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This paper provides an overview of the experience in Western Australia where the major water utility changed from a public service department to a corporation with commercial structure and objectives. This paper emphasizes the benefits obtained through this process for the various stakeholder groups in Western Australia and will also cover some of the challenges faced through this transition. In many ways the former "public service" management model mirrors the municipal structures for water utilities and much of the experience of the Water Corporation will be relevant to the consideration of various water utility models. Includes figures.