Most of the water supply systems are managed by water supply users committee. The water supply system of Dhankuta 7, 8, 9 was running 23 years. The overall objective of the study was to assess the financial Performance of Dhankuta 7, 8, 9 Water Supply System. Published report, journals, research paper, article, progress report were reviewed for secondary data as well as key informant interview was done for primary data. The financial performance was analyzed through Water Accounting System, Non-Revenue Water, Average Tariff, Personnel Cost, Unit Production Cost, Operating Ratio, Accounts receivable equivalent, Revenue collection efficiency, Cash balance of five fiscal year and Payback period. The financial performance result shows that there is dissimilarity in tariff on water accounting system, NRW is 62.31%, average tariff is NRs 8.46/m3, personnel cost is 65.88%, unit production cost is NRs 6.41 per 1000 litre, operating ratio is 5.8, accounts receivable equivalent is 1.02 months, revenue collection efficiency is 73.24%, five continuous year is generating positive cash flow and the payback period for construction of reservoirs including O & M cost were 3 year half month, 2 year 7 month and 3 year 4 month for 15% NRW, 0% NRW and for National Average 21.6% NRW respectively.