The introduction of new land-tax rates in the Lake Issyk-Kul area - increased and better differentiated - would help capture a proportion of the rent related to the high environmental and recreational value of land in the Issyk-Kul Biosphere reserve. Eventually, increased land tax revenues (estimated at KGS 164 million per annum) could be used to improve water resource management and for other local environmental and social priorities. The financial sustainability of water services - irrigation as well as water supply and sanitation services - is addressed primarily through the restructuring of water tariffs (the introduction of two-part tariffs with fixed and variable volumetric components), as well as an increase in tariff rates. A well-thought staged approach to reforms will also help mitigate or reduce eventual political resistance to the proposed options.