Ethiopian rain-fed agriculture is constrained by erratic rainfall and traditional farm-technologies. Weather risks and backward technologies (local inputs and traditional equipments) cause low output and little commercialization. These led the government to introduce new irrigation technologies called water harvesting, which include ponds, hand-dug-wells, stream and flood diversions. With respect to new promising technologies it is important to know how adoption and diffusion of these technologies proceeds, and to know whether the intended impacts are obtained and/or whether there are other unexpected impacts. Technology adoption theory suggests technology diffusion follows an S-curve. This assumes technology choice by farmers. However, additional incentives provided to farmers could change this pattern. With regard to the impacts of new technologies, microeconomic theory suggests that technological change shifts production function and/or changes cropping pattern. The shift in production function can arise from a fall in weather risk and relaxation of the moisture constraint. Lower production/weather risk encourages the use of modern inputs (fertilizer, equipments) and enables better land and labor allocation. This in turn increases output for consumption and market, which can have commercialization and welfare effects. The objective of this study is to investigate the adoption pattern and the economic impacts on farm households using microeconomic theory and econometric analyses. Specifically, we sketch the technology adoption path to examine how the technology introducing approach affected the adoption pattern. Next, we examine if the new technologies have brought the intended impacts: whether they change risk-behavior and whether they increase productivity and output. We also measure commercialization and poverty-reduction impacts on farm-households by analyzing relevant indices.