Abstract
The topic of this article is about a theory of drinking water supply. The following analysis can help to understand the context of the current discussion about the water privatization in the EU. The basis of this theory is the disaggregated valueadded chain where the value-added steps are identified, namely production, transport and supply. Due to expected efficiency gains through privatisation, public services become privatised. The question now is what kind of effect water privatisation can have. It appears that the degree of infrastructure construction does not necessarily have to be in line with the economic development of a country. However, it seems that the level of privatization is an important indicator regarding the quality and price of the water supply. The privatization degree has a strong effect on the long-term preservation of the network infrastructure. The tendency shows that privatization has a negative impact on efficient water provision.