To evaluate and reflect thesustainability of services in the region, an overall sectorsustainability assessment was done, taking into account fourmain dimensions: access to services, quality of services,efficiency of services, and financing of services. Each ofthese dimensions is measured through three simple andobjective indicators. For each indicator, best practicevalues are established by looking at the best performers inthe region, and countries closest to those best performersare deemed to have a more mature sector. A more completedescription of the methodology to assess sectorsustainability is included in the Annex of the State of theSector Regional Report from the Danube Water Program. Theoutcomes of this assessment for Hungary’s water sector aredisplayed, which also shows average and best practices inthe Danube region. The Hungarian sector sustainability scoreis 74, which is far above the Danube average sustainabilityof 64, and is among the best practices in the region. Theassessment shows that, on average, the country performs wellin terms of continuity of access to piped water and flushtoilet, collection ratio, nonrevenue water and staffinglevel. The main deficiencies of Hungary’s water sectoridentified through the sector sustainability assessment arethe operating cost ratio, affordability, and investments.The main sector challenges are: achieving full costrecovery; preventing the degradation of assets in the longterm; and preparing for the risks caused by climate change.