Appreciative Inquiry as part of positive psychology has been applied and grew over the last decade. Previous studies only see the application of appreciative inquiry in the field of organization. Critics claim that this approach is born, developed and applied to organizations or urban communities only. Appreciative Inquiry is believed to be incapable of changing the behavior of the poor people in rural area. This research discusses the process and outcomes of community empowerment program intervention by using appreciative inquiry approach conducted by Averroes Community in six poorest villages in Pasuruan Regency, East Java.

Grounded theory was chosen as a research method to see the process of intervention, interaction between individuals and the community change during  and after program. This method is also appropriate because of its superiority in capturing the causality of social phenomena. Data collection is done by interview and observation.

The results shows that after six months of intervention using appreciative inquiry, people not only being optimistic to escape poverty, but also move together to build small and medium enterprises and collective business. Beginning by mobilizing the potential of human resources, the poor can utilize the potential outside of them. Potentials they have not previously considered, there are natural resources, agricultural commodities, social, financial, physical, institutional, cultural, information and network.

Keywords: Appreciative Inquiry, Village Development, Positive Psychology Intervention