This toolkit for urban water supply developed for Maharastra, India. The eight chapters cover the background to the toolkit, its structure, the users of the toolkit and guidelines to the toolkit.It proceeds to providing an overview of PPP, the benefits that it shall bring to the water supply situation in the city and the trend of PPP in the water sector. Chapter 3 provides an overview of the steps involved in the identification of a suitable PPP structure and the processes involved in its implementation. Chapter 4 presents the preparatory work to be done by a ULB for the identification of a PPP structure including problem definition, project identification and assessment and prioritisation of the key problem areas. Chapter 5 provides details of the method of undertaking a viability assessment of the projects identified on a PPP basis. This includes details on the process of carrying about the financial assessment for determining the feasibility of the project and the scope for Viability Gap Funding to add to the viability of a project. Chapter 6 outlines how a ULB should decide whether it should opt for public funding or PPP. It presents how a ULB should scope the work for PPP, assess if the project is financially viable and decide whether to implement it through PPP or otherwise. Chapter 7 presents the identification and allocation of risks amongst the public entity and the private operator/developer and selection of a suitable contract structure. Chapter 8 presents the procurement process to be followed if the ULB decides to implement the project on a PPP basis.