This report assesses adaptive capacity in the Tegua island community in northern Vanuatu and examines the role of the ‘Capacity Building for the Development of Adaptation Measures in Pacific Island Countries’ (CBDAMPIC) relocation project in shaping it.This case study illuminates the opportunities for, and barriers to, adaptive capacity in the Tegua island community in northern Vanuatu, using a Pacific-specific analysis framework developed by a collaborative effort between the University of the South Pacific (USP), the Red Cross and the Secretariat of the Pacific Community (SPC). It examines the experiences of the community in a pilot project involving relocation and water resource management as part of the regional Capacity Building for the Development of Adaptation Measures in Pacific Island Countries (CBDAMPIC) program for climate change adaptation. In particular, it examines the impacts of the CBDAMPIC pilot project in shaping adaptive capacity in this community.This report was supported by funding from the Australian Government under the Pacific Australia Climate Change Science and Adaptation Planning (PACCSAP) program.