This document discusses indicators for monitoring and evaluating projects. It defines indicators as variables used to measure project outputs and impact. Key points made include: indicators are important for defining how effectiveness will be measured, aiding managers assess progress, and providing a basis for evaluation. The document outlines three types of indicators - process, outcome, and impact - and gives examples for a water project. It stresses that good indicators must be precise, reliable, valid, measurable, and practicable.