This paper illustrates how carbon finance can be used to finance water treatment projects based on Evidence Action's chlorine dispenser program in Eastern Uganda. It was found that boiling 5,295 L of water leads to one ton of carbon dioxide emissions. The case project explored in this paper replaces boiling with a low-emission technology (chlorine dispensers), which means that carbon credits can be claimed for the volume of safe water provided to end users (converted into tons of avoided/averted carbon emissions). Once issued, the carbon credits need to be sold. The revenue generated from the carbon credits is sufficient enough to cover costs that traditional donors and governments are often not willing to cover, e.g. operation and maintenance costs. Carbon credits allow an innovative results-based financing model for sustainably providing safe water at no cost to the rural poor in Uganda.