The Resources and Shaping Forces1 (RSF) model is developed from a case study in Tigray, Northern Ethiopia, using modified grounded theory. It provides a conceptual framework for identifying, describing and analysing livelihood and natural systems at the community level, and helps link the principles of sustainable livelihoods to those of community development. The shaping forces set of institutions, interventions and perturbations describes the influences on and determinants of resource availability (endowment) and resource access (entitlement), together with the duties and responsibilities of various community members (entrustment). Applying the model requires community groups, households and individuals of different gender and wealth categories to articulate their perspectives on the dynamics of the livelihood and natural systems.