OECD supports the reform of water supply and sanitation services in countries of Eastern Europe, Caucasus and Central Asia. It essentially works in two areas: strengthening the institutional framework (overcoming the fragmentation of services, revising contractual arrangements between municipalities and operators), supporting the development of robust financial strategies. This work takes the form of National Policy Dialogues, an iterative and participative policy process fuelled by thorough analytical inputs, which aims at making reform happen.

The programme on Water Supply and Sanitation (WSS) in EECCA supports the reform of institutional frameworks, and helps mobilise finance for water supply and sanitations infrastructures and services. It contributes to the water-related Millennium Development Goals in the countries. It increasingly factors in improved water resource management and climate change.

Activities under this Programme are organised in three main components:

1. Monitoring progress towards the water-related MDGs. This activity strengthens EECCA countries' capacity to collect reliable data on the status of water supply and sanitations services. It provides a firm empirical basis to support water sector reform and to monitor progress.
2. Managing the water sector more effectively and efficiently. This activity supports the dissemination of good practices in the management of water supply and sanitation in EECCA. It covers financial planning for WSS in municipalities and utilities, contractual arrangements between municipalities and water utilities (and promotes performance-based contracts), and the possible role of public-private partnerships.
3. Developing and implementing robust financial strategies. The OECD supports development of strategic financial and investment plans for WSS, and facilitates their integration in key policy documents (e.g. country and sector development strategies, medium term expenditure frameworks). This activity takes the form of National Policy Dialogues, an iterative and participative policy process substantiated by robust analytical information, which aims at making reform happen. It ensures that available financial resources are used in the most effective way and facilitates access to additional sources of finance.

Work in these three areas is supported by the EAP Task Force and by the EU Water Initiative EECCA Working Group. These groups gather senior officials involved in the reform of water supply and sanitation services in EECCA, donors, private sector representatives and NGOs. They meet together once a year to monitor the implementation of the work programme and share lessons from ongoing projects.