Establish a Water Resilience Bond mechanism that decouples infrastructure financing from user tariffs, eliminating the affordability paradox that prevents cost-recovery pricing in poor countries. The core structure: (1) International Water Resilience Fund — a $50B multilateral fund capitalized by donor governments and blended with concessional financing.

(2) Country-level water utilities issue bonds (Water Resilience Bonds) backed by a ring-fenced revenue stream from three sources: carbon finance (from water-efficient agriculture and methane capture from wastewater), payments for ecosystem services (from watershed protection), and results-based development finance (from World Bank and bilateral development agencies).

These revenues are not customer tariffs — they come from global finance mechanisms. (3) Tariff structure remains affordable: poor households pay 3-4% of income for basic water and sanitation (WHO affordability threshold); middle-income households cross-subsidize the bottom quartile; wealthy households and industries pay full cost-recovery rates.

(4) Ring-fenced bonds are liquid and investment-grade, enabling institutional capital to flow into water infrastructure at scale without requiring either user fee increases or continued aid dependency.