakeholders to achieve the potential benefits of sustainable land management. Ongoing professional development and training of all those involved in the design and delivery of interventions is critical to achieve the potential benefits of land and water management initiatives. A special focus on development agents as frontline champions is recommended. Capacity development should include practical, hand-on training and mentoring on a regular basis, with a particular focus on the development of facilitation skills. Soft skills need to be accompanied by access to resources such as transport and equipment to ensure successful delivery. Creating online incentives for all parties to successfully implement sustainable interventions at scale. The current incentive system for local government employees is based on achieving physical targets such as building terraces to meet quota set at higher levels. This often leads to inappropriate interventions which can impact negatively on vulnerable farmers. Development agents, farmers and government representatives need positive incentives to encourage them to introduce innovative approaches. Incentives could include formal and informal rewards such as opportunities for capacity development. These incentives must be consistent and agreed upon at all levels. Adapt new models and tools to increase the effectiveness of planning, implementation and capacity building. There is a growing set of proven tools and models for participatory planning processes and higher level planning which can improve sustainable land and water management outcomes. This can be made available and utilized in trainings to develop the capacities of all stakeholders to undertake more informed, appropriate and inclusive approaches that will improve sustainable land and water management outcomes. Integrated multiple land and water management intervention at watershed and basin scales. Ethiopia has a long history of promoting single interventions, for example stone terraces, but there is a strong evidence that these do not always produce good results. Substantial benefits can be achieved by moving beyond single technological interventions towards a more integrated approach. Far greater benefits will be achieved by identifying an appropriate mix of interventions for different zones. One size does not fit all, even in a small watershed. Consider the costs and benefits of land and water management interventions both downstream and offsite as well as upstream and on-farm. In many cases, the main benefits of an upstream intervention go to downstream stakeholders and not to the upstream farmer. When land and water management interventions benefit the public, rather than individual farmers, or when the effects go primarily downstream, government action may be necessary to provide appropriate motivation and incentives. Improve markets, value chains and multi-stakeholder processes to enhance the benefit and sustainability of land and water management interventions. The success of interventions can be increased by ensuring that all stakeholders, particularly farmers, receive tangible economic benefits. Forum that improve interactions and joint learning between diverse stakeholders can help to ensure that rural men and women gain a better share of agricultural profits. The Nile Basin Development Challenge has identified these eight key messages through a combination of scientific evidence, implementation experience and stakeholder consultation. No one message is more important than another. They all need to be acted upon in an integrated way for sustainable land and water management to be achieved. This will benefit local farmers while also conserving the precious natural resources of the Ethiopian highlands and beyond. Implementation of these eight key messages does not require radical change to policy, however it does need a significant change to the way that existing policies are implemented. We strongly recommend increased emphasis on community leadership, incentives to ensure the commitment and enthusiasm of all stakeholders to practice new and innovative ways of working, capacity development for new skills and the encouragement of new partnerships at all levels. The eight key messages from the Nile Basin Development Challenge were presented to Ethiopian policymakers at national level. The lessons learned will be incorporated into ongoing Ethiopian policy initiatives. The work of the NBDC will continue under other CGR research programs such as water, land and ecosystems and integrated systems for the humid tropics.