This primer is concerned with energy useand efficiency of network-based water supply and wastewatertreatment in urban areas. It focuses on the supply side ofthe municipal water cycle, including the extraction,treatment, and distribution of water, and collection andtreatment of wastewater-activities which are directlymanaged by Water and Wastewater Utilities (WWUs). The mainchallenges to scaling up Energy Efficiency (EE) in municipalwater and wastewater services stem from sector governanceissues, knowledge gaps, and financing hurdles. Utilitygovernance affects the overall performance of individualWWUs and influences decision making, incentives and actionsfor energy management. This is likely the most significantbarrier to WWU EE in many developing countries. Addressingknowledge gaps requires efforts to systematize datacollection, training, and capacity building at utilities,supported by local and national governments. Financinghurdles can be reduced by introducing dedicated EE funds toaddress large but disaggregated investment needs and bypromoting third-party financing through energy/water savingsperformance contracts. This primer is part of EnergyEfficient Cities Initiative's (EECI's) knowledgeclearinghouse function to inform World Bank (WB) staffworking in urban water supply and wastewater management, aswell as in energy, about the opportunities and goodpractices for improving EE and reducing energy cost inmunicipal WWUs.