Rajasthan is the largest state in India, accounting for 10°/o of total geographical area of the India. The Govt. of Rajasthan (GoR) has committed to developing a long-term urban development policy that stimulates investments in urban infrastructure, and, simultaneously, addresses institutional deficiencies, and targets major reforms in urban governance, therefore GoR has proposed to undertake a sector development program (SDP) with the loan assistance of Asian Development Bank (ADB). The proposed SDP will support the GOR’s reform agenda, and will play a demonstrative role for urban sector operations in India. The reform program will focus on strengthening institutions in water and wastewater sectors and implementing reforms that entail large scale adjustments in policy, institutional, legal,financial, and regulatory framework The policy based loan will provide financial support to the GOR to implement these reforms that will unlock the potential of various stakeholders, including municipal bodies, individual households, and private sector investors. The project loan will support catalytic investments that enhance productivity and leverage finances from various other sources in the project cities. The project will also introduce innovations in water supply and wastewater management, such as 24×7 water supplies, long-term operation and maintenance (OW) embedded construction contracts for non revenue water (NRW) reduction and operational sustainability. The project will invest in water and wastewater sectors in six project cities viz., Pali, Tonk, Hanumangarh, Sri Ganganagar, Jhunjhunu, and Bhihwara, each having a population of more than 100,000.