Statistics show low water coverage in rural Malawi. The Malawi government promotes community based management of rural water programmes. This study evaluated the sustainability of the approach by studying the system reliability, human capacity development, local institutional capacity development and financing mechanisms in 6 villages in Mulanje district. Study methods included focus group discussions with water committees and interviews with key informants and representatives of selected households. Field inspections were used to gather data to supplement data from interviews. At least 80% of the water points were functional. Trained caretakers were readily available for 12 out of 16 water point committees. There was low level of financial contribution for operation and maintenance as only 30% of respondents contributed. As such there is need to raise awareness of the communities on financial sustainability of these water points.