Law No. 9 for the year of 1966 was issued for the purpose of establishing an Undertaking what has become known as Jerusalem Water Undertaking, empowered to develop new water resources and control all water projects in the area and entrusted to provide all water needs for drinking, household and other municipal purposes. According to the stated law, JWU was authorized to determine water tariffs, cost of services, collection procedures, in addition to develop financial, administrative and technical regulations.
Regulation No. 24, for the year of 1966 that calls for the establishment of JWU Board of Directors was issued. JWU Board of Directors has introduced regulations and by-laws to regulate all aspects of activities such as procurement, water supplies, employees and fees. It has been witnessed that JWU regulations and by-laws do not cover certain activities that usually lie under the responsibility of the regulatory body, such as those related to water resources and environment, to achieve the objectives of the national water policy in the Palestinian Territories, it had been deemed necessary to establish a number of regional water and wastewater utilities in West Bank and Gaza Strip and to expand the JWU service portfolio to cover the sewerage services in the Central Region of the West Bank.
Pursuant with the aforementioned, the Ministerial Decision No.(14/107/13/M.W/S.F) which assigns JWU to manage and collect the fees of wastewater services in its concession area, the new Palestinian water law was approved, which included a new reconstructing of the water sector, including the establishment of Water Sector Regulating Council to strengthen control over water and wastewater providers, mean while PWA was assigned to be the main responsible for plans and polices development, and establishing other regional water undertakings on national level, one of them is JWU that will be the regional service provider (Water & Wastewater) in the central part of the West Bank.