Before 1977, the responsibility for providing water supply and sewerage services to the citizen of Hyderabad was lying through the agency of Public Health Engineering Department and then the same was transferred to Hyderabad Municipal Corporation. In 1976 Hyderabad Development Authority was established after the enactment of Sindh Assembly Act No-XIII of 1976 with its preambles for Development, Improvement and beautification of Urban Areas of Hyderabad Division.
1977 WASA started working under the umbrella of Hyderabad Development Authority and all the responsibility was transferred to WASA, HDA.
A) OPERATION AND MAINTENANCE OF WATER SUPPLY AND SEWERAGE SERVICES OF HYDERABAD
B) TO PROVIDE AND MAINTAIN QUALITY & QUANTITY OF WATER SUPPLY & SEWERAGE SERVICES.
C) COLLECTION OF WATER / SEWERAGE TAXES.
The reason for transferring the system to WASA was that the system was not running properly by both the agencies i.e PHED, H.M.C, deficit was being increased at that time and infrastructure was going to worst. In this situation, all the assets were transferred to WASA. The establishment of WASA was based to bring improvement and to overcome the financial deficit by taking serious efforts. The Government of Sindh started to release Subsidy since 1981-82 to the tune of Rs.10.00 to Rs.15.00 million per annum which remained continued up to 1991-92 with short increased and decreased.