Sustainable development of the water sector is not just about completing a facility or the installation of a hand pump, but the way these interventions are used to improve the quality of people’s lives. Traditionally water projects had a strong engineering orientation and were looked at in isolation, often resulting in poorer sections being exempted from the actual benefits or poor maintenance of these structures. So, there has a been a shift in focus of Government of Gujarat from large piped regional water supply to a more community owned, sustainable system through decentralization of decision making and user involvement. Community managed water supply systems are the mission of WASMO. This study assesses the levels of community ownership and responsibility of local drinking water systems in earthquake affected villages of Kutch district. A qualitative research design was followed using a mix of observations, meetings and semi-structured interviews with the key informants. These cases suggest that communities are capable of devising their own rules for resource management. However, that alone is not sufficient to ensure the sustainability and viability of collective institutions.