In the context of a regional Chilean project (FIC Taltape project, BIP code 30158422-0), a multi-effect distillation (MED) pilot plant has been built and installed in a small community in the north of Chile (Taltape, Arica) in order to supply treated water for agricultural and domestic purposes. The aim of this paper is to assess the techno-economic feasibility of this system for supplying water with the required quality to the population. The characterization of the feed water and the effluents from the MED pilot plant (distillate and brine), obtained during five months of operation, has been firstly performed. Then, the prediction of the operation of the water treatment system with solar energy has been carried out using a typical meteorological year and the design of a static solar field that cover the thermal energy needs of the water treatment plant. The annual simulations of the MED pilot plant operating with solar energy showed that the water needs can be mostly covered using a static solar thermal field with a total area of 113.2 m, which would generate roughly 46% of the total heat required by the water treatment plant. The technical analysis has been completed with an exhaustive economic assessment. The specific water costs have been determined for the MED pilot plant and the scale factor when the productivity is increased up to 5000 m/day has been evaluated. The cost of distillated water produced by the MED plant varied from 15.0 USD$/m for the 10 m/day production capacity to 1.25 USD$/m when this variable is increased to 5000 m/day.