Alright kiddo, you see water is something we all need to drink, wash and clean. In England, the government used to own most of the companies that provide water to people. But a few years ago, they decided to sell some of these companies to private businesses.
So now, instead of the government owning the companies that provide water, there are big companies that own them. These companies can make decisions about how much they charge for water and how they provide the water.
Some people think this is good because it means private businesses can use their own money to improve how they provide water to people. Others think this is bad because it means the companies are only focused on making money and might not care as much about providing water to people.