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The article focuses on output-based approaches taken to address problems associated with water services access and work of the Global Partnership on Output-Based Aid. The author explains that output-based aid (OBA) is a way of supporting the delivery of basic services where a policy decision has been made to justify the use of subsidies to replace user fees. The subsidies must be performance-based and must be linked to previously-agreed results. Payment to the service provider under the scheme is withheld until after delivery of the output is performed. Among the possible applications of OBA in the water and sanitation sector include one-off subsidies, transitional subsidies and ongoing subsidies.