<SEC-DOCUMENT>0001292814-18-002026.txt : 20180604
<SEC-HEADER>0001292814-18-002026.hdr.sgml : 20180604
<ACCEPTANCE-DATETIME>20180604165741
ACCESSION NUMBER:		0001292814-18-002026
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180630
FILED AS OF DATE:		20180604
DATE AS OF CHANGE:		20180604

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
		CENTRAL INDEX KEY:			0001170858
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31317
		FILM NUMBER:		18878864

	BUSINESS ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
		BUSINESS PHONE:		011-55-11-3388-8000

	MAIL ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sbs20180528_6k.htm
<DESCRIPTION>SBS20180528_6K
<TEXT>

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   <TITLE>sbs20180528_6k.htm - Generated by SEC Publisher for SEC Filing</TITLE>
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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Washington, DC 20549 </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORM 6-K</B></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>REPORT OF FOREIGN ISSUER</B><BR><B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>

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<DIV><FONT color=#000000 size=2 face="Times New Roman"><B>For&nbsp;May, 2018</B></FONT></DIV><FONT color=#000000 size=2 face="Times New Roman"><B>(Commission File No. 1-31317) </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Exact name of registrant as specified in its charter) </I></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Translation of Registrant's name into English) </I></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><B>Rua Costa Carvalho, 300 <BR>S&#227;o Paulo, S.P., 05429-900 <BR>Federative Republic of Brazil </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Address of Registrant's principal executive offices) </I></FONT></DIV><BR>

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<BR>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark whether the registrant files or will file <BR>annual reports under cover Form 20-F or Form 40-F. <BR><BR>Form 20-F ___X___ Form 40-F ______</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(1)__.</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(7)__.</FONT></DIV>

<P></P>

<P align=center><FONT size=2 face="'Times New Roman, Times, Serif'">Indicate by check mark whether the registrant by furnishing the <BR>information contained in this Form is also thereby furnishing the <BR>information to the Commission pursuant to Rule 12g3-2(b) under <BR>the Securities Exchange Act of 1934. <BR><BR>Yes ______ No ___X___</FONT></P>

<P></P>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">If "Yes" is marked, indicated below the file number assigned to the<BR>registrant in connection with Rule 12g3-2(b):</FONT> </DIV>

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   <TD style="BORDER-TOP: #999999 1pt solid; HEIGHT: 16.4pt; BORDER-RIGHT: #999999 1pt solid; BORDER-BOTTOM: #999999 1pt solid; PADDING-BOTTOM: 0cm; PADDING-TOP: 0cm; PADDING-LEFT: 5.4pt; BORDER-LEFT: #999999 1pt solid; PADDING-RIGHT: 5.4pt" rowSpan=5 width="11%">

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   <IMG src="x18060417435400.gif" width=51 height=68></FONT></P></TD>

   <TD style="BORDER-TOP: #999999 1pt solid; HEIGHT: 16.4pt; BORDER-RIGHT: #999999 1pt solid; BORDER-BOTTOM: #999999 1pt solid; PADDING-BOTTOM: 0cm; PADDING-TOP: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" width="89%" colSpan=4>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=verdana,sans-serif>Organizational Instrument</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

   <TD style="HEIGHT: 2.6pt; BORDER-RIGHT: #999999 1pt solid; PADDING-BOTTOM: 0cm; PADDING-TOP: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="19%">

   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Phase:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Institutional Policy</FONT></B></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Current</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>DISTRIBUTION OF DIVIDENDS</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI0031 &#8211; V.1</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Issuer Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Validity of the 1st version:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Validity of this version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>DANTE RAGAZZI PAULI - DRPAULI</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0cm" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>May 9<SUP>th</SUP>, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0cm" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>May 9<SUP>th</SUP>, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Related Areas (Scope):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Processes:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>SABESP</FONT></FONT><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>-</FONT></FONT><FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0cm 0cm 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif>1.</FONT></B><B><FONT style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>Introduction</FONT></B></H1>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 0pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 12pt; LAYOUT-GRID-MODE: line" face=Arial,sans-serif>This institutional policy establishes the rules in order to guide the Company&#8217;s process for the distribution of dividends.</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif> </FONT></P>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif>2.</FONT></B><B><FONT style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>Purpose</FONT></B></H1>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>2.1</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Establishing guidelines to lead the company in the process of distribution of dividends, as set forth in Item V of Article 8 of the Federal Law 13303/2016.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>2.2</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Disclosing to all interest parties, shareholders and investors, the Company&#8217;s guidelines for the distribution of dividends </FONT></H2>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif>3.</FONT></B><B><FONT style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>Guidelines</FONT></B></H1>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.1</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The Company&#8217;s fiscal year has twelve (12) months, starting on January 1 and ending on December 31 of each year.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.2</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Common shares will be entitled to a minimum mandatory dividend of twenty-five percent (25%) of the fiscal year&#8217;s net income, after the deductions established or authorized by law, </FONT><FONT lang=EN style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>until the universalization of basic sanitation services in the operated area is reached</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.3</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Dividends may be paid by the Company as Interest on Equity - IoE.</FONT></H2>

