France's Council of State rejected on Monday the appeal from the French government, meaning the département of Pas-de-Calais and the town of Calais must work to improve life for the 6,000 migrants who live at the camp.
The body noted that the living conditions at the slum were "very likely to expose migrants to inhumane or degrading treatment".
The council's decision backs an earlier judgement by a court in Lille that ordered France to install ten more water stations - with five taps each, 50 latrines and "one or several" more access points to emergency services.
Along with the new sanitation stations, the administrative court had ordered the installation of garbage collection sites and general cleaning of the camp.
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