Several challenges in service delivery confront municipal water supply in India. This is driven by a number of issues, including rising demand due to larger and denser urban populations. The levels of investment in the water sector are lagging the required demands; coupled with inefficiencies and institutional issues, these will likely impact unsustainable exploitation of water resources. International experience suggests that public–private partnerships (PPPs) can meet these challenges in the sector, both through investments and particularly through efficiencies in performance parameters.