This USAID quarterly report analyzed the success of program activities while at the same time refining and adapting USAID's approach for the third year activities. During the second year USAID 'ring-fenced' program activities and ended low-impact and/or unsustainable activities, while at the same time committing an expanded share of program resources to demonstrated high-impact, high-return activities, such as the unaccounted for water program. The report highlights business planning and strategic human resources development as key organizational tools. Finally the project has identified a package of critical, high-impact interventions to continue and replicate in the third year.