A radical increase in water and sanitation investments is required to finance the Sustainable Development Goals, according to the UN-Water GLAAS report. The World Bank has estimated that to meet Targets 6.1 and 6.2 alone, capital financing would need to triple to US$ 114 billion per annum. Most assessments of water and sanitation finance suggest that there are large funding gaps, while appropriate activities do not receive funding and there is limited effectiveness in achieving outcomes.

CWAS has been working on various aspects of Water and Sanitation finance - policy advocacy, research and studies; tools and capacity building programs and approaches for innovative financing mechanisms. CWAS has carried out various activities for strengthening the financial capacity of local government. The municipal finance assessment discusses improvement in the own revenue incomes of local government. It highlights the significance of predictable and untied financial resources. CWAS has carried out studies to assess gaps in sanitation finance and explored innovative measures to fulfill them. It has looked at different business models of sanitation. Innovative financing approaches have been studied to increase the pool of funds from private players, philanthropic funds, impact investors, in the field of water and sanitation. With this experience and assessment, CWAS has provided policy advocacy to decision-makers at various levels.