The Cuvelai-Etosha Basin area is centrally located on the northern border of Namibia. It is semi-arid, and traversed by shallow, ephemeral watercourses called oshanas, which originate from Angola and flow southward. The drainage lines of the oshanas converge near Lake Oponona and then flow into Etosha pan. Mopane shrubland and saline grassland are the dominant land types in the area. The Oshana area is fairly densely populated with about 100 people per square kilometer. The livelihood of the majority of the people in this area depends mainly on land for subsistence farming, firewood and water. The main objectives of this study were to determine the water balance of Olushandja dam, to assess the potential for distribution of water along the Etaka Canal flowing out of Olushandja, to assess vegetation conditions and land uses and to investigate the assets, dynamics and conditions of the Lake Oponona area.