As part of the measures to tackle water scarcity, especially during the dry harmattan season and ensure all-year-round agriculture production, the Government of Ghana embarked on a massive rainwater harvesting project, dubbed, “One Village One Dam (1V1D)” in northern Ghana. The project is intended to increase access to reliable source of water for livestock watering, domestic activities, and dry-season farming, all of which is to alleviate poverty and address the inequalities in rural and deprived communities. The 1V1D project has gone through political debates and implementation since 2017. Using a case study approach, this study evaluates the nature of implementation and use of the 1V1D project in the Savelugu Municipality in the Northern Region of Ghana. The study takes a critical look at both the intended policy objectives and the unintended outcomes for policy adjustment in an era of climate change, which is projected to heighten water stress in dryland areas. Findings showed that the shallow nature of the dams contributes to dry out even before the peak of the dry (harmattan) season when the communities need the dams’ water most, for example, for dry-season farming. Moreover, the sustainability of the 1V1Ds is being threatened due to the competition from herdsmen for water in the dams, which pollutes the water for domestic use. Findings point out the need for policy adjustments and mainstreaming, particularly in terms of implementation (design) and evaluation of existing and future 1V1Ds.