, 2005). The reforms since the 1980s have produced savings in water use by demand management, recycling, reuse and the introduction of rising block tariffs. There have also been efficiencies in operational expenditure of some 20%. Other initiatives have seen water-efficient labelling and subsidisation (to the customer) of white goods and the introduction of "water trading". Across the country there is a diverse range of approaches, based on the idea that sustainability comes from resilience and diversity and avoiding "lock-in" to large-scale asset construction and use. There have been very detailed whole-life and sustainability studies (unparalleled globally) and the development of new technologies (e.g. NSW, 2004; Lundie et al., 2005). Notably, there has been the move away from large end-of-pipe systems to more local and on-site management of water and wastewater. Desalination has been seen as a major option and a new plant is under construction to serve Perth. However, objections to the high energy use and concentrated wastes discharged have recently blocked similar plans for a desalination plant to serve Sydney (NSW, 2004; WSAA, 2005). Brazil Brazil is the fifth largest country in the world and as a country of almost continental size its climate and water resources vary. Water scarcity is acute in areas of population concentration and economic importance. With the majority of the population living in urban areas, the Brazilian economy is essentially non-agriculturally oriented; just 5% of the estimated usable cultivated area and 10% of irrigation potential are SO far developed. In urban areas the coverage rate for access to water supply and sanitation services were 90% and 56% in 2000 respectively, while in rural areas they were 18% and 3% respectively. Those percentages are for a population of 170.1 million (USAID, 2002), although this national figure masks wide disparities between regions. Less than 20% of collected wastewater is treated. Coverage rates reflect the predominance of the large urban centres of 