A project in Peru funded by the Adaptation Fund and implemented by the Development Bank of Latin America (CAF) is improving livelihoods of communities in five highland provinces of the Arequipa region in southern Peru resting in the foothills of the Andes that have been vulnerable to drought, cold spells, and frost. The project is promoting alpaca rearing and fiber production by installing safe water systems and pressurized irrigation modules as well as improving rustic channels to optimize water management. About 70,000 residents of 36 alpaca-producing communities living in extreme poverty have improved living conditions as a result of the project.