Rural organic waste is becoming a problem in developing countries due to lack of financial and technological support comparing with situation in urban area. A rural organic waste treatment system was designed utilizing vermicomposting technology to treat organic waste generated in rural area. ROWATS is a theoretical facility to treat rural organic wastes in Shandong Peninsula, China where cow dung and domestic organic waste are disposed freely. Theoretical demonstration shows that ROWATS can treat 1,200 kg of organic wastes daily and produce around 20 tons of vermicast and 800 kg of earthworm body and larvae every month. Products of ROWATS can be used as soil fertilizer, fish bait, and biopharmaceuticals and so on. Sufficient financial support is the most important factor for ROWATS in rural area. Cost-Benefit Analysis and Net Present Value Calculation were made to assess the feasibility of ROWATS. Results showed that ROWATS is a profitable project in terms of 2 years and 5 years. Sensitivity Analysis is also applied to evaluate the impact of different factors variation on ROWATS, of which result shows price and productivity variation of products can affect the profit of ROWATS more significantly comparing with cost changes. Hence, operator should keep products production stable. ROWATS can also improve the environmental and hygienic impacts through reduction of leakages, odor and bacteria and virus infection from flies, mosquitoes and other poisonous species.