This report describes the first-year results and issues raised by a project monitoring procedure for the Water and Sanitation for Health and Ecuadorian Development (WASHED) Project, a joint effort of USAID/Ecuador and the Ecuadorian Institute for Sanitary Works (IEOS). The monitoring process investigated a set of progress indicators developed in 1990 by IEOS in concert with WASH, the local technical assistance (TA) team and IEOS project component leaders. These indicators mark key milestones or results associated with major project goal areas (e.g., decentralization, institutionalization of key programs, or procedures).