The DTF is a basket fund established through SI No.65 of 2001 under the administration of NWASCO as provided for by the WSS Act No. 28 of 1997. SI 50 of 2004 amended certain provisions of SI 65 of 2001.

The above SIs lay down modalities according to which the Fund shall be managed, the way CUs can apply for assistance from the Fund and the obligations of utilities for project execution.

The management of the fund is separated from the regulatory functions of NWASCO through a separate decision making process.