This was a pilot project for Bulgaria and was designed to solve the problem with the lack of sufficient water resources in populated areas. The construction of installations for collecting and utilization of rainwater in the Orphanage House in Blagoevgrad has the goal to provide sufficient water for sanitary purposes in the orphanage and to reduce the expenses for drinking water. The project has a demonstration and educational purpose – to demonstrate a system, providing sufficient water for a large public building. Although the systems for rainwater harvesting and utilization have been constructed for a long time in the developed European countries and are sold in the stores, in Bulgaria they are not very popular. The construction of this system serves as a basis for education for the children in the orphanage as well as for pupils from other schools in the city, in order to familiarize them with the basic principles of water resource management and to create habits for water resource saving and management. On the basis of systemic data about the quantity of rain in the region, an installation for rainwater harvesting and utilization from the roof of the Orphanage House in Blagoevgrad has been designed and constructed. The system was constructed from standard modules and junctions that are sold in Bulgaria. The water was used for sanitary purposes in the orphanage – flushing the toilets and cleaning the floor of the building. The analyses indicate a high quality of the filtered rainwater – equivalent to the quality of water for 1st category consumers. For the full elimination of the health risk, a separate pipe system for the rainwater has been constructed in the building. The installation also serves for education and demonstrates an innovative technological approach, environmental-friendly sanitation policy and a method for local water resource management.