assessment, the project aggregates information to the village level—where villages are coded using three categories: a ‘fully functional’ village produces sufficient water for more than 80 percent of the village beneficiaries;<sup>8</sup> a ‘partially functional’ village produces sufficient water for at least 40 percent of beneficiaries; and a ‘non-functional’ village produces water for less than 40 percent of the beneficiaries.

Our dependent variable is a ‘sustainable water system’ at the village level that we identify using the following criteria: (a) _oldest_ water systems from PAMSIMAS Phase I period of 2008−2012; (b) _consistently fully functional villages for the last five consecutive years_ (2014−2018); and (c) never received any _rehabilitation._<sup>9</sup> Figure 1 shows that this subset of villages consisted of around 3,588 schemes or 55 percent of all schemes built in the first project period. In comparison, villages at the opposite end of the distribution, that is, schemes that were effectively abandoned, amounted to 2 percent of PAMSIMAS Phase I schemes.<sup>10</sup> To obtain our independent variables, we supplemented the project’s database with contextual village data from the Indonesia Village Potential Survey (PODES). **Figure 1. Number of Villages Categorized as Fully** _Community participation_ is the **Functional and Not Functional Built in the First Project** recorded number of community **Period** participants during the series of 4000 participatory events held at project inception.<sup>11</sup> _Village_ 3500 _socioeconomic status_ was proxied 3000 by: _village revenue per capita_ ; _tariff collection levels by schemes,_ 2500 constructed as two dummy 2000 variables, ‘more than operational 3588 and maintenance costs’ and ‘less (55%) 1500 than operational and maintenance costs’; and 1000 _proximity to growth centers_ , 121 measured using transport costs 500 2% from the village office to the 0 subdistrict office. We measured Fully Functional for last 5 years Not Functional for last 5 years (2%) _water conditions_ in the village (55%) Functionality using presence of water pollution **Source: World Bank Team 2021**

> 8 Where ‘sufficient’ is a qualitative measure taken by project facilitators through household interviews.

> 9 The project allows one to identify if any rehabilitation funds have been received by the village. In many villages where water systems are not fully functional, it is common for PAMSIMAS to provide rehabilitation funds to enable villages to move from partially or not functional to fully functional status.

> 10 The management information system (MIS) data are likely to be overreported in terms of functionality as the reporting system relied on facilitators who might have the incentives to report positively on scheme conditions, since it reflects upon their work to some degree. To mitigate this effect, we cross-checked the data and made spot calls to a sample of districtand village-level project facilitators. Despite the presence of some outliers, that were discarded and a handful of cases only, the data remained consistent, logical, and within an expected range. For example, the median for training participation and proposal meeting was around 34 to 37. Around 250 of 6,507 villages turned out to have data mistakes and these cases were removed from the analysis.

11 These meetings are meant to introduce the project, raise community awareness of WASH, generate cash and in-kind contributions, and elect user group leaders for post-construction management.

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