Service-oriented municipal corporations have been established in the two biggest urban centres in Bhutan namely, Thimphu and Phuentsholing. Thimphu Municipal Corporation (TMC) is the service organization that has the mandate for executing urban water supply and sanitation programmes in Thimphu city. TMC is an autonomous ‘Civic Body’ under the municipal charter granted in 2003, as per the Bhutan Municipal Act of 1999. However, the overall responsibility to formulate strategies and policies for human settlement in the country rests with the Ministry of Works and Human Settlement of the central government, as the nodal agency, with its subordinate Department of Urban Development and Engineering Services made responsible for executing urban water supply and sanitation programmes.