The aim of this paper is to present a practical manual prepared for the Department Public Health and Environment now Department for the Protection of the Human Environment of the World Health Organization (WHO) dealing with how to identify, collect, estimate and compare costs of the available technical options to provide access to safe drinking water in low-income communities. To cost an improved water supply technology, likely to secure access to safe drinking-water as defined by the WHO-UNICEF Joint Monitoring Programme for Water Supply and Sanitation, we rely on a bottom-up approach that disaggregates the technology process according to its essential components, singled out by an engineering description. Questionnaires have been developed to identify the main resources invested in a water supply project and to collect, at different disaggregation levels, four types of costs, namely: infrastructure, operation, maintenance and other relevant costs such as administration. Comparability of these different cost elements is achieved by discounting expenditures at different times to the same reference time. Eventually, full and unit cost indicators allowing least-cost analysis are derived from this cost-picture.