This National Monitoring and Evaluation System for Rural Water Supply and Sanitation Sector would be used by Government of India for keeping track of the performance of the different States in implementing the reforms agenda. This would be done through a comprehensive mechanism involving: Computer based MIS, Periodic Reviews, Community Monitoring, and Benchmarking & Performance Index Cards. By using progress (financial, physical and time progress) and process indicators the performance of all the states, districts and block can be monitored so as to get an overview of the inputs, outputs and outcomes of the entire water and sanitation sector. We developed a web based Monitoring and Evaluation System along with a system for benchmarking, generating performance index cards and community monitoring through which the Government of India to monitor the progress on the implementation of reform agenda for the entire Rural Water and Sanitation Sector in the country. The team piloted and operationalised this computerized system in eight districts in Uttar Pradesh, Andhra Pradesh, Tamil Nadu and Maharashtra.