The concept of participation in rural development has been evolutionary for the past two decades with those involved, such as development agencies and governments, particularly in rural water supply, re-evaluating their active role. The move towards effective community participation has encouraged a shift from the traditional top-down to a bottom-up approach whereby there is a decentralisation of unevenly distributed resources and power to empower a community and allow mobility of 'people participation'. The Molinos water project is the first large-scale development project of its kind introduced into the village of Molinos in an under-developed area of Chile, where there has been no tradition of people participation. The project objective was to implement a low technology, low budget water treatment plant to the village of Molinos. Various aspects have hindered the continued development of the project including both technical and financial. In terms of people participation, the initial approach used was the top-down approach. There was a failure to fully integrate the community or inform the community in a formal manner about the project and consult them regarding key project issues. This case study illustrates that the lack of comprehensive consultation and the low level of participation of the community on the participatory scale does not achieve much in terms of people-centred benefits. For governance at the local level to be effective, participation should be inclusive and communicative so as to enhance transparency throughout the project lifetime.
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