The new water company will own and operate strategic water and wastewater assets, such as local distribution systems and treatment facilities, and develop related infrastructure.Currently, there are only a handful of large private sector companies worldwide operating in the $300 billion water market.

Enron, which is already a major player in electricity and gas, announced earlier this year that it was forming a global water business when it bid $2.4 billion (1.4 billion pounds) for a British water company Wessex Water Plc.

Enron sources say the deal is expected to close next month. Enron has said the water subsidiary initially will pursue development of water projects in Asia, Europe, and Latin America.

With this there could be tremendousopportunities for future growth as the water industry moves toward privatisation and consolidation. Sources say the company is looking to raise several billion dollars from outside investors in its pursuit of new water projects.

According to The Wall Street Journal that the size of the water company will largely depend on how much outside equity the company can raise.