The report aims to provide greater understanding and awareness on expanding the delivery of water services, conservation of water, increased efficiencies, facilitation of the exchange of water sector information and experience, and improving governance. It is particularly focused on ADB’s overarching goal of poverty reduction. 

In this first guide and sourcebook of its kind dealing with water supplies in developing countries, the author makes some provocative suggestions in separating myths and misconceptions from realities. He analyzes the reasons for poor performance of water utilities, proposes some solutions, and concludes that governance and tariffs are at the core of the problems and any possible solutions. When considering governance, the main message is that transparent government policies must come first, followed by independent regulators.

Civil society participation is also needed to ensure that policies are implemented. When operating water utilities, it is time to develop more autonomy, ensure staff performance is based on incentives, and stop the use of civil servant rules and salaries. Regulation based on policies, not contracts, should be developed for both public- and private-operated utilities. 

In his examination of tariffs, it is suggested that the great inequities, which result in the poor subsidizing the rich, can only be rectified when consumers pay the full cost of water provision and when the money trail no longer runs through governments.

This book is aimed at professionals in the sector, especially newly arrived professionals, who may not be aware of all the problems. 

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