"Water has long been underpriced and overused. With only one percent of the earth’s water available for human consumption, peak water could be a more pressing problem than peak oil. With water consumed at a faster pace than the natural rate of evaporation, precipitation, and storage, water stewardship will define many companies’ long term success or struggle."
Privatizing water is a solution governments have implemented to offset the cost of maintaining water infrastructures. With the idea of creating a bigger market the likely hood of water prices increasing can offset usage.
However the backlash against this is that it affects the poor more than the rich because the less wealthy use a greater percentage of their pay to have water, while it doesn't break a wealthier persons piggy bank.
The fear is that these companies buying the rights to water do not care about human rights any more then they care about their bottom lines and profit margins. Therefore water is likely to be sold to the highest bidder, rather then shipped to those most in need.
"So as more water goes private, fewer people have access to it" - Economist Ge Yun
Via Flora Moon