This thesis by Pragya Shrestha aims to analyse MUS in terms of its cost effectiveness in domestic water supply services and conduct poverty impact analysis, taking a case study of Nepal. The study provides evidence of the very positive cost-effectiveness, as well as of other livelihood benefits, such as increase in saving and credit groups, getting access to luxury items, initiating other income generating activities and having better access to high-value food such as fresh vegetables. It concludes that MUS is not only a financially profitable investment, but is also beneficial in terms of social development. There is a high potential for the MUS in countries like Nepal, if its challenges are addressed.