Community-managed services, as opposed to state- managed services have come up as alternative service delivery mechanisms in many parts of the world. Many federal and regional governments have resorted to go in for arrangements that are close to the users of service, (or services delivered by the market) rather than centrally being managed. The state government of Tamil Nadu, in India as part of sector reform measures has shifted the responsibility of providing drinking water supply to a community- managed system. This is viewed as a major reform in rural drinking water sector in India. This research is an empirical verification to find out the functioning of community-managed water service delivery system in the villages of Tamil Nadu state in India. This was taken up as a research for obtaining PhD degree from the Department of Rural Development, Gandhigram Rural University in Tamil Nadu, India. This thesis must be a good reference material to anybody involved in understanding the drinking water sector, and reform initiatives in drinking water supply system in India.