This study examines vulnerability in El Salvador in order to understand how development can drive a process of vulnerability reduction, and vice versa. This paper presents a study of rural agrarian communities in eastern El Salvador to examine their vulnerability to climate change and variability in order to gain an understanding of the relationship between development and disasters, and what sort of framework is required to ensure a process of adaptation to hazards and changes in hazard dynamics. It indicates that perceptions of risk and vulnerability play a fundamental role in determining how at risk people in El Salvador actually are. This has significant implications for the development process, because perceptions can hinder groups and individuals from embracing poverty reduction strategies.