Simple economic principles tell us thatinvestment begets investment and wealth creates wealth.Investment of money alone, however, is seldom enough totrigger this virtuous cycle, time, effort and substantialplanning are also critical elements. This working papercaptures the story of transformation of Manipur’selectricity distribution sector which has laid thefoundation for a slow but sure transformation of a statethat has seen more than its share of troubled times. Thispaper is about a World Bank-supported Government ofManipur’s initiative to improve and institutionalizeefficient commercial, Operation and Maintenance (O&M),project-related systems and processes, institutionalstrengthening and creation of a robust review and monitoringmechanism for the electricity distribution sector. Theresult is that Manipur is, gradually but steadily, movingforward on the road to socioeconomic development.