Poor water quality and sanitation are leading causes of mortality and disease in developing countries. However, interventions providing toilets in rural areas have not substantially improved health, likely because of incomplete coverage and low usage. This paper estimates the impact of an integrated water and sanitation improvement program in rural India that provided household-level water connections, latrines, and bathing facilities to all households in approximately 100 villages. The estimates suggest that the intervention was effective, reducing treated diarrhea episodes by 30-50%. These results are evident in the short term and persist for 5 years or more. Poor sanitation is widely considered a major obstacle to well-being in many parts of the world.An estimated 748 million people lack access to improved sources of water, and more than 2.5 billion lack improved sanitation (WHO -UNICEF 2014). In India, open defecation is still practiced by 65% of the rural population and only 14% of the rural population have piped-in water to the household (WHO -UNICEF 2014). By some estimates, lack of safe water, inadequate sanitation, and poor hygiene practices cause 1.1 million deaths from diarrhea each year, representing 1.5% of the global burden of disease ), similar to HIV-AIDS. Open defecation in India may be responsible for approximately 9% of total infant mortality, or 6.5 deaths per 1,000 infants per year (Geruso and Spears 2015).This challenge to well-being has not gone unnoticed. Bill Gates talks of "reinventing the toilet" and has put the weight of his foundation behind this effort (Bill & Melinda Gates Foundation 2011, Gates III 2012. Building on his 2013 campaign statement "pehle shauchalaya, phir devalaya" However, the evidence that increasing sanitation coverage alone in rural areas would reduce diarrhea and save lives is surprisingly thin. Infrastructure-based (i.e. connected to sewerage) solutions have proved effective in urban environments when combined with improvements in water supply (Cutler and Miller 2006, Galiani, Gertler, andSchargrodsky 2005). However, interventions promoting on-site sanitation without sewerage, as is typically implemented in rural and other low-density settings, have not been as effective as sewerage (Wolf et al. 2014). Two recent cluster-randomized trials evaluating sanitation-only interventions in rural India, one in Orissa ) and the other in Madhya Pradesh (Patil et al. 2014) find only modest impacts of latrine construction on latrine usage, and no impacts on health.Part of the issue is that these sanitation-focused efforts have not fully taken on board two factors that play a key role in water and sanitation: complementarities and externalities. Epidemiological complementarities between water and sanitation interventions may arise because there are multiple pathways for transmission of water-borne disease (Clasen et al. 2007, Waddington andSnilstveit 2009). A behavioral complementarity can occur if providing water encourages latrine use -1 without convenient access to...