This report reviews the economically vital and under-funded water sector in Yemen in alignment with the national water strategy and in harmonization with Yemen's development partners to provide support to water strategy implementation. The results indicate that at the level of the water sector, there is willingness and desire to move to a sector wide approach. Yemen National Water Sector Strategy and Investment Program was an integrated and shared strategy and could serve as a platform for common and integrated approaches to sector investment. Therefore, the Government of Yemen and donors agreed to explore the possibilitiessector wide approach investment strategy and the Bank was asked to help assess the potential relevance and scope. Many of the broad framework conditions are there, although preparation work is needed and there are some impediments to alignment that will need to be tackled. Amongst the subsectors, rural water should be a priority because it is poised to move ahead with a restructuring that will repair its current fragmented state. The report concludes that the potential benefits of moving into a sector wide approach framework ensures stronger country ownership, strengthen national capacity systems and institutions, and more effective implementation with no duplication and no wasted resources.