Abstract
: The article examines changes in industrial relations in the recently privatized water authorities, and argues that the development of new industrial relations procedures and practices has involved a substantial reconstruction of the old public‐sector industrial relations framework. However, change has by no means been uniform throughout the ten new water plcs, and comparisons are made to highlight the diversity of management response to the new environment created by privatization. In explaining the scope and pace of change, the paper argues that the early move to single‐employer bargaining and the opportunities for comparisons of performance within the new regulatory framework are important explanatory factors.