The Kafr El Sheikh Water Supply Project is a comprehensive endeavour to provide the physical and institutional resources for an effective and sustainable water supply system for 2 million persons in a developing rural Governorate in the Delta region of Egypt. The paper describes the aims of the Management Component, the institutional development of an integrated water supply and sewerage company and the main activities to-date. These include training, operational improvements, health education and finance development. Further support is required until all engineering and institutional development work has been completed.