Drinking water safety is one of the most fundamental and critical responsibilities of public health authorities. There are several challenges facing water resources development in Egypt including upgrading water quality from current degradation. Sanitation service is inadequate in Kafr El-Sheikh's main cities and in the majority of the villages, and constitutes a major environmental concern for the whole Governorate, as it is for all over Egypt. The water quality in the distribution system itself may not be the same as the treated water entering the system. So, protecting and maintaining water distribution systems are crucial for ensuring high quality drinking water. This study is planned to perform a sanitary survey of a municipal water treatment plant and its distribution system in a rural area located in Kafr El-Sheikh Governorate and to examine their water quality as an example for the growing dependence on small water treatment plants in providing quality water to rural areas and alleviae the burden of water borne diseases. The biological and physico-chemical parameters of 100 water samples from a Mutubis plant and its distribution system represented by tap water, and stored water (roof tanks and reservoirs) were examined using standard methods. El Khadra treatment plant is one of the 13 minor plants supplying the rural areas in Mutubis. It supplies 25 Ezbas covering a population of about 160,000 and produces 80 Liters/second. Transport and storage of water are common practice in this area using different unhygienic reservoirs. Moreover, 60% of the studied roof tanks had unsatisfactory sanitary score. Although most of physico-chemical parameters were in compliance with the Egyptian drinking water standards, approximately all biological parameters were violating the recommended limits. 67% of all water samples were contaminated with total coliform counts, but surprisingly  fecal coliforms  were detected only in roof water tanks. Moreover, Coagulase & DNase- positive Staphylococci were isolated from 18.75% of all water samples. Co-incidental occurrence of Cryptosporidium oocysts and Giardia lamblia cysts has been found in 19% of samples, while co-incidental absence of the two parasites has been found in 60% of samples. These results suggest a possibility of inadequate performance of the plant in addition to post-treatment contamination and possible risk of infection from these water supply sources. Regular monitoring and enhancement of microbial and physico-chemical parameters of water quality served by different water treatment plants till reaching the population are recommended to gauge their safety for human consumption.