Russia is going through a complicated period of transforming its economy with a focus on the expansion of private sector activity. This includes reforms in the field of municipal water supply and wastewater disposal. This report presents an analysis of the condition of the municipal water supply and wastewater systems in Russia in the early part of the 21st Century and tries to provide answers to the eternal questions: what are the causes of problems faced and what needs to be done to solve them? The objectives of the reform of Russia's Vodokanals are described, along with the regulatory framework governing the sector, including the way tariffs are regulated. The current condition of water and wastewater infrastructure is assessed. The most prominent examples of private sector involvement to date are examined. The report concludes with a short-range forecase of developments. The report will be of interest to those wanting to understand the transformation processes taking place in Russia in the field of municipal water supply and wastewater disposal. It will also be of value to potential investors who are looking to take advantage of the favourable investment climate created recently in the country and who are considering possible long-term investment in the management, reconstruction and development of municipal water-related infrastructure.
