Bhutan needs to improve its water and sanitation infrastructure, particularly in urban areas. Research shows that urban households are willing to pay approximately six percent of their monthly household incomes for a sewage connection and the same percentage for piped water. On a monthly basis, on average, an urban household is willing to pay Nu 362 (USD 5.7) for piped water inside the house and Nu 348 (USD 5.5) for a formal sewage connection, while it currently pays a combined charge of Nu 78 (USD 1.2). Thus, there is scope for municipalities in Bhutan to invest in water and sanitation infrastructure, cover necessary costs, and, simultaneously, increase revenues.