About 20-40% of water finnaces is being lost due to dishonest and corrupt practices ( The World Bank). As per Global Water Corruption Report corruption increases price of water networks from 25-45% and construction sector is the most corrupted one. Contractors pay bribes to win contracts and then the low quality work and materials resulting shorter life and limited capacity of water networks. The cost for a household connection is US$ 400. If we take high end estimate for the cost of corruption in water provision i.e 45%, the price per household increases to US$ 580. It means we are connecting fewer household due to added cost of corruption and thus it is tempering the progress on lowering child mortality and putting increased challenges in achieving MDGs related to water, health and poverty. Having access to water would have other positive impacts such as household health, education, women’s empowerment and poverty. The failure of governance in water sector makes the society particularly women and children most sufferer. Various research shows that most of the arsenic patients are women and children. Every year about 7 crore people in Bangladesh become affected by various water borne diseases due to lack of safe drinking water and 1 lac 10 thousand die from such diseases. The Government of Bangladesh alone spend US$ 80 million every year to cure the patients from water borne diseases. According to the World Bank, Bangladesh occurs an economic loss of US$ 670 million every year due to poor capacity of Dhaka WASA in managing water supply for Dhaka city people.