Despite the accepted importance of water supply and sanitation concerns, preliminary analysis of emerging Poverty Strategy Reduction Papers (PRSPs) in sub-Saharan Africa indicated that these concerns have not been adequately reflected. This policy brief aims to contribute to debate on water and poverty reduction, and to strengthening of the water elements in PRSs. It outlines key issues in relation to water and poverty: first, the intended functions of PRSPs, secondly, the scope of the water 'sector' as related to PRSPs, thirdly, the application of sustainable livelihoods principles to national poverty reduction planning and, fourthly, organisational challenges for countries involved in PRS processes.