Within the framework of the regional EU Inco-Med CORETECH research project, this paper entails the preliminary outcome of the disk study on development of the most suitable onsite and community onsite sanitation and treatment system. A literature study conducted on the present status of wastewater management facilities in the West Bank revealed that, small Palestinian rural communities, in which about 60% of the total population in Palestine are living, face a variety of environmental infrastructure and public health issues. One of the urgent issues is the provision of safe drinking water and reliable wastewater collection and treatment facilities. Great emphases have been made on the historical development, key issues for wastewater management policies and strategies to be implemented. Also lessons and recommendations gained from pilot projects and case studies implemented by non-governmental organizations (NGOs), like the Palestinian Hydrology Group (PHG), Palestinian Agricultural Relief Committees (PARC) are presented. Several rural sanitation projects were assessed and small onsite sewage treatment plants were visited and evaluated, personal contacts to many NGOs and review of published reports of Palestinian institutions, donors and funding agencies, and UNDP and DFID were made. It was found that major sanitation problems are due to the weak economy and low income, low level of technical operating expertise and very limited access to the existing advance wastewater treatment technologies. Moreover, the absence of public awareness, lack of environmental education and market competition exacerbate the limited social acceptance of the beneficiaries in small rural areas for the idea of reusing the treated effluent for agricultural purposes. A review of recent implemented onsite rural sanitation systems reviled that non-governmental organizations like the PHG, PARC and ANERA act as a catalyst to promote sustainable sanitation facilities in the poor rural Palestine. To introduce and enhance the application of UASB technology on a wide scale in rural Palestine, several M.Sc. research students within the CORETECH project, being implemented at Birzeit University, will investigate the process performance and unit design parameters of using the modified UASB technology for black and domestic wastewaters. Recent research findings (Zimmo, et al., 2000 and 2001) showed that naturally based technologies (duck weed and algal ponds) are economically sustainable and environmentally feasible post treatment options.