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During the past several decades, effective strategies have been developed for delivering affordable sanitation services to people living in urban areas in developing countries. The unhealthy conditions of those lacking sanitation cannot be ignored because sanitation-related diseases and polluted water sources often have devastating social, economic, and environmental effects on all urban residents. Successful approaches include (i) paying attention to the preferences of users and providing users with the services that they want and for which they are willing to pay; (ii) unbundling sanitation services into discrete parts (such as household services and trunk services) and providing these components in the sequence that the users prefer; and (iii) involving the creative use of both non-formal institutions and formal institutions in co-producing services, with each institution providing that part of the service for which it has a comparative advantage.
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