The operation and maintenance (O&M)expenditures incurred on rural water supply schemes in Indiais commonly much less than required and this has seriousimplications on their performance. This is one of the majorfindings of the 10-state (Punjab, Maharashtra, Kerala, WestBengal, Orissa, Tamil Nadu, Karnataka, Andhra Pradesh, UttarPradesh, and Uttarkand) study on the Effectiveness of RuralWater Supply Schemes undertaken by the World Bank at therequest of the Government of India. The study also analyzedthe issue of cost recovery, which is generally low, butdiffers across states, among technologies, and betweendemand-driven and supply-driven schemes.