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Water plays a critical role in public health, economic growth, climate resilience, and environmental sustainability. However, in many parts of the world, water and sanitation services remain unreliable, unaffordable, or unsafe. These deficiencies lead to significant human, economic, and environmental costs, especially for poor and vulnerable populations. 

The challenge is compounded by population growth, climate change, urbanization, and inefficiency, , which are placing mounting pressure on already fragile systems. Shifting rainfall patterns, increased frequency of droughts and floods, and worsening pollution are disrupting service delivery and affecting the sustainability of water resources. In some areas, water scarcity is already limiting economic productivity and development. 

Access to safe and reliable water supply remains a challenge in both urban and rural areas. In cities, aging infrastructure, high levels of non-revenue water, and rapid peri-urban expansion often outpace the capacity of utilities to respond. In rural areas, communities frequently depend on poorly maintained systems or informal service arrangements, which are often unreliable or unsafe. Across both contexts, service gaps disproportionately affect women, children, and marginalized populations. A central issue is the need for comprehensive sector reform. Many service providers face inadequate financing, lack of cost recovery, and weak institutional capacity. Few utilities recover even the basic costs of operation and maintenance, and public investment remains far below the levels needed to meet rising demand. 

Sanitation also remains one of the most off-track sectors globally. Nearly half of those lacking basic services live in rural areas, and many still practice open defecation. In urban areas, many residents lack access to toilets that provide complete sanitation services. This contributes to disease, environmental pollution, and lost productivity. Poor sanitation is estimated to cost some countries several percentage points of GDP due to premature deaths, healthcare expenses, and reduced economic output.

Moreover, sanitation systems are a growing source of methane emissions, contributing approximately 5 percent of global totals. At the same time, improved systems for managing fecal sludge and wastewater can offer valuable resources—such as treated water, nutrients, and energy—especially in water-scarce areas. Addressing these challenges is essential for meeting the SDGs, improving equity, and building climate resilience.

Last Updated: Jun 05, 2025

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For general inquiries, please contact:
World Bank Group Water Global Practice