The importance of safe drinking water on human life needs no emphasis. In view of this, several legislations, guidelines and policies have been developed at international and national level to improve the delivery of safe drinking water in the world. However, many studies have found that most rural areas of the world whose water is supplied by private investors have a challenge in accessing safe drinking water. Therefore, this study was aimed at assessing the role of the private sector in delivering drinking water in rural areas, case study of the Anglican Diocese of the Upper Shire Water Scheme at Malosa in Zomba District, Malawi. The study took a mixed research design approach. A total of 103 participants (42 males and 61 females) were interviewed in order to obtain their perception on the safety, acceptability and management of water supplied by the water scheme. A water quality test on bacteriology was conducted on water samples collected from the water scheme's distribution system following standard procedures to validate peoples‟ perception on the safety of the water. The study findings show that 87% of the study participants were not satisfied with the colour of the water supplied by the institution. Results on microbial analysis indicated microbial contamination on the water samples collected before chlorination. Interviews with the key informants also show that the water scheme was facing some operational and management challenges and lack of monitoring by relevant authorities due to policy issues. The results are in line with findings from other studies. This study therefore, recommends the revision of the Water Resources Bill of 2012, currently in force, to empower District Water Offices to monitor the operations of privately owned rural water schemes.