There are five private water companies in France which, operating in cooperation with local municipal authorities, are responsible for a large share of the country's water and sewer utilities. This article discusses the system of supplying drinking water in France, three forms of contracts between private firms and municipal organizations (concession contract, farm lease or management contract), the trend toward privatization of French utilities, and water rates in France. Operations of the Compagnie Generale des Eaux, the largest of the private companies, are described. The company's research programs and technological developments of the company relating to ozonation, and clarifiers are discussed. Includes table, figures.