wcm.03.2025.568.573

Access to safe drinking water remains a pressing global issue, with over 2.2 billion people still lacking safely managed water services. In Indonesia, rural communities often face disparities in access, relying on decentralized systems with limited sustainability. This study investigates financing mechanisms for community-based rural water utilities (RWS) in Piyungan Subdistrict, Bantul Regency, to identify suitable models that support long-term service sustainability. By employing Analytical Hierarchy Process (AHP) method, this research analyzes social, economic, and environmental criteria and sub-criteria influencing financing preferences from the RWS. Primary data were collected through structured interviews and questionnaires with eight RWS entities meeting specific performance and operational criteria. The results show that social factors, particularly community-based management and participation, are the most influential in sustaining RWS. Among four financing alternatives, community financing emerged as the most preferred (62%), followed by private financing and grants, with debt financing receiving the lowest priority. These findings highlight the critical role of local engagement, institutional capacity, and adaptive financial strategies in ensuring service continuity. The study proposes a phased, blended financing approach, tailored to each stage of RWS development, emphasizing that long-term sustainability must be supported by institutional reforms, improved financial management, and environmental risk governance.