The scheme aims scale up the reform principles in the rural water supply and sanitation sector to achieve the Millennium Development Goal (MDG) of suitable access to drinking water and basic sanitation. The project aims to support the state's sector reform process by establishing and enhancing its institutional capacity to implement, manage, sustain the sector development program.

Under this project, rural local governments in partnership with rural communities, will plan, design, construct, operate, and maintain their water supply and sanitation schemes. The project will upgrade areas with no or partial coverage of water supply to full coverage with sustainable service, benefiting at least 1.2 million people, or 20% of the rural population, improve sanitation in about 30% of rural communities, provide Total Sanitation Cover to all Gram Panchayats including schools and community places. The project will generate sustainable access to water and sanitation services, which in turn will help reduce water-borne diseases in underserved rural areas.

The Panchayats of Uttarakhand.