Automated water vending is a challenging concept. It involves payment validation, appropriate dispensing and remote accounting and control. It becomes even more complicated and difficult when such an activity has to be done in an rural environment where users have limited exposure to automation and communication infrastructure is below par. We have successfully demonstrated how all these problems can be overcome and how automatic water vending can be a reality in such environments. Starting with vending purified water in just one village we are now nearing 150 villages and have proven successful working of all the systems, round-the-clock, for more than a year.