The improvements were achieved after the Rose Revolution of 2004 when the government decided to reform the sector and to invest in it after many years of neglect.

When the Soviet Union collapsed and Georgia became independent in 1991, its water supply and sanitation infrastructure was in bad shape.

After independence there was no clear government commitment to address the deficiencies in water supply and sanitation and service quality deteriorated even further.

In 2003 a report by the OECD found that the Georgian urban water and sanitation sector was seriously under-financed, given its long neglect.

The report recommended increasing collection efficiency and to double the water and sewer tariff in areas outside the capital until they reached the highest affordable level.

Furthermore, the government should increase its spending for water supply and sanitation, reform the sector's structure and strengthen human and institutional capacities.

In 2006, a credit of 25 million USD had been approved by the European Bank for Reconstruction and Development (EBRD) to rehabilitate the water and sanitation infrastructure of Tbilisi.

The new company was obliged to keep tariffs unchanged for the next five years and to make substantial improvements, including the rehabilitation of the sewer infrastructure by 2012, 24-hour water supply within the entire service area by 2015 and the construction of a new wastewater treatment plant at Gardabani to replace the dilapidated existing plant by 2018.

This was more than the inflation rate during the same period, but increases were not as high as the average for water and power companies in Georgia.

70% of customers now receive water 24 hours a day, and a modern wastewater treatment plant has been commissioned in 2012.

The plant functions properly, so that the quality of coastal waters has improved substantially, benefiting tourism and making it possible to eat again locally caught fish.

Despite the abundance of water resources, the Eastern part of Georgia is relatively dry and is regularly affected by droughts.

[1] It is often difficult for surveyors conducting general household surveys to get reliable responses to the question that refers to the exact type of latrine in a house, so that the above access numbers should be treated with some caution.

Groundwater (60% of the total) is pumped from well fields, while surface water (40%) is mostly obtained from the reservoir of the Zhinvali Dam 42 km from the city.

The sewer network consists of 1,600 km of pipes made of ceramic, reinforced concrete, cast iron, asbestos cement and polyethylene.

The wastewater is transferred by trunk sewer with a length of 72 km to the Gardabani waste water treatment plant commissioned in 1979 with a capacity of 1 million m3/day.

Economic regulation of the sector, including the approval of tariffs, is the responsibility of the Georgia National Energy and Water Regulatory Commission.

It implements investment projects funded by external donors and the government, including in the field of water supply and sanitation.

According to the ADB, UWSCG’s "effectiveness is severely constrained by the lack of technical and skilled staff to manage the service.

[14] However, de facto the government in Tbilisi is involved in key decisions related to water supply and sanitation in Adjara.

Current regulatory period started in 2018 and ends in 2020, after which new tariff levels will reset based on approved tariff-setting methodology.

No major rehabilitation works were carried out in the period between 1987 and 2004 and at the time more than 60% of the water distribution infrastructure needed to be replaced.

[14] The main sources of financing for urban water supply and sanitation in Georgia outside the capital are loans and grants from external donors as well as the state budget.

In the capital the main sources of financing are equity provided by the private owners of the company, the proceeds of local currency bonds and retained earnings.

The project will also support the implementation of a public awareness program, including information on hygiene and sanitation.

[17] A fifth loan for $75 million to support a sewerage system in Zugdidi, and a sewage treatment plant in Mestia, was approved in September 2015.

[19] The European Investment Bank lends EUR 100 million to finance wastewater collection and treatment infrastructure in Kutaisi, Georgia’s third largest city.

[20] Germany, through its development bank KfW, finances improvements in water supply and sanitation in Batumi since 2006.

It includes the construction of a modern wastewater treatment plant, a functioning stormwater discharge system and the installation of about 37,300 water meters in multi-apartment buildings.