Funding is essential to translate the WSI process into activities that provide tangible benefits to water users. Funding must be identified and secured early to:
Financing can come from government taxes, user tariffs, international aid transfers and private sector investments. The type of water security activity often determines the type of financing that will be most readily available.
Engaging potential financers early in the WSI process is essential because:
Furthermore, as water stakeholders realize the expected benefits of water security activities, they may be able to attract or set up additional financing sources.
Charging for water services—even water management services such as monitoring—allocates water costs to water users. It also changes perceptions such as “water is or should be free” and behaviors leading to waste and pollution.