To find the optimal delivery model forurban water supply and sanitation (WSS) services, one mustlook beyond ownership structures to the practices anddesigns that support good performance. Consumer cooperativesare often attractive institutional models. This note focuseson a Bolivian cooperative that is one of the most successfulwater cooperatives in Latin America. Successful cooperativesfocus on building internal technical and managerialcapacity. Most are leaders in technical and organizationalinnovation. They monitor operations, standardize processeswhere possible, engage in business planning, and clearlydefine responsibilities. Management uses benchmarking toassess performance gaps. Outsourcing is normally low,because the incentive of secure employment is stronger thanthe potential savings to be had from outsourcing. However,because cooperatives are not bound by public procurementprocedures, contracting can be done quickly when needed.