| There are many serious difficulties that challenge the continuous development of China, such as lack of water resources, unequal distribution, serious waste & pollution of water. It is urgent that we research water industry and use water scientifically. With the development of the cities, water industry in China including water supply and wastewater treatment will become the largest water market in the world. The government has opened the municipal market since September 2003, which provides good chances for the development of municipal water industry. It is very meaningful to study the industry and market of municipal water. The thesis contains four sections. The first section introduces some basic conceptions, including water industry, water market, etc. The second section introduces municipal water industry in China. The market is large and on the rapid increase. The laws are not so powerful that they do not fit water-industry development. The industry structure is weak for market risk. Sewage treatment is important for protecting recycling of water resources. But the development of wastewater-treatment industry lays behind that of water-supply industry. The third section analyzes municipal water market in government, industry and enterprises areas. It predicts the problems and analyzes their reasons. The enterprises are the important sector of water industry. The thesis lists the four models of enterprises development.The fourth section is the end of this thesis. It introduce some important things during the writing period.
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