This report is concerned with the development of the infrastructure which is required in order to support proposed mines in Southern Mongolia. In order for the mines to be developed, it will be necessary to provide towns for the new inhabitants, road and rail links to provide supplies and to transport the mines' products to markets, and electricity for the mines' operations. Water resources need to be investigated and supplied to the mines and towns. And as all of the development advances, consideration needs to be given to mitigating any negative environmental and social impacts. The geographic focus of the report varies according to the particular topic. The mines are all located in a region which this report defines as 'Southern Mongolia', and which includes the images of Omnogovi, Dornogovi, Govisumber and Dundgovi. The majority of the important new mines are located in Omnogovi, and the analysis of housing and social impacts is concentrated in areas close to these mines. In terms of time, the report concentrates on the most important priorities for government action up to 2015. Nevertheless, consideration is given to a longer time-horizon when considering the potential environmental and water resource demands likely to arise as a result of the region's development. The report is not concerned with the longer-term actions required for broader economic development of the region, including the development of value-added industries associated with the mining industry. To get to long-term objectives, it is necessary to start with the short term. This report assumes that the Government will permit development of the mines in the near future.