Development projects in tropical forests can impact biodiversity.Assessment and monitoring programs based on the principles of adaptive management assist managers to identify and reduce suchimpacts. The small mammal community is one important component ofa forest ecosystem that may be impacted by development projects. In 1996, a natural gas exploration project was initiated in a Peruvian rainforest. The Smithsonian Institution's Monitoring andAssessment of Biodiversity program cooperated with Shell Prospecting and Development Peru to establish an adaptive management program to protect the region's biodiversity. In thisarticle, we discuss the role of assessing and monitoring small mammals in relation to the natural gas project. We outline theconceptual issues involved in establishing an assessment andmonitoring program, including setting objectives, evaluating the results and making appropriate decisions. We also summarizethe steps taken to implement the small mammal assessment, provideresults from the assessment and discuss protocols to identifyappropriate species for monitoring.