Current demand analysis methods do not formally cover the case of chronic deficits in quantity or quality of water and sanitation services. These services include drinking water supply (DWS), wastewater and sewage treatment (WST), and municipal solid waste management (MSW). Formal analysis of this case would, at minimum, define the deficit state and evaluate appropriate options for reducing it. This paper proposes for a formal analytical model for municipal sanitation systems (MSS) that operate with deficits in at least one of the constituent services of DWS, WST, or MSW. The model introduces definitions and notation for describing the deficit state for conducting demand analysis on municipal sanitation systems. This model of demand analysis for systems with chronic deficits will hereinafter be referred to as deficit analysis. A case study for Bacoor, Philippines is presented as an example.