The ongoing transformation of the electricity sector involves the connection of increasing amounts of controllable generation, storage, and consumption devices at the distribution network level. While many liberalized power systems have established mechanisms for achieving efficient usage of, and investment in, resources connected to the transmission network, such mechanisms are largely absent at the distribution network level. This chapter sets out a coherent and comprehensive vision for reforms to pricing, investment, and risk management to achieve efficient usage of, and investment in, distribution-connected resources as part of the long-term transformation of the electricity sector.