This study was aimed to examine practices and challenges of community managed rural potablernwater schemes in Delanta, Amhara region. The motivation for undertaking this study is to enablerncommunity manage rural potable water schemes by itself effectively which determines itsrnsuccess. In this study both primary and secondary data sources were used. The primary datarnwere collected through closed ended questionnaire was employed to collect quantitative datarnfrom selected household, an interview guide was prepared and information was gatheredrnthrough unstructured interview of key informants and focus group while secondary data wererncollected from was from government and non-governmental publications, annual and inventoryrnreports, previous studies, books and websites. Out of 4502 sample kebele population for thernstudy, 108 individuals were taken as a sample through random sampling techniques. Therncollected data was analyzed through descriptive analysis using SPSS version 20. Water supplyrnschemes developed by government, NGO with participation of community in the rural areas ofrnDelanta woreda and developed water points, transfer to WASH committees so as to fill therninstitutional gap at the grassroots. The results of the study revealed that potable water pointsrnhave not been managed as envisaged due to shortcomings in the approaches followed byrninterventionists, inadequacy of the emphasis given to capacity aspects and low level ofrncommitment and participation in managing these schemes. As a result, service fees have not beenrncollected. They do not have financial record, auditing and reporting system. Out of 497rnimproved water points, 130 improved water points have faced breakages of various kinds due tornproblems in operation and management. Most of these points were not maintained due tornfinancial constraints to cover maintenance expenses. Furthermore, users manifest dependencyrnfeelings in that they require the government to maintain broken points. The institutionalrnarrangement was poor. There is no cooperation and integration among WASH committees,rnworeda and zonal water office. These water offices have shown inadequate capacities torncontribute to the continued functioning of improved points. There has been inadequaternmonitoring and support from local water offices to WASH committees. Recommendations werernforwarded by the researcher based on the results of the findings and conclusions of the study; asrndesigning objectives of approaches, participation, factors and institutional aspects very well;rnproviding adequate capacity building on improved water schemes to motivating community andrncommittees.