In this thesis high quality electron densities are used to provide insight into density functional theory (DFT) and to improve the quality of DFT calculations. Chapter 1 provides an introduction to ab initio molecular wavefunction calculations with particular emphasis on the Hartree-Fock method. Chapter 2 outlines important concepts in density functional theory (DFT). This includes a discussion of the Zhao, Morrison and Parr (ZMP) method, which is the key to calculating DFT quantities from high quality densities. In Chapter 3, high quality densities are used to gain an understanding of dispersion interactions in the helium dimer. The investigation seeks to understand the correlation potentials associated with a density distortion that gives rise to the correct dispersion forces. Chapter 4 presents a study of response properties using orbitals and eigenvalues determined from high quality densities. Both magnetic and electric properties are considered and comparisons are made with conventional DFT functionals and wavefunction methods. Chapter 5 makes a comparison between Kohn-Sham eigenvalues and related properties, generated both by conventional functionals and from densities. The influence on NMR shielding constants is considered and two approaches to correcting LUMO eigenvalues are presented. In chapter 6, a DFT exchange-correlation functional determined from a lit to high quality densities is applied to study the gauche effect in 2-fluoroethylamine, 2-fluoroethanol and their protonated analogues. Conclusions are presented in Chapter 7.