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Over 40% of the world’s population lives within transboundary basins and aquifers, making the successful management of this resource central to poverty reduction, sustainable development of the environment and long-term political stability, To date, financing for transboundary management has been limited and dispersed. This policy brief assesses the current financing situation and makes a case for increasing the financing of transboundary water management processes. This includes a focus on innovative financing options appropriate to particular stages in the management process and an analysis of appropriate roles for donors and national governments to take at particular stages.