Improved access to clean water is important in improving health, relieving drudgery for women, and in designing and implementing effective poverty alleviation strategies. However, few empirical studies have had the objective of establishing the link between community participation and management, and sustainability of community based water utility projects. In addition, there is no consensus on the analytical techniques to use for sustainability assessment. This paper uses data collected from community water utility projects in two regions in Central Tanzania to demonstrate the use of canonical correlation analysis in sustainability assessment. The advantage of canonical correlation analysis is that the results are invariant with respect to the basis in which the variables are transformed. In addition, the analytical technique leads itself to identifying what management issues need to be addressed at the project level, to improve both community participation and management, and hence sustainability of such types of projects.