Safe, adequate water supply is the basic needs, and essential for the socioeconomic development of a given society. However, majority of the people in the Amhara Sayint Woreda rural settings still did not have access to potable, sufficient and sustainable water supply. The objectives of this study is to evaluate the challenges of rural water supply schemes by assessing and evaluating the main factors related to community, financial, technical, institutional and environmental in the rural water supply scheme. A combination of purposive and simple random sampling techniques was used to identify sample kebeles, water supply schemes (villages) and household respondents in Amhara Sayint Woreda. 55 water supply schemes and 195 HHs were selected purposively and randomly. Both Cross-sectional and Triangular design with descriptive analysis was applied using different data collection methods. Data were collected through household survey, focus group discussion, key informant interview and personal observation. The thesis used both primary and secondary data sources and was both quantitative and qualitative collected and analyzed using SPSS 16.0 version software. The results from the study indicated that poor community participation in the stage of planning, implementation and management, low level of women participation, weak performance of water committee and weak sense of ownership from the community, Inadequate financial contribution for O&M, poor construction quality, lack of trained technician and weak institutional support are the main factors for the sustainability of rural water supply schemes. Water supply schemes failed due to depth, pump failure, inadequate spring tap, reservoir and water point construction, water quality and users operation and management problems.