-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 FzWjd8hg32UZ5/+pc5DhBkL38czOr6bzzCZN3JBvBJDI6ekOBLWWofgS0SxHzaln
 crW0t1Y/j5gTvIiARJF1hA==

<SEC-DOCUMENT>0000950144-06-006174.txt : 20061106
<SEC-HEADER>0000950144-06-006174.hdr.sgml : 20061106
<ACCEPTANCE-DATETIME>20060623170820
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950144-06-006174
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060623

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CONSOLIDATED WATER CO LTD
		CENTRAL INDEX KEY:			0000928340
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		TRAFALGAR PL
		STREET 2:		WEST BAY RD
		CITY:			GRAND CAYMAN BWI CAY
		STATE:			E9
		ZIP:			00000
		BUSINESS PHONE:		8099474277

	MAIL ADDRESS:	
		STREET 1:		TRAFALGAR PLACE, WEST BAY ROAD, P.O. BOX
		STREET 2:		GRAND CAYMAN, CAYMAN ISLANDS, BWI

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAYMAN WATER CO LTD
		DATE OF NAME CHANGE:	19941212
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Consolidated Water Co. Ltd.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;23, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
Washington, D.C. 20549-0404<BR>
Attention: Mr.&nbsp;Michael Moran and Mr.&nbsp;Scott Stringer

