The deterioration of water quality, stressed water resources and increasing water demand are among the most serious concerns in Africa and worldwide. At the same time, there is a lack of efficient and sustainable water management. This is a major challenge for future water governance policies and processes. Economic aspects play a key role for the successful implementation of integrated water resources management (IWRM) measures. Financing mechanisms are of great influence regarding how water and wastewater facilities are designed, built and operated and how these facilities contribute to an efficient long-term management of scarce water resources. Research projects in Southern Africa have shown the need of water management efficiency and the essential role of sustainable water finance for an economically, socially and environmentally sustainable management of these resources.