Climate variability, especially during El Niño-Southern Oscillation (ENSO) episodes, results in droughts that cause significant losses, particularly affecting the agricultural sector on which Nicaraguans' food security depends. This project is designed to reduce drought and flooding risks generated by climate change and variability in the Estero Real River watershed. To reach this objective, this project relies upon a coordinated set of interventions designed to implement new public policies for addressing climate change by introducing agro-ecological practices and participatory watershed management in highly vulnerable rural communities. Through targeted investments in water retention, long-term farm planning, and institutional capacity building in local communities, municipalities and government agencies, the project will validate an adaptation scheme as a vehicle for implementation of the national climate change strategy.