This paper critically examines the issues related to the implementation and functioning of community managed rural drinking water schemes in Kavre and Baglung Districts of Nepal. The results are based on studies of drinking water projects of non-government organisation (NGO), international non-government organisation (/NGO) and government organisation (GO) implemented in Nepal during 1986 to 1997. The data used in the study were based on review of reports and field survey in the year 2000. The discussions focused more on assessing t/ie water quality and effectiveness of Water User Committees (WUC) of 179 Drinking Water Supply ( DWS) schemes. The awareness of existing inequalities and their social and economic consequences have intensified in the project interventions for improving the general welfare of rural population, as well as for a more efficient use of drinking water. This paper concludes that awareness of safe drinking water and preparing communities before planning and construction of water systems is a prerequisite for the long-term effectiveness and sustainapility of drinking water systems. The management of the user group committee is like wise crucial in DWS project.