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Consolidated Water Co. Ltd.<BR>
Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2005<BR>
Filed March&nbsp;16, 2006<BR>
File No.&nbsp;000-25248</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Sirs:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are providing this correspondence to respond to your comments on the above referenced
filing as communicated in your letter dated May&nbsp;25, 2006. Your comments and our responses thereto
are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Item&nbsp;7. Management&#146;s Discussion and Analysis</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Cost of Sales. Page 38</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings please include a robust discussion of significant changes here and
elsewhere throughout MD&#038;A as appropriate. For instance, you indicate cost of retail sales
increased 2.3% due to variable costs and bulk sales increased 26.1% due to additional operating
cost and higher energy costs. Please quantify each variable amount that makes up the increase.
Please include qualitative and quantitative considerations for each specific underlying reason.
Please also discuss whether these variables are reasonably likely to have an adverse impact on your
future liquidity or results from continuing operations. See Regulation&nbsp;S-K Item&nbsp;303(a)(3).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>We will expand our management&#146;s discussion and analysis in future
filings to include additional qualitative and quantitative information for the
fluctuations in our financial performance. Where applicable, we will discuss those
variables reasonably likely to have an adverse impact on our future liquidity or
results from continuing operations.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>General and Administrative Expenses, page 39 </U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please explain to us your reasoning for allocating all non-direct corporate G&#038;A to retail
as opposed to allocating it across all segments. It would appear your method would not provide for
an equitable distribution and ultimately would provide for an imbalance in rates across the
segments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>The segment information reported in the Form 10-K is consistent
with the way that management organizes the segments within the Company for making
operating decisions and assessing performance, consistent with the guidance set
forth in paragraph 4 of SFAS 131.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Non-direct corporate G&#038;A expenses are paid by the Company&#146;s Cayman Island
holding company and its Cayman operating subsidiary. All of the Company&#146;s retail
operations reside with the Cayman operating subsidiary, as does a portion of bulk
segment operations. The remainder of the Company&#146;s bulk segment operations and its
services segment operations reside with acquired subsidiaries. Subsequent to these
acquisitions, management did not consider it necessary to develop a methodology to
allocate non-direct G&#038;A expenses to the acquired subsidiaries because (1)&nbsp;such
expenses are managed at the corporate level on a consolidated basis and are not the
responsibility of each segment manager; (2)&nbsp;allocating these expenses to each
segment based upon subjective allocation criteria would be, in the opinion of
management, of limited added value in assessing segment performance, but
implementing such a methodology would require significant accounting resources.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our approach for external segment reporting in this area is consistent with
the guidance provided in paragraph 29 of SFAS 131, as non-direct G&#038;A expenses are
not allocated to the segments to be included in the measures reported to the chief
operating decision maker for purposes of decision-making. As required by paragraph
31 of SFAS 131, we have disclosed the asymmetrical allocation of these expenses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You indicate on page 41 that your expenses increased in 2004 compared to 2003 due partially
to audit costs expensed in 2004 that related to work performed in 2003. Please explain how
recognition of 2003 expenses in 2004 is reflective of accrual accounting and revise your disclosure
to clarify.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>During 2004, after the Company filed its 2003 Form 10-K, the Company&#146;s
auditors billed approximately $80,000 in additional fees for to the 2003 audit.
The auditors cited as the basis for the adjustment to the previously agreed-upon
2003 fee time that exceeded budget to audit the subsidiaries acquired in 2003.
Around the date of the filing of the 2003 10-K the auditors informed the Company of
potential budget overruns but</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>did not conclude what amount, if any, of additional fees they would seek to
collect, nor had any additional billings been discussed with the audit committee at
that point. Therefore the $80,000 in additional billings was not accrued as of
December&nbsp;31, 2003. We believe we have properly accounted for these additional fees
on a prospective basis as a change in the estimate for accrued audit fees and will
modify our future disclosure to delete the reference to 2003 expenses reflected in
2004.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Liquidity and Capital Resources, page 43</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your disclosure of long-term debt in the table on page 43 excludes interest payments.
Because the table is aimed at increasing the transparency of cash flow, please revise your
disclosures in future filings to include the amount of scheduled payments for interest you expect
on outstanding debt for all periods presented. Also, to the extent necessary, include footnote
disclosure of pertinent information necessary to understand assumptions used in calculating
interest, which may be variable, or other tabular amounts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>The schedule of contractual obligations in future filings will include
the amount of scheduled payments for interest we expect to incur on outstanding
debt for all periods presented along with footnote disclosure of the information
necessary to understand the assumptions used in calculating interest or other
tabular amounts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings please disclose information about your off-balance sheet arrangements
under a separately captioned section within MD&#038;A as required by Item&nbsp;303(a)(4) of Regulation&nbsp;S-K.
If you have no off-balance sheet arrangements, state that fact.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>We have no such off-balance sheet arrangements and will disclose
this fact in future filings.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please enhance your discussion with regards to cash flows provided by and used in
operating, investing, and financing activities. Please provide an analysis of the trends and
variability in your cash flows for the periods presented. For example, discuss the trend in cash
flows generated by operations and the reasons for the variability in accounts receivable and
inventories to the extent necessary for investors to ascertain the likelihood that past performance
is indicative of future performance. Refer to our Release No.&nbsp;33-8350.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>We will enhance our discussion of cash flows in future filings to
provide an analysis of the trends and variability in cash flows arising from our
operating, investing and financing activities.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Item&nbsp;9A Controls and Procedures, page 95</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please note that the evaluation date regarding the effectiveness of disclosure controls and
procedures is &#147;as of the end of the period&#148; covered by the quarterly or annual report as set forth
in Item&nbsp;307 of Regulation
S-B. Please revise your disclosure in future filings accordingly.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>An evaluation date &#147;as of the end of the period&#148; will be used in<BR>
Item&nbsp;9A disclosures in future filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 6</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Insurance Claim Receivable, page 61</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please discuss your accounting treatment of the property, plant and equipment impaired as a
result of Hurricane Ivan and indicate the amounts recorded on the financial statement line items.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>Hurricane Ivan destroyed or rendered useless Company plant and equipment
and spare parts inventories with net book values of $1,351,562 and $111,839,
respectively, as of the date of the hurricane. These assets were included in the
Company&#146;s insurance claim and removed from the balance sheet at their pre-hurricane
net book values and recorded as an expense component of the 2004 consolidated
statement of income line item &#147;Net insurance recovery from Hurricane Ivan.&#148; The
Company&#146;s remaining property, plant and equipment did not suffer significant
