TNC & Partners have standardized the Water Fund development process around 5-phased cycle: Feasibility, Design, Creation, Operation, and Maturity.
The Feasibility Phase includes two 'checks' to test if a Water Fund is the right water security tool. First, a test of 'eligibility' is completed by quickly determining if there are water security challenges and a potential for a Water Fund to help. If yes, feasibility is then explored further by developing a deeper understanding of the situation and generally how a Water Fund could positively contribute to water security within the defined area.
The Design Phase is undertaken to design a Water Fund which serves as a regional collective action platform where stakeholders from all sectors convene, coordinate and collaborate to help improve water security through science-based systemic change.
The Operation Phase is undertaken to establish stability by developing and implementing a comprehensive work plan, which guides systematic execution of activities, measurement and evaluation, and communication of progress towards the goals of the water fund. These activities should be continuously improved through adaptive management, refinements, and innovation.