While recognizing that the urban sector is a State subject (administered by State governments), and water and sanitation are local issues with predominantly local solutions, the Government of India (GoI) believes it has an important and useful role to play in facilitating reforms in urban water supply and sanitation services. This is because:

• Access to clean, safe and healthy water is essential for economic growth and poverty reduction;
• Failure to improve services can have sub-regional and national implications, such as direct or contingent impact on the fiscal situation, and outbreaks of diseases which impact reputation, investment and tourism; 
• The private sector can play a positive and long-lasting role; and 
• The GoI can disseminate lessons from other sectors, countries and parts of India,  and mobilize technical assistance and reform-linked financial support. 

In addition to these guidelines, the MoUD&PA has also provided important guidance for the municipal accounting framework and a model municipal act. 

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