Potential financing mechanisms may include the following options. The first option (baseline) involves the implementation of measures to modernize drinking water supply systems of water supply enterprises at the expense of enterprises in this sector. The implementation of this option involves the involvement of a significant amount of capital expenditures necessary for the optimization and re-equipment of infrastructure facilities, which will lead to a significant increase in tariffs for water supply services to ensure compensation for such additional costs of enterprises, which will lead to an increase in the amount of state budget expenditures to provide subsidies to the population to reimburse the costs of paying for housing and communal services, as well as to an increase in consumer debt for paying for housing and communal services. Due to the unprofitability of their activities, water supply enterprises are unable to attract a sufficient amount of credit resources, invest such resources in updating their material and technical base and increasing the efficiency of their activities. In this regard, the dynamics of increasing physical wear and tear of drinking water supply systems will continue. The development of the water supply sector will be carried out slowly and chaotically and will depend on the frequency of adjustment of service tariffs, the volume of current operating expenses of enterprises will increase in accordance with the growth of the level of losses and operating costs. The implementation of such an option, together with a significant increase in the volume of expenses of consumers and budgets of all levels for the provision of benefits, subsidies and compensation for the difference in tariffs, will not lead to the proper renewal of drinking water supply systems, and, accordingly, to improving access to and quality of centralized water supply services. The second option (traditional) provides for financing measures to modernize water supply enterprises from the state and local budgets. Due to the limited financial resources in the state and local budgets, there is a significant risk of underfinancing the planned measures, which will lead to a “point” (non-systemic) solution to the problems of the unsatisfactory technical condition of drinking water supply systems. As a result of the implementation of such an option, the issue of water supply sector development will be resolved by targeting resources to implement the Program measures. This approach will ensure containment of the growth of tariffs for centralized water supply services, but will not contribute to the creation of the conditions necessary to create an investment-attractive environment in the drinking water supply sector in the long term. The third option (optimal) involves the comprehensive application of mechanisms to stimulate the development of the drinking water supply sector in combination with financing modernization measures through investment programs of enterprises, grants, funds from foreign financial institutions, international financial organizations and technical support programs, state-guaranteed loans, state and local budgets, funds received to finance projects under public-private partnerships. The implementation of this option involves the application of a complex of legal, economic and organizational mechanisms and instruments to stimulate enterprises to make capital expenditures for the re-equipment of water supply systems. Such mechanisms and instruments are based on state guarantees of affordability and take into account the level of solvency of service recipients. This option will make it possible to find sources of stable financing for priority tasks and optimize budget expenditures, stimulate the development of related sectors of the economy, and attract long-term credit resources on acceptable terms. Potential sources of financing may be: attracting funds from state and local budgets to provide resources to water supply enterprises; foreseeing measures aimed at improving the quality of drinking water in the investment programs of water supply enterprises; introducing preferences and special credit support for projects for the construction and reconstruction of drinking water supply systems; attracting grants and loans to implement the program's tasks.