A community perception and willingness to pay study was undertaken to support the financial feasibility and institutional analysis for WATSAN infrastructure planning for 12 towns in Uttrakhand. The study noted higher incidence of poverty in towns in the plains as compared with hill towns. High income residents had paid household connections albeit with irregular supplies, insufficient quantities (les than the proposed norms) and at low pressure. During summer, water availability reduced drastically. However, water quality was largely acceptable. Poor people were served through community stand posts with mostly inadequate, unreliable, short timing supply, and had to walk up to half a kilometer to fetch water. Defecation in the open was rare among the better off, although lack of water forced some to use the open. Community toilets or open defecation were options for the poor. Common problems of toilets related to regular cleanliness and maintenance, lack of water and power and distance from homes. Due to the absence of a proper sewerage system in most towns except Rishikesh, toilets either opened into drainage canals or septic tanks. Rishikesh had the largest number of households (71%) connected to sewerage as the city had a proper drainage system in place as per ULB. People expressed willingness to pay up to Rs100 for water supply and for a one-time user connection, albeit in small sums. A progressive menu of options was recommended for poor to be incrementally connected to equitable level of services.