The Arizona Corporation Commission has granted approval for the divestiture of American Water, the largest water services provider in North America, from its parent RWE, a German-based utility.

RWE announced in November 2005 its intention to divest American Water. Once all approvals are secured, RWE is expected to sell its shares of American Water through a public offering in the United States.

The company has filed applications in 13 states and has already received approval in West Virginia, Virginia, Tennessee, New Mexico, Maryland and Hawaii in addition to Arizona.

Approvals are still pending in New York, New Jersey, Pennsylvania, Kentucky, Illinois, and California.

With headquarters in Voorhees, NJ, American Water employs approximately 7,000 people. The company provides water, wastewater and other related services to more than 17 million people in 29 states and Canada.

With a new understanding worldwide of the importance of fresh water services, water companies internationally have posted outstanding returns of late.

For instance, shares of Veolia, Geberit, Aguas de Barcelona and Pennon are up at least 30% in the last six months, and all are up over 140% over their prices three years ago.