TOR INFRASTRUCTURE degree of autonomy that central government accords the decentralised service providers as well as the maturity of the financial markets. In this respect the OECD countries are well placed. The relatively stable political and economic conditions should facilitate the process of tapping into a range of financial instruments. The efficiency of revenue collection will make an increasing contribution to its performance. In general the one area that requires attention is that of regulatory oversight, which often does not provide the level of scrutiny required to ensure that the performance of water service providers can be benchmarked and provided with the necessary incentives to ensure business efficiency. This is particularly important as most services are delivered in a monopolistic way; competition is not the same as for most other types of service. Water service providers also need to strengthen their ability to engage with governments at a policy level in order to ensure that legal requirements - and, in the case of the European Union, directives - are practical and do not entail excessive costs. The ability to respond to and adopt new technologies and to implement them to best effect will be constrained by other factors, not just the capabilities within the service provider. Much will depend on planning policies and the ability of service providers to interact with and influence new urban and rural landscapes. Thus current business models are likely to become more sustainable and be well placed to cope with the identified trends. In transition economies, affordability and the efficiency of revenue are matters of concern, together with the ratio of revenue to costs. These present problems for the continuing viability of business in those economies. The institutional and regulatory capacity will require strengthening, especially if there is to be a greater reliance on the involvement of the private sector. This appears essential in order to ensure that social and environmental objectives are met