In late 1991, the Regional Economic Development Services Office, East and Southern Africa (REDSO/ESA) began an initiative to identify capital projects in the water and sanitation (W&S) sector, among other, and to suggest possible uses for a special appropriation of $650 million under study by the Congress. The WASH Project was asked to assist and created a Study Team to (a) establish entry and selection criteria for potential projects, (b) identify a number of sector projects underway or planned which meet the entrance criteria, and (c) develop a strategy for marketing the capital projects concept to USAID missions and host countries. The task has been divided into an initial phase, for which this report is the final product, and second, a field-study phase to follow when appropriate.