UNDP’s Public-Private Partnership for the Urban Environment (PPPUE) programme has commissioned this toolkit as a contribution to its work on developing capacities in local governments, businesses and communities to work through PPPs to improve service delivery to the poor. PPPUE is the global facility that developing countries use to obtain support in their efforts to define, promote and implement PPPs to reduce poverty by increasing the access of the urban poor to basic services. The programme offers a flexible portfolio of demand driven services built on the basis of a strong partner network and results at the country level. The Tools for Pro Poor PPP at the local level are aimed at members of local level government, business and community organizations interested in an innovative approach to the problems of service delivery, especially to the poor. The toolkit has been developed as a working manual to be added to and modified as required by users to enhance its functionality.