This paper investigates how newly formed collective action institutions which form a part of a recently introduced rural water supply reform impact on the natural resources management in three communal areas of Namibia. The analysis takes into account effects of the historic lack of decision-making power over natural resources of the rural communities on the management of their newly acquired rights and responsibilities. Moreover, the shift from perceiving water as a free public good to valuing it as an economic good by means of introducing a full cost-recovery facet, calls for an analysis of reform effects on household livelihoods.