This study estimates the nonmonetary,financial, and economic costs of poor sanitation in theareas of health, drinking water, and domestic water, as wellas user preference and welfare. Financial costs refer to thedirect financial expense paid in monetary terms by someone,such as changes in household and government spending andreal income losses for households. Nonmonetary costs consistof both longer-term financial impacts (such as less educatedchildren, fewer children, and loss of working people due topremature death or relevant morbidity), and nonfinancialimplications, such as the value of loss of life, time-use ofadults and children, and intangible impacts. Bangladesh hasmade inadequate progress toward the sanitation-relatedmillennium development goal (MDG) target. The country'sfinancial commitment and political priority for sanitationalso has shown inadequate progress (Water-Aid, 2008).Therefore, to mitigate the adverse effects of poorsanitation and hygiene practices, intervention is necessary.The aim of this study is to provide concrete evidence of theimpact poor sanitation has on the population and theenvironment and, consequently, on the economy. This studyprovides estimates of the current and long-term effects ofpoor sanitation, which cover not only the negative impactsof poor sanitation but also the potential gains thatdifferent sanitation interventions could achieve. Policymakers and water and sanitation advocacy organizations arethe target audience of this study.