This chapter attempts to shed some light on the impact of privatisation in the Malaysian water sector by employing a quantitative based empirical analysis. Malaysia is useful country case study on the impact of privatisation in the water sector. There is a variety of forms of institutions in its water sector – full privatisation, partial privatisation and state. The country is also a developing economy, with a significant rural area where access to treated water continues to be serious problem. Thus, the Malaysian water sector provides an opportunity for an empirical test of the impact of privatisation in a developing economy. Finally, this is the first study of the Malaysian water sector using household expenditure data.  Publication: UNRISD project on “Social Policy, Regulation and Private Sector Involvement in Water Supply???.  Author: Lee, Hong Kim Cassey.