The book is based on a study which has been commissioned by the European Investment Bank to addresses the need to improve policies and institutional mechanisms to select bankable investment projects for water supply in rural areas and wastewater in compliance with the relevant EU Directives in about 84 municipalities of the Republic of Macedonia. The recommended strategy for financing feasible water supply and sanitation investments provide the basis for developing a project evaluation methodology that encompass technical, financial and environmental criteria, including compliance with EU Directives. Possible projects resulting from the survey among the 84 municipalities were to be screened through a developed methodology of project selection criteria and scoring matrix system. A demand driven approach is considered as the best way to put municipalities in the driving seat and compete with projects that meet the preparation and implementation of the projects in accordance with the EIB project sustainability requirements, and in a timely manner.