This document discusses innovative models for funding municipal infrastructure and services in South Asia. It notes that urbanization is increasing rapidly in the region, putting pressure on cities to expand services. However, municipal governments face fiscal stress and lack adequate revenues. The document examines municipal governance reforms in countries like India to strengthen finances. It also explores innovative financing mechanisms for municipalities, including debt financing, equity investment, municipal bonds, public-private partnerships, and municipal development funds. Overall, the document analyzes challenges and opportunities for improving municipal finance to support inclusive development in South Asian cities.