This handbook describes a set of tools small communities can use to reduce the cost of drinking water and wastewater projects. It is intended as a desktop reference for two primary audiences: (1) local residents (elected officials, plant operators, and concerned citizens) for whom the book provides detailed advice on how to do conduct a project at an affordable price (termed "self-help"); and (2) state and federal officials responsible for waste and wastewater programs who can use the book for guidance on a new way to facilitate community projects. The book is divided into five parts. Part 1 focuses on the state role in community self-help. Part 2 sets forth the criteria that should be present in a community in order for self-help to work. Part 3 looks at specific strategies for practicing self-help. Part 4 situates self-help within a larger context and includes a discussion of the nature and depth of the infrastructure problem in small towns. Part 5 consists of appendices that provide illustrations of key points and tools for broader applicability. Contains 32 references. (LZ)