This sourcebook provides guidance on howto improve the involvement of stakeholders, in thesystematic assessment of options in planning exercises forwater, and energy services. Ranging from policy formulation,to project planning, it draws on case studies of programs,and projects that considered the development,rehabilitation, and operation of dams. It is also intendedfor water users and stakeholders involved in dam-relatedplanning processes, and for those involved in policydialogues focused on improvements in participatory planningin the water sector. The benefits of stakeholderinvolvement, and options assessment are enumerated, allconcepts that imply a change in investment patterns forwater and energy development. Discussions then focus on fourprinciples that can be used to guide, and facilitateinvolvement in options assessment: development of supportiveinstruments on which the assessment of options can rely on,e.g., legal and regulatory framework; capacitystrengthening; participatory approach; and, risk assessment.Finally, for the assessment process to operate in a timelymanner, agreed rules, and structured procedures - includinginformation provision and professional facilitation - shouldbe readily available, for later enforcement, if and when needed.