This report aims to highlight some ofthe successful financial management practices adopted byUrban Local Bodies (ULBs) in India when implementingsewerage schemes. The findings are presented in two parts,the first part of the report discusses the approach adoptedfor capital financing of sewerage schemes in the state ofTamil Nadu, and the second part presents the findings from areview of the operational expenditure and revenue generationof various ULBs across the country. The aim of the report isto share successful capital financing and cost recoverypractices adopted by ULBs in India and enable improvement inprovisioning of sewerage systems (only where feasible andeconomically viable, typically only in larger towns with apopulation greater than 50,000) and ensure availability ofsufficient funds for proper Operation and Maintenance(O&M) of the schemes implemented.