Financing Sources - Introduction

The main financing sources to recover the costs of water, sanitation and hygiene service delivery are (a combination of) taxes levied by national governments, transfers made by development partners and tariffs paid by users of a services (see figure 1). These financing sources in the water and sanitation sector are also known as the three Ts (e.g. taxes, transfers and tariffs).

Figure 1. Financing sources and costs for sustainable service deliver. Note that the figure is not meant to represent relative magnitude of costs.

Source: IRC and WSUP, 2012, page 7