This policy brief summarises the evidence and outcomes of iDE's Smart Subsidy innovation and impact grant in Cambodia and provides compelling evidence for the impact and cost-effectiveness of well-targeted subsidies on latrine uptake among lower-income households in a market-based approach. The paper lays out the randomised-controlled trial design, followed by an overview of the study’s main findings and an exploration of the implications that the research findings may have for sanitation policy and future implementation.