The author presents as a background a summarized history of sanitation in Brazil and alsewhere. He emphasizes the changes ocurred with the creation and activities of SESP Foundation, an institution of integrated health action and its rationalized project of municipal autonomy through the creation of the AMSA - autonomous municipal and sewage agencies. He mentions the factors which lead to the creation of PLANASA by BNH. He discusses its merits and disadvantages, the most important of all was the absence of any kind of population participation and the loss of municipal autonomy. He purports a new policy, which includes supporting the beneficial effects and the change of wrong aspects, and finnaly he proposes general solutions.