Provides final contractor report (1/79-2/83) on a project to establish a Soils and Water Laboratory to help the Government of Djibouti (GROD) assess its agricultural potential. Key project objectives were achieved. The planned laboratory was established in the Ministry of Agriculture and Rural Development's Genie Rural and most equipment is in place. Djibouti technicians were trained to describe, sample, classify, and map soils (and in water quality analysis and reporting); and soil and water data collection and dissemination systems, as well as a technical reference library, were established. In the project's second main area of activity, a nationwide soil survey was conducted; 55 soils were identified and located on 4 maps of different scale which also identify soils suitable for irrigated and rain fed agriculture, as well as potential range and watershed sites. Work was begun on maps of land ownership, watersheds, major land slope categories, soil climate, and general elevation. A soil inventory and land classification were also undertaken in selected areas. Other accomplishments included preparation of special soil survey reports for the United Nations and the GROD Minister of Agriculture and of reports on the water quality of agricultural wells and on land in seven major slope categories and in watershed areas. Nonetheless, some implementation problems were encountered. Because an operational budget for the laboratory was not initially provided, a large amount of time was spent securing the laboratory's legal status (now established) and authorizing personnel positions, and funds were not readily available for construction. While funds and labor obtained from the Genie Rural were substituted when possible, construction still took a year and a half and required constant supervision. Delays also occurred in soil and water analysis training (which remains to be completed) and in acquiring laboratory materials and equipment. Recommendations for a crop production strategy, based on water availability and soil suitability, and for initial GROD agricultural investments are included. Very extensive project documentation is appended.