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This article summarises initial findings of a study to explore the potential of providing micro-financing for low-income households wishing to invest in improved water supply and sanitation services. Through in-depth interviews with more than 800 households in the city of Hyderabad in India, we conclude that, even if provided with market (not concessional) rates of financing, a substantial proportion of poor households would invest in water and sewer network connections.
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Davis et al. (2008) studied this question.
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