The Fiji cabinet has decided that the trouble-plagued Water Supply Department should be corporatised.
The minister for public enterprise reform, Savenaca Draunidalo, says this means it will become a commercial statutory authority.
Mr Draunidalo says the main aim of the reform is to create a greater focus on commercial business and improvement in the delivery of water to the public.
He says the Asian Development Bank would undertake the initial restructuring process.
The move comes amid fierce public opposition to the privatization of water which the minister for public utilities, Robin Irwin, says, would not cost more than $2 a litre.