<H3 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 3pt 0cm 3pt 3cm; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 10pt; FONT-WEIGHT: normal" color=black face=Arial,sans-serif>3.3.1</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" color=black face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" color=black face=Arial,sans-serif>The portion of the dividends paid as Interest on Equity will be calculated according to the provisions of Article 9 of Federal Law 9249/1995 and is subject to withholding income tax, which will be considered as an additional dividend.</FONT></H3>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.4</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Five per cent (5%) of the net profit will be primarily, before any other allocation, used in the legal reserve, which shall not exceed twenty per cent (20%) of the share capital, as established by Article 193 of Federal Law 6404/1976.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.5</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The proposal for the distribution of dividends must take into account:</FONT></H2>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 70.9pt; TEXT-INDENT: -17.85pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face=symbol>-</FONT><FONT lang=PT-BR style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>the need for investments to universalize the basic sanitation services;</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 70.9pt; TEXT-INDENT: -17.85pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face=symbol>-</FONT><FONT lang=PT-BR style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>the fulfilment of the Company&#8217;s corporate purpose, as set forth in its Bylaws;</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 70.9pt; TEXT-INDENT: -17.85pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face=symbol>-</FONT><FONT lang=PT-BR style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>the cash generation and requirement; and</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 70.9pt; TEXT-INDENT: -17.85pt"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face=symbol>-</FONT><FONT lang=PT-BR style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>the Company&#8217;s economic and financial sustainability.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.6</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The Board of Directors is responsible for resolving on the statement of Interest on Equity and/or distribution of dividends, not exempting the Shareholders&#8217; Meeting from ratifying such resolution.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.7</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The Fiscal Council is responsible for issuing a legal opinion on the Management's Proposal to be submitted to the Shareholders&#8217; Meeting, on the matter of the distribution of dividends</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.8</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The Board of Directors may propose to the Shareholders&#8217; Meeting the allocation of the remaining balance of the fiscal year&#8217;s profit to create an investment reserve, as set forth in the Bylaws and in the current law.</FONT></H2>

<P style="MARGIN: 0cm 0cm 0pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif></FONT>&nbsp;</P>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm">&nbsp;</H2></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=verdana,sans-serif>Organizational Instrument</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Phase:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Institutional Policy</FONT></B></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Current</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>DISTRIBUTION OF DIVIDENDS</FONT></B></FONT><B><FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI0031 &#8211; V.1</FONT></B></FONT><B><FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Issuer Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Validity of the 1st version:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Validity of this version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>DANTE RAGAZZI PAULI - DRPAULI</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0cm" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>May 9<SUP>th</SUP>, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0cm" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>May 9<SUP>th</SUP>, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Related Areas (Scope):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0cm 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Processes:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>SABESP</FONT></FONT><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0cm"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>-</FONT></FONT><FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0cm 0cm 0pt"><FONT lang=PT-BR style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT>&nbsp;</P></DIV>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.9</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The allocation of the fiscal year&#8217;s net profit and of the distribution of dividends shall be submitted to the Ordinary Shareholders&#8217; Meeting, held annually, on the first four months after the end of the fiscal year.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.10</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Pursuant to Article 205 of Federal Law 6404/1976, the Company will pay the dividend due to the common shares held by the person that, at the date of the dividend statement, is registered as the share&#8217;s owner or beneficial owner.</FONT></H2>

