Addressing the root causes of women's poverty and overcoming barriers to their full participation in the management of natural resources are central to achieving the ultimate goal of sustainable development. This newsletter highlights factors which contribute to women's poverty, the impact of poverty on the environment, and ways in which natural resource management projects can be designed to overcome barriers to women's participation. The main focus is on ways in which USAID has responded to gender concerns in its natural resource management projects. Included is an overview of the USAID/Indonesia study exploring the links between urban environmental infrastructure services and health, particularly among female-headed households, and the subsequent adjustments which were made to the USAID/Indonesia programme. Also highlighted is USAID research into gender issues in natural resource management in Africa.