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Since social capital permeated the conceptualization of "community" in the early 1990s, evidence has mounted as to its significance for water and sanitation projects. But understanding how to apply knowledge of social capital towards sustainable development has lagged far behind. To address this gap, we combined insights from household surveys, semi-structured interviews, performance evaluations, and extensive field observations into comparative case narratives of six community-managed drinking water treatment plants built through an NGO initiative in Honduras. The aim was to not only measure social capital but to use those measurements as a framework to understand how social capital affected each project. Our findings suggest that social capital amplified or hindered plant performance through three key mediating mechanisms: Resource mobilization; resilience to change and conflict; and participation and communication. Plant performance, in turn, influenced community social capital by affecting the relationship between the NGO and community and community residents' trust in the project. These mechanisms constitute a feedback loop by which relative levels of social capital and water system operation are mutually reinforcing. Drawing on our results, we propose four accessible proxies and four initial strategies practitioners can use to operationalize social capital scholarship and identify and disrupt negative patterns during the project cycle. We encourage additional translational research to leverage the ever-growing knowledge of social capital into improved outcomes in practice. [Display omitted] • Explores impact of social capital on six water treatment plants in rural Honduras. • Social capital and performance are mutually reinforcing through feedback loops. • Identifies five mechanisms mediating this relationship. • Proposes four accessible proxy indicators for low-cost social capital measurement. • Proposes four strategies for operationalizing social capital scholarship. [ABSTRACT FROM AUTHOR]