Water sector reforms have led to improved institutional framework but there are challenges in implementing sustainable service partly due to political risk-taking by government and partly due to inadequate financial resources to operate and maintain
the water supply systems. As a result, fundamental requirement for success such as transparency, accountability, customer orientation, competition (quasi) and efficient operation and maintenance are not yet adequately in place to drive sector performance.

The key characteristics of the water sector and its implications on the role of government as well as the separation of functions; service delivery, economic and water resources regulation are addressed with some recommendations on some promising options for addressing these challenges.

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