The project will support the government's economic recovery program by extending the rehabilitation and upgrading of water supply and sanitation services to towns that have so far not been covered. It will: (a) improve health conditions through better water supply, excreta disposal, waste water management, and public hygiene; (b) alleviate poverty and improve the lot of women; and (c) reduce environmental degradation through better waste management. The project will provide 12 small towns and Jinja with improved and sustainable water supply and sanitation through: (a) the rehabilitation and/or expansion of water supply and sanitation facilities; (b) hygiene education related to water supply and sanitation; (c) community participation in planning, implementation, operation, and maintenance of water supply and sanitation facilities; and (d) institutional strengthening, technical assistance and training for the organizations in the sector.