The Japanese parliament has passed a law enabling the privatisation of water supply services. The revision to the existing Water Supply Act authorises local governments to concession water services to private companies for up to 20 years.

This is in response to the Health, Labor and Welfare Ministry's finding that one-third of municipal governments managing water supply services are currently unable to cover providers' operating costs with water bills. As the Japanese population continues to descrease, so does revenue from water bills.

Concessions will also enable much speedier renovation of water supply systems than would be possible under public authorities.