Evaluates project, implemented by CARE, to install water systems and latrines in villages in Orange Walk and Corozal Districts, Belize. Mid-term evaluation covers the period 7/84-4/87 and is based on site visits and interviews with CARE, USAID/B, and Government of Belize (GOB) staff. The project has many positive aspects, but its long-term sustainability is in doubt. On the positive side, the facilities being constructed are sound, a good health education program for both adults and schoolchildren has been developed, and project personnel are using health education modules to work closely with participating communities to increase the impact of the water supply and sanitation infrastructure. Moreover, the level of community participation (in constructing latrines, providing materials, installing pipe) has been high. On the other hand, several factors threaten sustainability. (1) No counterpart personnel have been assigned to work with the project (except the national coordinator, who is also responsible for two other major projects). (2) Operations and maintenance (O&M) training at the community level is poorly planned and sporadic. (3) Communities have had little involvement in planning and evaluating the project, or in other areas that will help to develop long-term organizational and management capabilities. (4) The concept of fee collection for O&M and expansions has not been adequately addressed. Communities are ill-prepared to collect and manage operating funds. (5) The GOB Water and Sewerage Authority is inadequately equipped (in terms of personnel, equipment, and spare parts) to assume responsibility for hand pump maintenance; there are, and will continue to be, delays of up to 6 weeks in responding to requests for maintenance. (The private sector could play an important role here.) (7) The GOB's capabilities to install well-constructed wells in a timely fashion are also inadequate. Better equipment and (especially) long-term training of drilling crews are needed. Recommendations directly address the above-mentioned project deficiencies. (Author abstract, modified).