This booklet highlights key features of successful delivery of water and sanitation services in small towns in Nepal, sector reforms, and lessons learned in designing water supply and sanitation projects. In Nepal, small towns serve as important extensions to overpopulated large municipalities and capital cities. Meeting the demand for water supply and sanitation services in small towns is crucial to sustaining a balanced urbanization. This booklet presents how the Asian Development Bank (ADB), government, and local communities effectively work together to reach their goal of providing clean water for 24/7 and sanitation to more than 1.24 million people in 69 urban centers by 2021. This booklet is accompanied by a short film produced by ADB, highlighting key outcomes achieved in Lekhnath, one of the towns under the Small Towns Water Supply and Sanitation Sector Projects.