Sabesp is a Brazilian water and waste management company owned by the state of São Paulo.

In 2002-2004 the São Paulo Government sold a further equity stakes, including a listing at the New York Stock Exchange.

In 2006 a law was passed that allowed SABESP to expand its activities into other Brazilian states and internationally.

[4] According to its CEO SABESP wants to expand to serve all cities in São Paulo State.

The city of São Paulo loses more than 20 percent of its treated water, ready for distribution due to the leaking in the pipes.

Physical loss is the volume of water that was lost through the pipe leakages and could not be consumed by the population.

The old pipes cannot hold the high demand of the water flow during the peak hours and end up leaking.

The original design includes water tanks that are unequally concentrated in central São Paulo.

The reason for this lack of adequate infrastructure is due to the private-profit status of SABESP.

[11] The lack of transparency was especially prevalent during the 2014 Water Crisis concerning the major bonuses given to higher ups despite the thousands who suffered from thirst.