al Drinking Water Mission and the Ministry of Urban Development and Poverty Alleviation. Urban infrastructure facilities are provided by local urban bodies that depend on central and state governments for grants and loans. Other problems are the negligible user charges, corruption, high staffing levels and an enormous backlog of deferred maintenance (Brisco, 2005). Budgetary allocations to the water sector are falling, as are payments by users. The situation has to an extent been alleviated by the "era of individual coping strategies". For rural populations it is the tube well that taps local aquifers; for the middle classes and industry there are other INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE self-provision strategies. For the urban poor there is only the water vendor. Progress in introducing sectoral reforms after 1999 remains slow, though there has been some localised progress (Saleth and Dinar, 1999). Central Government has identified the need to reform the way infrastructure development is governed if it is to meet the target of 100% coverage of the urban population with water supply facilities and 75% with sewage and sanitation by 2007. The funds required for this purpose are estimated at INR 53 000 crore, the majority of which would come from the states (http://indiabudget.nic.in). How this translates down to states and to local bodies remains to be seen. Following reviews by the World Bank and the government of India, interest in privatisation has been increasing and some states have created autonomous corporations to mobilise private funding. Over the past ten years the World Bank has been working with the Ministry of Urban Development to promote private sector participation. Success has been somewhat mixed, with many proposals failing and 25 large and small contracts being abandoned after starting. A recent report noted some successes, however (UNRISD, 20