State-operated enterprise is a special construction of enterprises management. In economical way, common authority is the most power to conduct and interrupt industry activities. In political way, it implied government gets more abundant social resource. Tradition economic theory is that government might take over properly some particular conditions such as external effect of product output or consuming, public assets, asymmetric information, and natural monopoly, etc when market failed. And market should be balanced by marker function itself to insure high efficiency on social resource. Market doesn¡¦t always exist, many countries exist state-operated enterprises, and its mainstream in socialist countries not only consciousness but politics. The research is feasibility evaluation and strategy planning on privatization on Taiwan Water Company. The purpose of state-operated enterprises is fit the state policy to provide and satisfy the people's livelihood and settle down social external effect. However, Does people¡¥s livelihood such like water, electric suit for privatization? And what have to be concerned? It¡¦s in this article as follows. Keywords¡GState-operated enterprises, privatization