Few development projects have a greater potential for directly benefiting the rural poor than water supply improvement projects. The benefits which accrue from potable water projects include improved water quality, quantity, accessibility, and reliability. This paper considers the non-engineering aspects of such projects in an effort to improve site selection and design. Three major issues with regard to water projects are water quality and its proper emphasis, the role of education, and water facilities maintenance. Over the past few decades a wide array of diseases have been grouped together as waterborne or water-related diseases. This has unfortunately led to a misunderstanding of the relationship between water and many infectious diseases. For example, it was once doctrine that diarrheal disease was transmitted primarily through water sources. However, recent research has found little evidence to support this thesis. In fact, a number of studies have shown decreases of diarrheal disease with increases in water availability without regard to quality. These studies have also recommended the inclusion of a community education component in all potable water projects. Due to poor hygiene, water that is perfectly safe at the tap is often polluted by the time of consumption. Finally, it is maintenance that often determines the success or failure of water projects. An estimated 35% to 50% of rural water projects are not functioning 3-5 years later. For the most part, developing countries have tended to emphasize construction, with little thought given to future maintenance or recurrent expenditures. This tendency has been buttressed by a similar lack of attention from international donors. Overall, the author recommends greater emphasis on social analysis (earlier in the project planning stage than now is customary) as well as increased community participation in terms of planning, assignment of financial responsibility (or in-kind services), and maintenance. Report includes an annotated bibliography (l8 items, 1964-78), a brief report on A.I.D. experiences in water supply programs, and checklists for social and sector analyses of potable water projects.