One of the Millennium Development Goals is expansion of access to safe and reliable water sources to all by 2015. Rural areas in Nigeria are characterized with lack of access to potable water which has contributed adversely to public health and welfare of the rural dwellers. Concerted efforts have been made by government to improve access to safe drinking water. This study was therefore carried out to examine willingness to pay for potable water by rural households. A multistage sampling method was used to obtain a sample size of 107 respondents for the study. Descriptive statistics and logistic regression model were used to analyze the data. The respondents were mainly male, married with mean household size of four and mean age of 44 years showing that a good proportion of the sampled respondents were in their economic active age. Community well and streams were the most common water sources while none of the households had access to piped water. The Mean Willingness to Pay (MWTP) for water from safe sources was found to be N150 (0.91$)/20litres. Results also revealed that educational status, household monthly income, quality of water, reliability of water, connection charges, and distance to water source are the significant factors that influence the probability of households' willingness to pay for potable water. Therefore, in designing improved water supply system and services for rural areas, water service providers must ensure reliable service, improved quality water and proximity to the source.