The purpose of this working paper, a think piece on governance in water services, is twofold. First, it aims to provide a basis for discussion and debate as to how the Department for International Development (DFID) should improve its approach to governance in water services.  Second, it aims to develop a more comprehensive and structured approach to the analysis and the development of governance in water services by applying DFID’s current governance thinking at the sector level. The paper therefore draws on internal DFID governance thinking, terminology and approaches and is, in this first version, targeted primarily at a DFID audience interested in governance, basic services and water.