This article addresses the tension between subsidies and the sustainability of rural water supply systems based on research carried out in Minas Gerais, Brazil, on the Brazilian rainwater harvesting Programme for One Million Rural Cisterns (P1MC). The fieldwork included a survey of 623 beneficiary households and 47 in-depth interviews, as well as a workshop with P1MC managers. It is concluded that heavy government subsidies for the construction of the cisterns resulted in some alienation of users. It is highlighted that in the cases studied, strong government participation is critical to expanding access to water.