A proposal to privatise water supply and distribution in a few areas in the city has kicked up a row with union leaders threatening to disrupt the daily water supply if the government does not abandon the privatisation proposal. Though privatising water supply was first proposed in 2000-01, during the Telugu Desam regime, it was kept in abeyance following sharp criticism that the then ruling party was dancing to the tunes of the World Bank.

In 2010, privatisation of at least a single operation and maintenance division in the city was mooted, but the unions shot it down. The current privatisation proposal too has been opposed by the Water Works Employees’ Union.