The water services industry in Selangor, Federal Territories of Kuala Lumpur and Putrajaya has been highly fragmented and inefficient for more than two decades since the privatisation of water services which started in 1994. It is the aspiration of the State Government of Selangor to improve efficiency and restructure the water industry by moving towards a holistic operating model for the water supply services industry.

The restructuring of the water industry began in 2008 when the Selangor government gave Kumpulan Darul Ehsan Bhd (KDEB) the mandate to lead and consolidate the water industry owned and operated by different companies. From 2009 till 2014, various tireless efforts were taken to implement the restructuring exercise.
 

Pengurusan Air Selangor Sdn Bhd was set up as the special purpose vehicle of the Selangor government to be the single holistic licensee to provide water services following the restructuring of the water services industry.

On 15 October 2015, Air Selangor acquired Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) and PNSB Water Sdn Bhd (PNSB Water). Thereafter, Konsortium ABASS Sdn Bhd (ABASS) on 26 January 2016, Konsortium Air Selangor Sdn Bhd (KASB) on 11 March 2016 and finally Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) on 24 April 2019.

On 13 September 2019, Air Selangor has become the single holistic licensee to extract, treat and distribute water for all its customers in Selangor, Federal Territories of Kuala Lumpur and Putrajaya. Air Selangor will continue to strive towards providing the best services to customers.