Since its birth in 1985, the Barind Multi-purpose Development Project (BMDP) has become a model of a sustainable rural development project in Bangladesh. The project maintains technical soundness by ensuring a high level of water use efficiency and a minimum well spacing. The project runs on full operating and maintenance cost recovery basis, which is achieved through an innovative prepaid water coupon system and the associated command area development scheme. Its governance structure is democratic and participatory. The project has several environmental enhancement programmes such as water conservation, homestead and social forestry, promotion of integrated pest control, and farmers' training. In addition, it has adopted an integrated planning approach that incorporates extending rural electrification, building rural infrastructure and an array of other support programmes. As a result, the BMDP has emerged as a model of sustainable groundwater-based rural development initiative in Bangladesh.