The shifting of paradigmn village development pushed government to establish the village economy through the Villageowned Enterprise (BUMDes). BUMDes has two main functions, namely as economic institution and social institution. The existance of BUMDes in Ponggok Village is expected to increase community’s welfare and to reduce poverty through utilizing local resources in the village. Objectives of this research are 1) to identify household’s welfare level of Ponggok Village; 2) to identify benefits of BUMDes Tirta Mandiri; and 3) to analyze the correlation between benefits of BUMDes to household’s welfare level. This research used quantitative approach supported with qualitative data. The result indicated a significant correlation between benefits of BUMDes Tirta Mandiri to household’s welfare level.