One of the most critical issues in capacity development for partnerships is municipal leadership and management. Probable key figures include the mayor, the chief executive (town clerk/municipal commissioner etc.), the chief engineer, the public health engineer, the city/town treasurer, or perhaps a senior councillor or head of department in a particular sector, like water. If a partnership arrangement is to succeed, it will require sound management on the part of the municipality (as well as the private sector operator) and thus the nature and characteristics of management within the municipality will strongly influence the partnership formation, implementation and sustainability. A key ingredient of sustainable partnerships is political leadership with the capacity, authority, vision and commitment to change. Political leadership needs to be supported by effective administrative leadership that has the power and status to supervise other senior management and work without political interference.1