The government of Rajasthan (India) is executing an Integrated Water Supply, Sanitation, Health Education and Community Participation project estimated to cost US $100 million in its first phase to provide sustained water supply, Sanitation and Health Education to about 400 villages with the assistance of the governments of India and Germany. The main objectives of the project are to: provide sustained/ regular water supply; improve environmental sanitation and health; create awareness of the value water and prevent waste; provide payment towards water; and, create a sense of ownership among the masses. To achieve the objectives of the project, hel from the community has been organized from the planning stage to execution and then during Operation & Maintenance. The community participation and sanitation are organized through an autonomous organization CPU. The village distribution system is laid in the trenches excavated by the villagers through voluntary labor. Site identification for stand posts and cattle water troughs is decided by the villagers. Maintenance and repair of the distribution system within the village is the responsibility of the Water Health Committee (WHC) of the village which also decides a model for collecting water charges from villagers. The WHC and women's group have greatly helped in significant improvements in the sanitation level within the village, greatly enhanced consciousness for water conservation and preventing water waste. One of the significant results of involvement of the community and cost recovery is enormous saving of water. The long queues of women and children at the stand post have almost disappeared. So far, 335 villages are getting 24 hours regular water supply at designed pressure on sustained basis; people are managing water supply within the village and are paying water charges on a regular basis. Sanitation and health status in the villages covered have greatly improved. Includes 3 references, table, figure.