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Synopsis Since 1995, Danish International Development Assistance (DANIDA) has been organizing international workshops on watershed development every alternate year. The four previous international workshops, organized in India (1995), Tanzania (1997), Nepal (1999) and Eriteria (2001), respectively, focused on the general themes of: Learning process; participation and sustainable development; regenerative package; and economic and organizational sustainability. The Watershed Development Coordination Unit (WDCU) of the DANIDA Watershed Development Programme (DANWADEP) in India recently hosted DANIDA's Fifth International Workshop on Watershed Development on the theme of capacity Development Initiatives in Watershed Development. During the course of this workshop, numerous papers, including a variety of case studies, were presented. This publication is a comprehensive compilation of all the papers presented at the workshop, along with the group reports and the task force recommendations.