Water point management committees (WPMC) play a crucial role in rural water supply systems in Ethiopia, particularly in commune areas where access to clean drinking water is limited. A systematic literature review was conducted using databases such as JSTOR, PubMed, and Google Scholar to identify relevant studies on WPMC effectiveness in Ethiopian commune areas. The analysis revealed that while WPMC committees generally operate with a high level of community participation, issues related to funding, maintenance, and accountability hinder their overall effectiveness. Despite challenges, the review underscores the potential for improved water management when WPMC are adequately supported by government agencies and local communities. Policy recommendations include enhancing financial support for communal water projects, strengthening community involvement in decision-making, and improving oversight mechanisms to ensure sustainability.