The purpose of this guidebook is to provide practical advice to local governments (LGs) and their advisors on how to establish and maintain a process of planning and funding capital investment as a regular activity integrated with other activities of the LG and based on principles of good public management. The guidebook is addressed mainly to cities that have not yet established such a process. However, it also can be used by cities with established capital investment planning, because the guidebook addresses important aspects often not incorporated in existing practices, such as life-cycle costing or land financing.