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<P style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PAGE-BREAK-AFTER: avoid; PADDING-BOTTOM: 0cm; PADDING-TOP: 0cm; PADDING-LEFT: 0cm; MARGIN: 0cm 0cm 0pt; BORDER-LEFT: medium none; PADDING-RIGHT: 0cm"><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>The date of the statement will be the same in which the Annual Shareholders&#8217; Meeting will be held.</FONT></P></DIV>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 0pt"><FONT lang=EN-US style="FONT-SIZE: 8pt" face=Arial,sans-serif></FONT>&nbsp;</P>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.11</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The dividend will be paid, unless otherwise resolved by the Annual Shareholders&#8217; Meeting, within 60 (sixty) days as of date of the statement and, in any case, within the fiscal year.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.12</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The payment of the dividend will be made through the bank checking account held in the name of the shareholder, through the depositary financial institution or through any other means provided by law.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 6pt 49.6pt; TEXT-INDENT: -1cm"><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.13</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The dividends approved will not accrue interest and, if not claimed within three (3) years from the date of the Shareholders&#8217; Meeting that approved them, will expire and be returned to the Company.</FONT></H2>

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<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 6pt 0cm 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif>4.</FONT></B><B><FONT style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Arial,sans-serif>Supplements</FONT></B></H1>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Attachments Mentioned (Attachments&#8217; Base)</FONT></P></TD>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Documents Mentioned</FONT></P></TD>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Record Information</FONT></P></TD></TR>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 2pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 6pt" color=black face=Arial,sans-serif>-</FONT></P></TD>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Files Attached (Additional Files of the Organizational Instrument)</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0cm 0cm 3pt" align=left><FONT><FONT style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Appendix</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: left; MARGIN: 0cm 0cm 3pt" align=left><FONT><FONT style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Number</FONT></FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0cm 0cm 0pt" align=left><B><FONT><SUP><FONT><B><FONT style="FONT-SIZE: 12pt" face=Verdana,sans-serif>Definitions</FONT></B></FONT></SUP></FONT></B></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt"><B><FONT><SUP><FONT><B><FONT style="FONT-SIZE: 12pt" face=Verdana,sans-serif>0001</FONT></B></FONT></SUP></FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0cm 0cm 3pt" align=left><FONT><FONT style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Linked to:</FONT></FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0cm 0cm 0pt" align=left><B><FONT><SUP><FONT><B><FONT style="FONT-SIZE: 12pt" face=Verdana,sans-serif>PI0031v01 &#8211; Distribution of Dividends</FONT></B></FONT></SUP></FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm"><FONT style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Description</FONT></P></TD></TR></TABLE></DIV>

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   <P style="MARGIN: 3pt 0cm"><B><I><FONT lang=EN style="FONT-SIZE: 10pt" color=#222222 face=arial,sans-serif>Universalisation of basic sanitation services</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm"><FONT style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Water Services </FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm 3pt 9.15pt"><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Universalisation: 98% for coverage area and 95% for service provision</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm"><FONT style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Sewage Services</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm 3pt 9.15pt"><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Universalisation: 95% for coverage area, greater than 90% for sewage collection and 95% for sewage treatment</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm"><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT>&nbsp;</P>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0cm"><B><I><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Source:</FONT></I></B><I><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif> Executive Board&#8217;s Resolution 0271/2016</FONT></I></P></TD></TR></TABLE></DIV>

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<DIV style="BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0cm; PADDING-TOP: 1pt; PADDING-LEFT: 0cm; BORDER-LEFT: medium none; PADDING-RIGHT: 0cm">

<P style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0cm; TEXT-ALIGN: right; PADDING-TOP: 0cm; PADDING-LEFT: 0cm; MARGIN: 3pt 0cm; BORDER-LEFT: medium none; PADDING-RIGHT: 0cm" align=right><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif>P&#225;gina </FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif>1</FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif> de 1</FONT></P></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>SIGNATURE&nbsp;</U></B></FONT><FONT size=1>&nbsp;</FONT></DIV></U></B></FONT>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city S&#227;o Paulo, Brazil. <BR></FONT></DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Date:&nbsp;May 28, 2018</FONT></DIV>

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   <DIV align=left><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV></TD></TR>

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   <TD vAlign=top align=left><FONT color=#000000 size=2 face="Times New Roman">By:</FONT></TD>

   <TD vAlign=bottom align=left>/s/&nbsp;&nbsp;<FONT style="FONT-FAMILY: times new roman" size=3>Rui de Britto &#193;lvares Affonso</FONT>&nbsp;&nbsp;&nbsp;&nbsp;

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   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>

   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Title: Chief Financial Officer and Investor Relations Officer </FONT></DIV></TD>

   <TD></TD></TR></TABLE></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<P>&nbsp;</P>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

<P align=justify><FONT size=2 face="'Times New Roman, Times, Serif'">This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. </FONT></P>

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