Uganda's national water utility hasbecome known for its successful turnaround under publicmanagement. Less well known is that this success owes muchto the introduction of private-sector-like practices tomotivate employees. Following a mixed experience with twoshort-term management contracts in Kampala, theutility's management introduced an innovative conceptof internal delegation, inspired by public-privatepartnership contracts. Local managers establish privatepartnerships to operate systems under contract with theutility, with part of their pay depending on performance.The experience offers interesting lessons for those involvedin reforming urban water utilities in developing countries.