Water resources planners, managers, and government leaders in the transition economies face the challenge of determining priorities and environmental protection project implementation against a background of immense economic, social, and institutional demands and problems. Researchers have pointed to the tremendous additional environmental costs that the transition economies face due to the inherited environmental deterioration from the central planning era (Bater, 1996; Komarov, 1994; Potravnyi, 1997). Cities in particular were the industrial, managerial, and economic showcases of the centrally planned economies. From an environmental point of view those urban areas were also the source and recipients of unprecedented levels of both air and water pollution (Goldman, 1972; Pryde, 1991; ZumBrunnen, 1984). Surface waters adjacent to those cities remain heavily polluted. Tap water is still not potable in major cities of the transition economies (Danilov-Danilyan, 1998; Trumbull, 2007; Zhulidov, 2000). During the transition period in Russia and other former Soviet states (1990 to the present), responsibility for implementation of environmental mitigation has fallen both to frequently reorganized federal bodies and to impoverished and institutionally weak local environmental protection agencies. It should come as little surprise that a sufficient transfer of resources, effective implementation, and establishment of appropriate local pollution abatement infrastructure have rarely accompanied environmental protection measures and responsibilities in the transition economies. During the centrally planned economy, underinvestment, a failure to renovate and replace equipment, poor training and management, and a general absence of pricing of water resources led to water pollution and water management problems that had been solved decades earlier in the West. Implementation of international environmental agreements did not improve significantly as the centrally planned economy transitioned to a free market economy. Explanations for low levels of implementation of wastewater treatment and other forms of environmental mitigation in the countries of the former Soviet Union have focused on institutional and financial obstacles that