The primary objective of this report is to provide practical guidance to World Bank teams advising on the design and implementation of reforms of urban water supply and sanitation (WSS) sectors. The reform of urban WSS sectors is needed to increase access to the infrastructure, improve efficiency of operations, and enhance the reliability, sustainability and affordability of the service. This report proposes a structured methodology for engaging in the reform process and for building a broad consensus on the design of its key components. By presenting what is usually accepted as best practices and under which circumstances they have successfully been implemented, the report also aims at encouraging stakeholders involved in the reform process to