This practical guide provides the most relevant innovative financing instruments and mechanisms that water and sanitation utilities in Latin America and the Caribbean could use as an alternative or complement to their traditional means of financing. In particular, this Guide aims to deepen the added value of these innovative instruments, explain their concept and implementation process, and provide practical recommendations on their structuring, as well as present representative case studies that exemplify their application by other entities in the sector in LAC and the world. In this Guide, the innovative financing instruments and mechanisms identified have been grouped into three main groups: (i) Thematic Bonds and Loans, (ii) Sustainability-Linked Bonds and Loans, and (iii) Other Structures and Issuers.