Drawing upon the World Bank's experience in China, as well as the Bank's global knowledge, this report paints an attainable vision for the urban water sector in the year 2020. This vision entails the provision of safe and reliable drinking water for all, comprehensive stormwater drainage, and the collection and treatment of all municipal wastewater -- provided by efficient and financially sustainable water utilities. The strategic framework and set of recommendations presented in this report provide a starting point for achieving the 2020 sector vision. The development of specific policies and programs within this strategic framework will naturally need further research and testing, but the direction is clear and requires coordinated action from national, provincial, and municipal governments, as well as water utilities. The World Bank stands ready to deepen our partnership with China through continued financing of urban water projects, as well as conducting additional research, sharing international experience, and engaging in policy dialogue at all levels of government. We trust that this report will serve as the foundation for a new generation of World Bank support for China's urban water sector.