Abstract
Abstract The rationale behind the decision to invest in the development of rural water supply in Tanzania is discussed. It is shown that theoretically economic as well as social benefits are supposed to influence investment decisions. In practice, however, choice of projects to be developed are made solely on the basis of social rather than economic factors. Economic potential of such projects are generally not considered. Examples of small scale irrigation, fish farming and village afforestation are discussed. It is concluded that economic potential of rural water supply projects should be considered together with the social benefits during the planning stages of such projects.
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