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The objective of this study is to analyze how integrated policy, institutional, and regulatory interventions (institutional interventions in brief) can help align incentives for more sustainable water supply and sanitation (WSS) service delivery. The context for the study is the enhanced global concern about the sustainability of attempts to increase access to, and improve the quality of, WSS services, as exemplified in the sustainable development goals. Aligning institutional interventions refers to harmonization among the objectives for the sector, agreed principles established through political and social processes, and the organizations and mechanisms that implement actions based on such objectives and principles. This report focuses on the formal policy, institutional, and regulatory interventions available to and or prevalent in the water sector, recognizing the critical importance of the informal conventions that will be key factors in the success of any incentive regime. Previous global initiatives offered a range of promising technical solutions that often proved to be unsustainable. New thinking that draws not only infrastructure economics but also on the understanding of political, behavioral, and institutional economics is needed. This new thinking must be grounded within the differing contextual realities of countries globally and in lessons learned from what has or has not worked with regards to achieving specific objectives.

Drinking Water --- Incentives --- Political Economy --- Public Sector Development --- Public Sector Management and Reform --- Public Sector Reform --- Sustainability --- Water Resource Management --- Water Supply --- Water Supply and Sanitation --- Water Supply and Sanitation Economics --- Water Supply and Sanitation Governance and Institutions

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The sustainable development goal for water and sanitation to ensure availability and sustainable management of water and sanitation for all is a lofty goal. Worldwide, 2.4 billion people remain without access to improved sanitation and nearly 0.7 billion remain without access to improved drinking water sources. Those who have access to water supply and sanitation (WSS) services often must cope with intermittent water supply, sewerage system overflows, and poor customer service. Poor service frequently stems from a vicious cycle of dysfunctional political environments and inefficient practices. Global forces - including climate change, water scarcity, population growth, and rapid urbanization - exacerbate these challenges in providing high-quality, sustainable WSS service delivery. Therefore, WSS utilities require a new approach to planning and sequencing reforms to provide WSS services in a sustainable manner. The utility of the future (UoF) program provides this new approach and was designed in a way that builds on the extensive body of knowledge on utility performance improvement. Chapter one gives introduction. Chapter two defines the UoF concept, the determinants of success, and the analytical basis of the program. Chapter three presents the methodology developed specifically to conduct the diagnostic assessment and determine the utility's desired maturity level. Chapter four presents a 15-step approach to translating the results of the diagnostic assessment into a prioritized and sequenced action plan.

Sanitation and Sewerage --- Small Private Water Supply Providers --- Sustainability --- Sustainable Development Goals --- Town Water Supply and Sanitation --- Urban Water Supply and Sanitation --- Water Pricing and Subsidies --- Water Supply and Sanitation --- Water Supply and Sanitation Governance and Institutions --- Water Utilities

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Tariffs are essential but not the only pathway to cost recovery, addressing affordability, and managing water conservation. To maximize their potential, they must be well designed, complemented by appropriate instruments, adequately regulated, and understood by customers. This report builds upon that one, and provides policy makers with the information needed to design better tariffs to further the economic efficiency, affordability, and environmental sustainability of water supply services. Through a layered and comprehensive analysis of the most prevalent tariff structures, it provides policy makers with specific guidance on pricing water supply services in response to the sector's often-competing goals. This document comprises a synthesis of fifteen unique research papers that, combined, articulate a step-by-step thought process for designing effective tariffs with a view to achieving sustainable development goal (SDG) 6.

Water Conservation --- Water Pricing and Subsidies --- Water Supply --- Water Supply and Sanitation

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Since 2016 the World Bank has explored a wide range of country experiences in delivering better water supply and sanitation services. The analyses led to publication of three new global frameworks for designing water reforms: Policy, Institutional, and Regulatory Incentives, which looks at the broader sector enabling environment; Water Utility Turnaround Framework, which looks at utility-level reforms; and Maximizing Finance for Development, which looks at shifting the financing paradigm to reach the Sustainable Development Goals. The three frameworks-individually and as a compendium-set forth the key principles of a more holistic approach to reform that diverges from the traditional focus on infrastructure economics to a deeper understanding of the behavior of and between sector institutions and of the people within those institutions. Each country-specific reform path will gradually bring the sector to higher degrees of maturity with a strong focus on improving financial sustainability. This summary note integrates the three lines of work-utility reform, sector reform, and sector finance-for readers to understand the critical links between the three spheres. New contributions of this note are a Maturity Matrix for assessing where a country is in its reform process and where it wants to go and a Maturity Ladder that identifies typical actions to move from one stage of maturity to the next. Tools and references are also provided to help governments start on their reform path.

Water Sector Reform --- Water Utilities