Cost Recovery and Sustainable Urban Water Service provides an economic framework of analysing how urban water users can be a reliable source of financial arrangement for the sustainable water service. Based on a structured questionnaire survey and some secondary documents this book has identified supply side constraints such as huge non-revenue water, faulty billing and collection procedure and low water tariff as well as demand side constraints comprising low willingness to pay and non-payment culture for cost recovery. One major finding of this study is that most of the water users do not have affordability problem and there is, thus, fair potential to recover the costs of the service from consumers for improved water service in terms of both quality and quantity. But the problem is political leaders are unwilling to charge for their voting purpose though the consumers are willing to pay for better service. Finally, this book can work as a guide for those who are working in the urban water sector and the recommendations made in the book can be replicated to the water utilities of other developing countries facing financial problem in extending the service.