The authority was founded in 2002 by a merger of West of Scotland Water Authority, East of Scotland Water Authority and North of Scotland Water Authority under the Water Industry (Scotland) Act 2002, an
Act of the Scottish Parliament. Because 100 percent of it is owned by the Scottish Government it is considered a statutory corporation. It has offices in
Aberdeen,
Dundee,
Edinburgh,
Glasgow and
Inverness. 3,600 people are employed across the organisation. It has an annual turnover of around £1bn and is funded by charges paid by its customers. Part of its long term capital expenditure is funded by long-term loans from the Scottish Government. National policy is determined by the Scottish Government, to whom the authority reports. The
Scottish Government has consulted as to how Scottish Water can work together with
Scottish Canals and
Caledonian Maritime Assets to achieve additional public benefit from all Scotland's water-related infrastructure, both inland and maritime. ==Investment programme==