Communities demand that community-basedwater provider organizations (CBOs) be more professional intheir delivery of water and provide the level of servicethey expect. This demand may be a challenge, not only interms of the internal capacity of the CBO but also in termsof the uncertainty as to the legal status of theorganization that performs the service function. A dearth ofcorporate practice, efforts toward formalization,accountability framework, and partnership definition areareas that policymakers and local authorities need to workon if they want CBOs to perform their role better in watersupply, particularly in rural areas. This smart lessondescribes the Multi Village Pooling Project'sexperience in generating lessons on the challenges andpotential of CBOs formed under previous projects andidentifies ways to help them improve, expand, and manage ona continuing basis.