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This Report provides an overview of a community-based, co-design process for water-sensitive upgrading informal settlements. It outlines the three main steps and their activities: Step 1: Laying foundations for co-design; Step 2: Building understanding and co-designing options; and Step 3: Reviewing options and refining the Concept Plan. Activities under each step are outlined along with representative outcomes and outputs. It draws from experience with the Revitalising Informal Settlements and their Environments (RISE) program, implemented in Indonesia and Fiji. The Report reflects on co-design with the two demonstration projects as well as the first six neighbourhoods in Makassar. It outlines the approaches and activities that can foster meaningful participation of settlement residents, as well as government, industry and service provider stakeholders, into the design and delivery of water-sensitive upgrading projects.