Nearly 120,000 people in Pudong's Pujiang Town in Shanghai will be getting better tap water from a new supplier that depends on cleaner fresh water as their water source.

The township government signed an agreement with the Pudong Veolia Water Corporation Limited yesterday for the business transfer, which includes engineering projects to connect Veolia's water distribution system with the town.

The 102-square-kilometer town is the biggest township in the city's suburbs and is listed as an important part in the city's long-term blueprint for its suburban area development.

The engineering projects will include construction of new pipes and also a pump station by 2009.

Construction should begin in September. By the end of this year, up to 40 percent of the township residents should get supply from the company, said General Manager Gustavo Migues.

Migues said they are confident that the takeover can ensure the residents enjoy the same water and service as people downtown.

The cost will amount to 320 million yuan (US$40 million). Among the cost, 80 million yuan will be covered by the township government.

The takeover is part of efforts to improve tap-water quality by shutting down smaller water plants and switching to big water companies.

(Shenzhen Daily June 29, 2006)