The Ugandan Government has been reforming the water and sanitation sector for the past four years. This reform promises much. It is intimately linked to the government’s poverty alleviation plans, and financed largely by debt relief funds. The government has led from the front, building a high level of trust and consensus with its sector development partners and with civil society stakeholders, and initiating progressive and innovative reforms throughout the sector. The reform process has involved a comprehensive assessment of the water and sanitation sector, including studies of the rural and urban sub-sectors, and preparation of action and investment plans. The key strategies to emerge from these assessments include more decentralised delivery of services, increased private-sector participation, and the need for a programmatic, sector-wide approach. Many independent observers agree that it is the most dynamic and successful sector reform process in sub-Saharan Africa, with useful lessons for other countries. Yet, it is still too early to tell how effective the reforms will be in translating the good intentions into tangible improvements in water and sanitation services to benefit poor people.