Drinking water supply problem for the population of the Republic of Moldova is one of the most stringent social issues for the country. Lack of clean drinking water and sewage is the main cause of disease and accounts for up to 20% of morbidity of country’s population. Moreover, the potable water and sewage crisis in Moldova hampers the economic development, while public costs for providing the population with potable water and sewage reach 0.5% from GDP. The need for improving the drinking water supply and sewage systems in the urban and rural areas is reflected in the National Strategy for Water Supply and Sewage in the Living Areas of the Republic of Moldova, adopted by the Government through decision nr. 662/13.06.2007. Considering the existent reality, potential improvements and further development of these services, the Strategy reflects the mid-term (2008-2012) and long-term objectives until 2025. Within the reference period, the state budget has been significantly constrained, consequently leading to reduction of local public spending. The key sources to finance the spending on water supply and sewage systems are non refundable EU grants, funds from Sweden and Switzerland and through refundable credits for investment.