This publication is a report on a study conducted by a team of researchers from the International Water Management Institute (IWMI), aiming to understand how the tsunami has impacted the livelihoods of people directly affected, and others, and to suggest interventions needed to bring the affected livelihood systems back to normal in the most appropriate and effective manner. The study concludes that the impact of the tsunami on people’s livelihood assets, activities, and outcomes is high. This report shows that restoring the economy requires short, medium and long-term solutions that will be undertaken in sequence.