Water PNG was established to rationalize the provision of water supply and sanitation in the urban areas of PNG. Prior to its establishment the water sector was seriously fragmented resulting poor service delivery and no cost recovery. Following the successful passage of the National Water Supply and Sewerage Act in December 1986 Water PNG commenced operations on 1 January 1987 as The Waterboard. It had a name change to PNG Waterboard and recently changed this to Water PNG officially announcing this on December 10, 2010 at the Gateway Hotel in Port Moresby. The corporate governance framework and policy is formulated by the Board of Directors and Management Team in accordance with the functions stipulated in the National Water Supply and Sewerage Act (NSWSS Act) and Government directives.