We present a quantitative theory for ferromagnetism in diluted III-V ferromagnetic semiconductors in the presence of the two types of defects commonly supposed to be responsible for compensation: As anti-sites and Mn interstitials. In each case we reduce the description to that of an effective random Heisenberg model with exchange integrals between active magnetic impurities provided by ab initio calculation. The effective magnetic Hamiltonian is then solved by a semi-analytical method (locally self-consistent RPA), where disorder is treated exactly. Measured Curie temperatures are shown to be inconsistent with the hypothesis that As anti-sites provide the dominant mechanism for compensation. In contrast, if we assume that Mn interstitials are the main source for compensation, we obtain a very good agreement between the calculated Curie temperature and the measured values, in both as-grown and annealed samples.Diluted Magnetic Semiconductors are materials where the interplay of transport and magnetic properties open the perspectives of exciting applications. The III-V semiconductors are particularly promising since a low concentration of magnetic dopants can give relatively high Curie temperatures for ferromagnetism [1,2]. In these materials it is found that the Curie temperatures depend strongly on methods of preparation and sample history: for the same nominal concentration of magnetic ions the Curie temperature may vary by large factors. Systematic studies show that different annealing treatments display a clear correlation between the Curie temperature and the conductivity. This indicates that the process of magnetic doping is more complex than a straight substitution (Mn(Ga)) of (formally) Ga 3+ sites by Mn 2+ atoms, providing a localized magnetic moment and an itinerant hole. In fact the original samples are "compensated", i.e. the density of holes measured by transport is lower than the concentration of magnetic ions due to additional donor impurities especially in the samples as grown by Molecular Beam Epitaxy (MBE). The increase in T C after annealing is then interpreted as removal of the defects, resulting in an increase in the hole concentration which mediates the magnetic exchange. This leaves obscure the precise form of the compensating defect, and does not provide a quantitative theory relating the Mn 2+ concentration, the hole density and density of compensating defects to ferromagnetism.There are two probable candidates for compensation: both Arsenic antisites As Ga (i.e. As atoms on sites of the Ga sub-lattice) and Mn interstitials Mn I have long been known to be double donors. The two forms of de- * email:georges.bouzerar@grenoble.cnrs.fr and bouzerar@ill.fr † and CNRS email:ziman@ill.fr ‡ email:kudrnov@fzu.cz fects differ in an important way: for each As Ga there are two holes removed, i.e. only the carrier density is changed, while each interstitial, in addition, introduces a magnetic moment, changing the number of magnetically active ions. Microscopic calculations indicate that the Mn I are ...