The  understanding  of  water  supply  situation  at  various  levels  calls  for  a  comprehensive investigation into the components that affect the supply of this resource if sustainable access  will  be  realized.  The  investigation  carried  out applies  W ater  Poverty  index method to analyze the status of water supply situation in the rural areas of Oyo State, Nigeria. WPI revealed that both surface and subsurface water resources are generally available  and  reliable  with  scores ranging  from  2.72  in  Itesiwaju  LGA  and  15.93  in Akinyele  LGA.  However ,  access  component  ranges  fr om  2.72  in Itesiwaju  LGA  and 14.29  in  Atisbo  LGA;  Capacity  component  scores  ranges  between  1.33  in  Surulere  LGA and 6.47 in Ogo-Oluwa LGA; W ater Use Component ranges between 0.80 in Surulere LGA  and  7.94  in  Atisbo  LGA  and Environment  Component  score  ranges  between  0.00  in both  Oyo  East  and  Lagelu  LGAs  and,  3.18  in  Atisbo  LGA, all  out  of  the  highest obtainable score of 20 for each component. The overall Index ranges between 1.29 in Itesiwaju LGA and 47.89 in  Atisbo LGA. This implies a generally water poor situation despite the evidence of resource availability . WPI tool revealed those areas that need prompt  attention  in  order  to  achieve  a  sustainable  water  supply.

KEY  WORDS:  Water  Poverty  Index;  Rural  Areas;  Sustainability;  W ater  Resources; Oyo  State