Functionality of rural drinking water points in Ethiopia is very low. This research aimed to evaluate ofsustainability of water supply schemes in rural kebeles of Bahir dar Area. The study employed a combination of purposive and simple random sampling techniques to select sample kebeles and sample water supply schemes. Of the total of kebeles in the study area, 51 water points were selected for the study. Data were collected using questionnaires, focal group discussion, key informant interviews, and field observation. The collected data were analyzed quantitatively, data obtained through questioners, and data obtained through focal group discussion and key informant interview were analyzed qualitatively. Of the surveyed water schemes, 52% were functional, 26% non-functional, 9% were partially functional, and 13% were abandoned. 91% of schemes have no watershed plan. The majority of the water supply schemes (52%) supply is inadequate due to an increase in the number of beneficiaries, low drilling depth, and pump failure. 58% of the users do not pay for operation and maintenance costs. Community participation was high during construction whereas weak in the planning phase. Of the total surveyed water schemes, 71% were don‘t have local trained caretakers to undertake operation and maintenance. Government support to manage and sustain the water scheme is low. 65 % beneficiary not satisfies and all the sample did not meet the recommended value of world health organization (0CFU/100ml). Therefore water utility office should give appropriate support to sustain schemes and encourages the Water committee, with provision of a reasonable tariff setting for the spare parts supply chain to repair and maintain the scheme with revolving funds in the long run. Keywords: functionality, rural water supply, Sustainability, Bahir Dar Area.