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​The water sector includes water supply to populations, in both rural and urban areas, as well as to economic activities. This sector also comprises urban wastewater managementThe urban waste sector comprises the collection, treatment and disposal of municipal waste.

​Both sectors are considered essential to the well-being of citizens, to public health, to economic activities and to environment protection.

The water and waste sector should obey a set of principles that comprehend universal access, high standards of quality and affordability.

Water and waste services are classified as bulk or retail according to the performed activities. Bulk service is related to the wholesale activity of public water supply and to the upstream activities of urban wastewater management and urban waste management, whereas the retail services focus solely in the interaction with the end-user.​