This analysis of the politics of water describes the historical development of the water industry through the 1980s privatization controversy in England and Wales and the contentious hybrid reorganization in Scotland, to current environmental and social concerns. Against a background of Europeanized policy-making, it shows how privatization and increasing EC influence have shifted water policy from the private management of public business, to the public management of private business. As water continues to inspire controversy and conflict over the salaries of its senior executives, this work examines the consequences of increased water charges and public concern over levels of water pollution in Britain.