Until 1989, it was the responsibility of the state to supply its inhabitants with drinking water, provide sewers and treatment of waste water. This responsibility was carried out by means of five state water and sewer enterprises. The whole system of its management was centrally organized by the Ministry of Agriculture of the Slovak Republic by means of Regional and Municipal Offices, while these state enterprises had largely limited competencies, mainly in the area of investments into public waterpipelines and public sewege, which were almost completely funded from the state budget and state endowment. However, from 1989 the process of gentle restructuring of water economy was launched, and since 1990 the competence to provide water supply, waste water treatment and drainage was shifted to municipalities, according to the Act on Municipality Establishment. For this purpose, the government of the Slovak Republic drew up several conception models for transformation of state enterprises, based on which, firstly in terms of pilot projects, some privatisation projects were realized. Consequently, by means of the Slovak Republic government decree No. 217 from March 7th, 2001, it set conditions and planned steps for assignment of property from the existing state water and sewage entersprises on municipal water companies.