Mainly On Domestic Water Industry Chain Link To Broaden The Scope Of Application Of Analysis Of The Ppp Mode

China’s urban water industry was originated from water supply industry. Since the reform and opening up, the urban water industry has been growing and developing rapidly together with the acceleration of urbanization and city expansion process, which can basically meet the water demand of industrial and domestic use. As a traditional natural monopoly industry, for a long time, it is the governmental or public organizations that are responsible for the investment, construction, operation and management work of urban water industry. This monopoly management system by governmental organizations has emerged some disadvantages or weaknesses, such as low water product quality, inefficient water related service, heavy financial burden and weak professionalism.Since1990s, the urban water market reform has opened the water market and extended the industry chain, which has formed a stable upstream (water related research, planning or design), midstream (construction work of urban water infrastructure, facility and equipment) and downstream (water related service like operation, management and maintenance work of urban water infrastructure, facility and equipment). The PPP (Public-Private Partnership) model also begins to appear in some areas, where governmental organizations and private enterprises cooperate and play their respective advantages to provide public services within urban water area. This contract form of public water service can help specify the rights and obligations of both governmental organizations and private enterprises, and achieve good results.This paper analyzed the PPP model use potential in the line of urban water industry chain besides the water infrastructure construction work which has already adopted some PPP models successfully like service outsourcing, O&M contract, BOT, TOT and so on. The specification of these potential sectors can help break the monopoly situation by governmental organizations, innovate the current mechanism, bring in market competition and form a flexible market-based financing model. As a result, the private enterprises can assist the governmental organizations to speed up the construction and updating of the urban water infrastructure. The analysis showed that the potential sectors which could adopt PPP model include:the operation and maintenance service of water supply plants; the investment, construction, operation and maintenance work of sewage treatment plants; the facility and equipment installation, commissioning, maintenance and other professional technical services of small and medium-sized water supply or sewage treatment plants; the pipeline installation of water supply network and drainage network; the pipeline leakage percentage control and management service of water supply network; the routine repair and maintenance work of water supply network and drainage network; water metering testing service; water-saving reconstruction work for communities, plants, schools and other institutions; independent drinking water quality testing service for citizens.The appropriate introduction and adoption of flexible PPP models into the above sectors can help attract qualified and capable private enterprises to participate in urban water industry and cooperate with governmental organizations to upgrade urban infrastructure, reduce the financial burden of governmental organizations, which is of great importance for urbanization acceleration and regional economy promotion within China.