Water supply and sanitation in Rwanda is characterized by a clear government policy and significant donor support.

In March 2015, the government signed a 27-year contract with a private company to invest $75 million in order to provide 40,000 cubic meters/day of bulk water from a wellfield next to the Nyabarongo River to the capital Kigali.

The data appear to indicate that access decreased over time, while in the same period significant investments were undertaken in rural water supply.

The government's 2002 Poverty Reduction Strategy Paper acknowledges that indeed "sustained access to potable water sources has probably declined in rural areas" since 1995.

[5] A main reason is poor maintenance and insufficient cost recovery, leading to the breakdown of systems shutting down water supply's, in particular those relying on pumping.

[4] According to calculations based on data from the 2002 census, access to an improved source of water supply was 80% in urban areas and 67% in rural areas, including in the definition of improved source house connections, yard connections, public standposts, protected wells and protected springs.

The following map shows access to an improved source of water supply by districts and towns according to the 2002 census: Map of access to an improved source of water supply According to the 2005 Integral Household Living Conditions Survey, however, 66% of the urban population and 57% of the rural population had access to an improved source of drinking water.

)[7] If the figures were comparable, this would imply a massive decrease in access to water and sanitation in both urban and rural areas over the preceding five years.

However, according to a World Bank report, access to rural water supply in Rwanda increased from 41% in 2001 to 55% in 2005.

According to the government, access to water supply in rural areas increased significantly in only two years from 57% in 2005 to 71% in 2007.

[2] Rwanda has abundant rainfall and water resources, totalling 5 billion cubic metres (180×10^9 cu ft) per year.

[14] However, deforestation and erosion affect the productivity of springs, which are the main source of water supply in rural areas.

From 1950 to 1984 water in rural areas was provided free of charge to beneficiaries and infrastructure was owned by the national government.

In 1987 a decree (Arrêté Présidentiel n°291/11 du 15 mai 1987) transferred ownership of rural water infrastructure to districts, well before the government enacted a comprehensive decentralization policy.

As a result, about half of rural water schemes did not function in 2004 according to an extensive field survey.

In 2000 the government began a process of decentralization, giving the country's 30 districts more revenues and decision-making authority.

With the backing up of the national government, districts thus competitively bid out and signed contracts with private service providers throughout the country.

In 2008, RWASCO had signed a three-year agreement with the National Water and Sewerage Corporation (NWSC) of Uganda for performance improvement and to promote commercial service delivery.

In rural water systems managed by private operators in 2004 the water tariffs per jerrycan of 20 liters varied between 14 and 25 Rwandan Franc (RWF), equivalent to about 2.5 to 4.5 US cents per jerrycan or US$1.25 – 2.25 per cubic meter, according to the Utilities Regulatory Agency.

Private operators also pay a monthly rent to the districts for the right to use the systems, which remain publicly owned.

10% of tax revenues are allocated to the CDF by law, although actual transfers remained short of this target in 2003.

[23] The 30 Districts of Rwanda sign annual performance contracts with the President of the Republic about the construction of water facilities and the protection of catchment areas.

It proposes a pooled Water and Sanitation Fund that would handle both government and donor contributions through the same national procedures.

[8] According to the Rwandan Development Gateway, in 2005 Rwanda's "achievements in establishing an aid coordination, harmonization, and alignment framework are being recognized as international best-practice.

The water project will benefit the four districts of Kanzenze, Gashora, Bicumbi and Kanombe in the eastern part of Kigali city.

[26] The African Development Bank has recently committed US$12 million to rural water supply and sanitation.

[27] In 2009 the Government of the Netherlands has committed US$22 million for a Water for Sanitation and Hygiene (WASH) project to be implemented by UNICEF.

The aim of the project is to increase the provision of water services and of sanitation facilities as well as to spread good hygiene practices.