In August 2007 the Council of Mayors (SEQ) established the Water Reform Program, to coordinate and manage the region’s response to the State Government’s direction for institutional water reforms. The program concept was endorsed in October 2007 and the process is steered by a Program Control Group (PCG) made up of Council CEOs or their delegates.

The State Government initially tasked the Council of Mayors (SEQ) Water Reform Program with the following responsibilities by July 2010:

• To support Councils in the separation and transition of their current water businesses; and
• To assist the new entities with the design and establishment of one regional water and wastewater distribution business and three separate water retailers.

In May 2009, the State Government indicated they would consider an alternate water reform model if it reduced business implementation costs and met with water reform policy objectives.  In response, the Council of Mayors proposed an alternate integrated distribution and retail model for Stage 2 of the State Government's water reforms.

On 18 July 2009, the State Government confirmed its support for three new integrated distribution and retail businesses made up of the following Councils:

• Brisbane, Ipswich, Lockyer Valley, Somerset and Scenic Rim
• Moreton Bay and Sunshine Coast
• Gold Coast, Redland and Logan

Unlike the State Government's previous reform model , consisting of one single distribution business and three retailers, the new model integrates both the retail and distribution functions in each new business.