The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.