The paper deals with modalities of utility companies restructuring whose founder is local government, because new law concerning public water supply and public sewerage (utility water services) requires that utility company that provides water supply services should provide solely those services. Combining water services with other utility services is no longer possible. The deadline for adjustment with newly adopted provisions expired on 31 December 2013. Restructuring could have been happened in various ways, which are analyzed in this paper. The practice had shown that utility companies and their founders opted for the most cost-efficient modalities. Due to the additional requirement imposed by the law, demanding that in the restructured utility public water company, the sole beneficial owner of the shares is the local government, the process of restructuring should have been aligned with it. In this paper authors examine the possibility of using division of a company as the manner of the restructuring. Since the division of a company has its several sub forms / types, the paper analyses which type is appropriate for different situations at hand. The decision depends primarily on whether the company wants to keep public water supply and sewerage system services or it wishes to transfer them to the other legal entity (company) arising from the division. The paper points out the open issues in the application of the newly adopted rules and specifically highlights the particular remaining issues that should be aligned with new law while the few deadlines are still open.