The purpose of this paper is to present an overview of water supply, sanitation, and environmental conditions in the rural areas of Asia and the Near East (ANE). It also discusses the role of water supply and sanitation in economic development, health, and quality of life in rural areas of the ANE region. in addition, it recommends strategies for the further development of the region in the 1990s. This paper is part of a larger effort by the ANE Bureau of the United States Agency for International Development (A.I.D.), which is formulating a strategy to underline the significance of natural resources management and environmental protection for sustainable development in the region.