Small water utilities with fewer than5,000 connections comprise over 90 percent of the knownnetwork systems in urban areas in the Philippines. Bydeveloping their capacity to improve their performance, theyhave more chances of being creditworthy and bankable so thatthey can finance investments for expansion and serviceimprovements. The Small Water Utilities Improvement andFinancing (SWIF) Project of the World Bank's Water andSanitation Program (WSP) in the Philippines worked with 11small water utilities to help them do strategic planning andprepare performance improvement plans and to prepare costrecovery tariffs as well as project proposals that can besubmitted to a bank. They can easily reorganize theirinvestment plans to suit available financing. This smartlesson shares lessons learned by the project team in helpingthese small water utilities become bankable, includingmaking sure everyone gets training, ring-fencing theaccounts of water operations, and helping close the gapbetween what utilities want and what banks want.