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Municipal Utilities (MU) are foundation of city economic development, closely linked with people’s lives. But for a long time, there is some typical phenomenon in MU that the investment channels are simplistic, the capital is deficient, and the contradictions in supply and demand are conspicuous. In order to solve the mentioned puzzles, the following things such as:market direction reform, establishment of concession operation, introduction of competition mechanism in MU, become the focus of the present economic system reform of our country. the focus of this paper is the systematic research and exploration of practice and realization patterns in Chinese MU.Firstly, this paper analyses and investigates the characteristic of MU, and also the theoretical basis of setting up concession operation in MU. And thus this paper settles the solid theoretical basis for us to introduce concession operation into MU. Secondly, by the analysis of practical patterns, effects and problems of concession operation in modern country’s MU, there are much useful methods that we can make use of. Based on the analyses of practice of concession operation in our MU, combined with the purpose of concession operation in our MU, this article brings forth new construction ideas that the realization patterns should be the mixed form of BOT contract, joint-venture of enterprises of MU and non-government enterprises, transference of state-run stock assets and stock ownership. Finally, this paper also promotes the policy thoughts of concession operation in Chinese MU. Consequently, this article has some certain values in concession operation in our MU.
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