Responsibility for water supply and sewerage rested with the then Department of Works and Supply (now Department of Works or DOW). 

Under the National Water Supply and Sewerage Act of 1982, a new authority, the National Water Supply and Sewerage Board (the Waterboard), was established and made responsible for the development of the water supply and sanitation sector throughout the country. The Act empowered the Waterboard to declare as districts nationally administered water supplies and sewerage facilities in the country, regulate the operations of water supply and sewerage systems run by other organizations or agencies, (e.g. provincial governments, local governments, missions, statutory authorities, private enterprises, etc.), and set water supply and sewerage tariffs. In the face of limited financial resources with which to pursue economic development, the Government has moved steadily toward reducing the amount of Government subsidy to the sector by requiring consumers to pay for the costs of providing water supply and sewerage services particularly in the larger urban areas.

Responsibility for the development and management of rural water supply and sanitation facilities has been delegated by the Waterboard to the Department of Health (DOH) until 1990. DOH undertakes the implementation of rural water supply and sanitation projects through the Environmental Health Section (EHS) of provincial governments. DOH undertakes policy-making, planning and staff training at the national level, while the EHS In each province takes charge of planning, design, construction and, to a certain extent, maintenance of the systems. Other
organizations Involved In rural water supply Include: the Local Government Councils, which are responsible for the operation and maintenance of water supply schemes at the local level; and the Local Government Section of DOW, which provides assistance in the design and construction of facilities, and in the training of staff who will be involved In the construction of rural water supply systems.

In 30 years, Water PNG Limited, formerly Water Board, has come a long way in providing water and sanitation services to Papua New Guineans. Water PNG Limited celebrated this milestone in Lae. Over the last 30 years Water PNG Ltd has expanded its services to 23 centres in the country. Yangoru in East Sepik and Kainantu in Eastern Highlands are the latest additions to the many centres Water PNG Ltd is serving.

Following the successful passage of the National Water Supply and Sewerage Act in December 1986, Water PNG Limited commenced operations on 1 January 1987 as The Waterboard.

It had a name change to Water PNG, officially announcing this on December 10, 2010 at the Gateway Hotel in Port Moresby. Water PNG then became corporatised on 31st March 2017 and was renamed Water PNG Limited, by virtue of the National Water Supply and Sanitations Act 2016