Evaluates project component to develop and implement a model rural water supply and sanitation (RWSS) program to be coordinated by Ecuador's Secretariat of Integrated Rural Development (SEDRI) and implemented primarily by the Ecuadorian Institute of Sanitary Works (IEOS). Special mid-term evaluation covers the period 9/81-9/84 and is based on document review, site visits, and interviews with USAID/E and SEDRI personnel. IEOS has made little progress in developing a replicable RWSS model. Of the four low-cost technologies mentioned in the project paper, only one - the pour-flush toilet - has been developed to the operational stage. Construction of gravity and mechanical pumping water systems, installation of hand pumps, digging of wells, and construction of latrines are also all behind schedule. More positively, communities have been fully involved in system planning and in preliminary socioeconomic/sanitary surveys, and have also provided labor and funding inputs. For each system built thus far, a community junta, responsible for ongoing operation and maintenance. has been formed. However, only about half of the pour-flush toilets installed are being used, indicating a need for more sanitation education. Institutional development at the national level is far behind schedule. As yet, there is no coordinated training plan; although some short-term training activities (courses, workshops, in-service training) have been conducted, none of the planned M.S. training is yet underway. Nor have job descriptions for responsible staff yet been developed. At the provincial level, some encouraging steps, e.g., the use of promoters to help engineers and of contractors for civil works, have been carried out on the initiative of provincial engineers with little help or support from IEOS or SEDRI. The project's funding arrangements are unnecessarily complex and a major cause of lack of progress. The project is at a critical juncture: its objectives are still obtainable, but much must be done. Three elements are essential: (1) community participation in all phases; (2) constant seeking of means to lower costs and expand coverage; and (3) maximum use of paraprofessionals to assist engineers and administrators. A total of 26 recommendations are made.