Background Figures for Bosnia and Herzegovina (BiH) indicate that on average about 500 litres per capita per day (l/c/d) of water are used. This figure is extremely high and above the EU average. Much of the 500 litres, however, is actually lost since actual water consumption is estimated at 150-200l/c/d. These figures suggest that the use of water is very ineffective and that water management is poor. Technical assistance is needed in issues such as water management, water consumption, wastewater treatment. Institutional and legal assistance are also needed on tariffs, cost recovery, legal representation etc. Objectives The project aimed to improve the sustainable use of water resources in BiH through national sector partnership and to harmonise current BiH water management practices with EU best practices. The purpose of the project was to establish and strengthen the BiH Water Works Association (BHWWA) as an association of water works consultants, engineers, decision-makers and other field stakeholders. The project also aimed to determine priority actions and support the development of a Strategic Action Plan in order to ensure the self-sustainability of the BHWWA. The specific objectives were to: • Raise awareness about the existence and importance of BHWWA and its role in national sector partnership; • Establish and register BHWWA as a non-profit organisation; • Strengthen the BHWWA office in its daily tasks; • Develop the BHWWA Strategic Action Plan (SAP), the Priority Action Plan and the Long-term Financial Sustainability Plan (FSP); and • Implement priority and demonstration actions to support institutional strengthening, promote BHWWA membership and achieve financial sustainability. Results The project has successfully established a Bosnia and Herzegovina Water Works Association (BHWWA) as a non-profit association of water utilities, consultants, engineers, decision-makers and other stakeholders. The association is organised around principles of good water governance, similar to its counterpart associations in EU countries. The BHWWA covers the entire territory of B&H, and harmonisation of regulations and legislation between the two entities was one of the priorities of the water sector of BiH. In the two years following the project, the BHWWA has become an important player in the water sector in BiH. It is providing assistance to water utilities through awareness raising, technical assistance, legal assistance and international cooperation.The EU Water Framework Directive and other international water policies are being introduced through training activities. The enhanced awareness is illustrated by the interest of more than 30 water utilities in the Austrian Danube Water Cooperation for development and improvement of their water supply systems. The BHWWA also provides technical assistance in overcoming major operational problems, such as shortage of technical and management knowledge in management of water works, through seminars, a website, operating manuals and continuous communication among members. Areas covered included the introduction of best-management practices and ISO Standards, application of GIS, technical audits of water works systems and tariff setting for the water works services. Legal assistance offered by BHWWA has achieved improvements to the legal framework with regards to the water sector. The BHWWA has already become a recognised institution in the process of proposing and enactment of laws. The association also represents the BiH water sector through international cooperation by establishing regional cooperation with associations from Albania, Serbia and Montenegro, Kosovo, Croatia and Germany. Such initiatives have led to a CARDS project for the harmonisation of technical regulations related to water supply and sewage with technical regulations of the EU. The project has reduced water losses through improved managerial skills, enhanced cost recovery in water works and an increased awareness of the environmental aspects of water use. The project aimed to achieve long-term sustainability through the preparation of a Financial Sustainability Plan.