In Uganda, a new model to provide clean and safe water at affordable prices has been developed through an innovative public-private partnership. The initiative, developed in 2003, is a collaborative effort between government, a development partner, a local council and private water operators’, targeting low-income residents in small towns. The government undertakes discovering sites, drilling boreholes, facilitating community land purchase, and subsidizes installments. The private operators organized in the Association of Private Water Operators (APWA) distribute water, check safety and earn the profits. A local community water board, which is also an asset-owner, is involved in setting tariffs and formulating policies.

The APWO initiative has earned its success by the value of organizing its members into an association, as well as by developing and implementing an innovative system of coin-operated water kiosks providing people in urban areas access to clean and safe water within their economic capability. To ensure sustainability of the water supply, APWO has set up an accreditation manual to guarantee that members have experience and qualifications before joining the Association.

Retail outlets for water include water-shop kiosks or individual households’ connection. In 2006 there were almost 19,000 connections linking some 490,000 people in 57 small towns to the system. The operators employ more than 800 people and the annual turnover was $1.2 million.

The improved access to water has inspired the start-up and expansion of many small-scale businesses such as poultry farming, vegetable stalls, food sellers and car-wash businesses.

^{Source: growinginclusivemarkets.org/media/cases/Uganda_APWO_2008.pdf}