The development objective of the Adaptation of Water Supplies to Climate Change Project is to enhance climate resilience of investments made in Nicaragua's rural water supply sector in order to cope with: increasing climate variability; and expected adverse impacts of climate change in selected areas. There are three components to the project. The first component of the project is pilot adaptation initiatives to enhance climate resilience in the selected Municipalities. This component will support integrated adaptation projects to be implemented in four pilot Municipalities (Juigalpa, Murra, San Ramon and San Juan de Limay). The diversity of the local conditions will ensure that the implementation of the adaptation activities in these pilot areas generates lessons learned that can be replicated on a broader scale through subsequent adaptation investments. The second component of the project is coastal wetland protection and reduction of vulnerability to the sea level rise in the Municipality of Corn Island. This component will support the activities in the Atlantic Coast region of Nicaragua, specifically in the Corn Island pilot Municipality. The third component of the project is institutional strengthening, project management and monitoring. This component will strengthen institutional capacity and coordination mechanisms at national and municipal levels to facilitate the integration of climate change adaptation into Nicaragua's water supply and sanitation and water resources management sectors.