Financial Innovations for Rural Water Supply in Low-Resource Settings

This report aims to provide an overview of financing or funding mechanisms or applications related to water service that are innovative (i.e., not yet commonplace) and promising (i.e., show potential for benefits exceeding the status quo) in rural areas such as small villages and dispersed settlements. It highlights categories of novel financial concepts that might offer a greater range of options to government agencies, donors, practitioners, and communities who develop and manage rural water supplies. The concepts may have sufficient merit to warrant further exploration within later stages of REAL-Water or other implementation research programs; however, the REAL-Water consortium does not endorse or relatively rank specific topics or service providers. Financial choices should be weighed relative to one’s local setting and context. We summarize the information to evaluate conditions and trends in rural water financial innovation, leading to overarching recommendations.