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Millions of urban dwellers, especially the poor, lack adequate access to safe drinking water and sanitation. Improving services significantly will, in most cases, require more efficient operation of water utilities and investments in rehabilitating and extending supply systems. Many central and local governments are turning to the private sector to help address these needs, but steps must be taken to ensure that the private sector arrangements fit local circumstances, that the regulatory environment is suitable, and that the reforms respond to the concerns of those affected. This set of handsomely designed toolkits, three volumes in all, have been prepared to transmit the experience gained elsewhere and the lessons this experience offers on what can make or break the process of private sector involvement. The toolkits are meant to support, not substitute for, independent advice from experienced professional firms. Toolkit 1, Selecting an Option for Private Sector Participation, sets out the issues that a government must work through (legal and regulatory arrangements, tariffs and subsidies, political support) to identify which kind of private sector arrangement best meets the specific needs and circumstances. Toolkit 2, Designing and Implementing an Option for Private Sector Participation, focuses on how governments move from identifying their preferred option to implementing it. Toolkit 3, What a Private Sector Participation Arrangement Should Cover, concentrates on the issues and risks that governments must address in the resulting contractual arrangement. Each set of toolkits is accompanied by an introductory brochure that answers questions policymakers at the local and national levels alike may ask themselves when considering whether and how to involve the private sector in the provision of water and sanitation services.