The primary objectives of the Second Rural Water Supply and Sanitation Project for Nepal are to: (1) improve rural water supply and sanitation sector institutional performance and mainstream the "Fund Board" (Rural Water Supply and Sanitation Fund Development Board) approach in the Government's system, and (2) support communities to form inclusive local water supply and sanitation user groups that can plan, implement, and operate drinking water and sanitation infrastructure that delivers sustainable health, hygiene, and productivity benefits to rural households. Component one supports strengthening and operation of the Rural Water Supply and Sanitation Fund Development Board. Component two finances selection and construction of water supply and environmental sanitation schemes. Component three supports institutional development studies. This last component supports technical assistance to the Ministry of Physical Planning and Works to carry out sector assessment and monitoring, as well as undertake special studies. Special studies will include low-cost technology options, water quality control at source, health impact studies, studies examining the inclusion of poor families, janjati, dalits and gender aspects in the delivery of water supply and sanitation services, measuring changes in overall community development, health hygiene and sanitation practices, participation of school management committees and the students themselves in school health, hygiene, and sanitation related matters).