Creative Communities II (CC II) harnesses creative expressions and utilizes community-based creative methodologies as a means of strengthening participation and of ensuring the inclusion of poor and marginalized members of the community in the National Program for Community Empowerment (PNPM Mandiri). Learning from CC I, CC II adopts a narrower shape to support PNPM Rural by developing creative processes that empower communities to play an active role in ensuring transparency and accountability in the use of village development funds. Phase 1 of CC II was implemented in the period from April 2013 to June 2014 in 13 villages across seven sub-districts in three districts, Bone (South Sulawesi), North Lombok (West Nusa Tenggara) and Landak (West Kalimantan). This report describes activities implemented under Phase 1 of CC II, its outcomes, the challenges it faced, and the lessons learnt from its implementation, together with plans for the next phase of the project. The report draws from the findings of project reports prepared by Yayasan Kelola and the World Bank, phase 1 assessment and case studies, documentation of CC II outputs and interviews with CC II management.