On December 16,1972, during his premiership, the late President Chiang Ching-kuo, in making an important urban development policy statement, gave the following instructions："In order to be effective develop a public water supply system island-wide, a water corporation must be established immediately at the provincial level. At the same time, we must speed up the implementation of long-term plans for the development of water supply in order to concentrate human and financial resources, increase investment benefits and reduce operational cost. In accordance with these instructions, on April 1, 1973, the Taiwan Provincial Government, set up a preparatory office for the Taiwan Water Corporation (TWC), which would draw up plans for unified management and long-term development.