The report presents findings on the state of the water and sanitation sector in India; it describes demand and supply characteristics, key design elements for water and sanitation business models, and the role of microfinance. It concludes that key demand areas for business intervention are: access to water, enhancing water quality and access to sanitation; and argues that private sector interventions can play a critical role in addressing unmet demand through well designed solutions that are fairly priced, scalable and sustainable.