In the last two years, various countries in Latin America have begun monitoring rural water supply service delivery, largely driven by two objectives: 1) to establish rural water inventories for investment planning, and 2) to better target post-construction support. For such monitoring systems not to face sustainability challenges, clear insti- tutional and nancial arrangements must be established. The International Water and Sanitation Centre (IRC), the Inter-American Development Bank (IDB), and the Spanish Cooperation Agency for International Development (AE- CID) have been supporting the design and implementation of such monitoring systems in El Salvador, Honduras and Paraguay. In coordination with local sector agencies, a methodology to de ne an institutional framework for monitoring was developed and tested. This paper provides an overview of the approach, including examples and cost estimates from the three countries.