Karkheh Basin Focal Project (KBFP) is one of four pilot projects established by the Challenge Programme on Water and Food in late 2005. This document provides a brief overview of Karkheh Basin and highlights the key issues related to sustainable land and water management. It summarizes the progress during Phase-I and plans for actual project implementation (i.e. Phase-II) and expected outputs. The long term objective of the project is to identify best-bet water related interventions to mitigate poverty or improve livelihoods and test their potential impacts using an integrating modeling framework.