Helping the poor gain access to improved water and sanitation services is fundamental for sustainable development. Inadequate or unsafe water supply, and a lack of sanitation services impacts significantly on the health and quality of life of the poor, particularly in rural Indonesia where access is lowest. It also has direct and indirect economic impacts. AusAID's policy outlines the challenges and future direction of Australian aid and the Water Supply and Sanitation (WS&S) sector.

In Indonesia, Australia has been providing assistance in the rural water supply and sanitation (WS&S) sector for more than twenty years. This has included the provision of infrastructure (such as pipes, pumps and other equipment), hygiene education, technical assistance and training, focusing on issues such as community empowerment, sustainability, gender and development and the broader environment. Over one million people have gained access to water supply and sanitation facilities through recently completed AusAID projects in NTB and NTT provinces.

Australia's current approach to the water supply and sanitation sector builds on these substantial investments, and more importantly, on the lessons learned of this experience. Our assistance works at both the policy and community level, recognizing the critical role good policy and effective governance plays in the delivery of water supply and sanitation services.

To support the Government of Indonesia develop a comprehensive framework for rural water supply and sanitation. Australia, with the World Bank, is implementing the Water and Sanitation Policy Formulation and Action Planning Project (WASPOLA). The policy work informs, and is informed by, on the ground activities in the sector.

Australia is also co-financing a large water supply and sanitation project for low income communities with the World Bank, the Water and Sanitation for Low Income Communities II (WSLIC II) Project and plans to develop new bilateral water supply and sanitation activities. These activities will complement Australian assistance at the policy level.