​This briefing note has been prepared in the context of the Government's stated intention in the Governor's Speech of 1st March, 1994, to corporatise the Sydney Water Board in the current parliamentary session: "This year the government will introduce legislation to corporatise the Water Board. This will be another significant step in the continued reform of the Water Board. The Board will be able to concentrate on its core business, and maximise the efficiency of its operations. It will make the Board more accountable to Government and the community." 

This paper considers the context of economic reform which has seen corporatisation and privatisation of Government Trading Enterprises (GTEs) take place. As a case study, the corporatisation of the former Hunter Water Board is examined, as is the enabling legislation, the State Owned Corporations Act 1989. The paper will also consider issues raised on both sides of the debate.