In a cross-sectional survey in one rural and one suburban village each in Thailand and Laos the relationship between Aedes aegypti production and Escherichia coli contamination in household water storage containers was investigated. Entomological and microbiological surveys were conducted in 250 and 239 houses in Thailand and Laos, respectively. Entomological indices across all four villages were high, indicating a high risk for dengue transmission. Significantly more Ae. aegypti pupae were produced in containers contaminated with E. coli as compared to those that were not, with the odds of Ae. aegypti infested containers being contaminated with E. coli ranging from two to five. The level of E. coli contamination varied across container classes but contamination levels were not significantly associated with the number of pupae produced. We conclude that the observed relationship between Ae. aegypti production and presence of E. coli in household water storage containers suggests a causal relationship between dengue and diarrheal disease at these sites. How this relationship can be exploited for the combined and cost-effective control of dengue and diarrheal diseases requires further research.