As the only wholly-owned power industry group set up by Shanxi Provincial Government, Shanxi International Electricity Group Co., Ltd has strong comprehensive strength in funds, investment, and project operation and management. In order to expand its investment fields, the group has decided to seize the opportunity to enter the water market and has planned for long-term cooperation with the Shanxi provincial water resources department. However, due to its long history in the power industry, the group is lacking in deep understanding of the water industry. In addition, the water industry requires enormous prophase financing and sunk capital, and is weak in short-term return ability though it has consistent long-term returns. This lack of understanding makes it hard for the group to make long-term goals with regards to the water industry.

This research will conduct analysis and offer suggestions on the following issues:
1) The water affairs market prospects for the country and Shanxi province;
2) Feasibility of Shanxi International Electricity Group Co., Ltd entering the water affairs industry;
3) Development strategy for the water affairs business of Shanxi International Electricity Group Co., Ltd.