This paper assesses the Poverty Alleviation Funds (PAF) supported income generating activities and their contribution to impact on raising income of the poor households after five years of its implementation in two districts, Sarlahi of the Tarai plain region and Baitadi of the Hill region, among the forty districts where the government has been allocating PAF in different areas requiring progress. It also compares the peculiarities in the distribution of benefits or revenue between the two districts and attempts to answer whether they are related to the geographical locations, whether the social hierarchy comes into the play, and whether there are other contributors to the varying levels of success and efficiency. The analysis of
these aspects is based on the information gathered by using participatory rapid appraisal method among 678 households of 24 Community Organizations carried out in those two districts from April to March 2011.