long-term impairment as such property had substantially been repaired and placed
back into service as of December&nbsp;31, 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please identify for us the types of expenses, in the amount of $1,078,099 related to the
rebuilding of the Cayman Island operations. Further, tell us if you are bound by certain terms,
agreements and or contracts to rebuild, and if so, whether a related liability was recorded.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>Amounts included in the $1,078,099 total represent incremental expenses
directly associated with the hurricane, and include such items as materials and
labor charges for repairs and clean-up, generator rentals, diesel fuel purchases,
basic supplies (food, water, tarps, flashlights, etc.), fees paid to insurance
adjusters, security services and other miscellaneous expenses. While the Company
was under no contractual obligations to rebuild, almost all rebuilding had been
completed as of December&nbsp;31, 2004 and the cost of the remaining repairs had been
accrued as of that date.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 11</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Intangible assets, page 64</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please tell us your basis for revaluing the carrying amount of the Belize Water Production
and Supply Agreement and the purchase transaction under which the intangible asset was initially
recorded. Further, tell us and disclose the amount of the adjustment
and accounts impacted. Show us what your disclosure will look like in future filings revised.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>The Company acquired its Belize subsidiary in 2000. Upon
acquisition the Company allocated approximately $2.1&nbsp;million of the purchase price
to the intangible asset associated with the subsidiary&#146;s contract with the Water
and Sewer Authority of Belize. The $2.1&nbsp;million was amortized over the remaining
10.75&nbsp;year life of the contract through mid-2003, at which time the parties to the
contract elected to renegotiate the terms of their relationship. In exchange for
an adjustment to the base revenue rate the customer agreed to sign a new contract
with a 23&nbsp;year term. At the time the new contract was signed, the intangible
asset&#146;s net book value after accumulated amortization was approximately $1.5
million. Upon execution of the new contract the Company began amortizing the
historical carrying amount of the intangible asset of $1.5&nbsp;million over the 23&nbsp;year
period of the new contract. Current filings do not include 2003 operating results
and thus the comparability of current to prior period results is not affected by
the renegotiation of the Belize contract. Consequently, our disclosures in future
filings will be revised to delete discussion of this contract&#146;s renegotiation and
present only the cost, estimated life, amortization expense and description of this
intangible asset.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 12 </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Goodwill, page 66</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please tell us and disclose in future filings the nature of the adjustment to goodwill and
intangible assets.<U> </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>In connection with the 2003 audit, the Company&#146;s auditors identified
three proposed reallocations of the purchase price paid for the Company&#146;s 2003
acquisitions: one relating to an initial undervaluation of an intangible asset, the
second relating to an initial overvaluation of an intangible asset, and the third
relating to an initial overvaluation of property, plant and equipment. The net
effect of recording these reallocations would be to increase goodwill by $172,622,
decrease intangible assets by $83,835, decrease minority interest by $8,889 and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>decrease property, plant and equipment by $97,676 as of December&nbsp;31, 2003. As
these adjustments had an immaterial balance sheet and income statement impact for
2003, the Company elected to review these proposed adjustments in greater detail
and make its own assessment before recording them. The Company completed its
review and decided to record these reallocations in the first quarter of 2004.
Future filings will disclose the nature of the $172,622 adjustment to goodwill
recorded in 2004.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 14</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Long term debt, page 68</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please disclose the terms of the restrictive debt covenants including, but not limited to,
whether or not the covenants place restrictions on the payment of dividends.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>Future filings will include a description of the terms of the
restrictive debt covenants.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 18</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Segment Information, page 71</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There appears to be an inconsistency in your use of parentheses with regards to income
tax. On the income statement for 2004 and 2003 you indicate the $(30,150) and $(23,743) as an
(expense)&nbsp;whereas in Note 18 the same amounts are indicated to be a benefit. Please revise as
necessary.<U> </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>We will correct this inconsistency in future filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 20</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Commitments, page 72</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note for your disclosure that the Company has guaranteed the performance of several
subsidiaries. Tell us whether or not the Company is currently performing as a guarantor as a
result of a default by any of the guarantees. In accordance with FASB Interpretation FIN No.45,
paragraph 13, please disclose in future filings the terms of the guarantees including the length of
time and the maximum potential future payments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>The Company is not currently performing as a guarantor as a result
of a default by any of the guarantees. Future filings will include the disclosures
required under FIN 45.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 22</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Taxation, page 77</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note the substantial majority of the net income of the company is currently not subject
to taxation. Explain to us how net income in 2005 resulted in an income tax benefit. Also, tell
us and revise your disclosure in future filings to indicate what locations are considered having
generated income before income taxes for domestic operations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>Only the Company&#146;s Barbados-based DesalCo (Barbados) Ltd. and
U.S.&#151;based Aquilex, Inc. subsidiaries are subject to income taxes on their
domestic operations. However, these subsidiaries did not generate taxable income
in years 2003-2005. The provision for income taxes reported for 2003-2004
represents withholding taxes due the Barbados government for management and other
related party fees charged to DesalCo (Barbados) Ltd. by another Company
subsidiary, DesalCo Limited. The tax benefit reported in 2005 represents an
overaccrual of the 2004 provision for withholding taxes for this subsidiary which
was reversed in 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon further review we believe such withholding taxes are more properly categorized
as other G&#038;A expenses and not income taxes as they are not based upon the income
generated by DesalCo (Barbados) Ltd. Due to the immateriality of the amounts
involved we propose to make this reclassification in future filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note 23</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Pension benefits, page 77</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You describe the pension plan as a defined contribution plan. On page 112 you describe
the plan as a defined benefit plan. Please revise the apparent inconsistency.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Response: </I>The pension plan is a defined contribution plan. The reference to
a defined benefit plan will be corrected in future filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Exhibit&nbsp;31</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The wording in each certification should be in the exact format provided by Item&nbsp;601 of
Regulation&nbsp;S-B. Please confirm that the inclusion of the title in the first line of each
certification for your CEO and CFO was not intended to limit the capacity in which such individuals
provided the certification in your Form 10-K for the year ended December&nbsp;31, 2005 and your Form
10-Q for the quarter ended March&nbsp;31, 2006.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Response</I>: We hereby confirm that the inclusion of the title in the first line
of each certification for our CEO and CFO was not intended to limit the capacity in
which such individuals provided the certifications in the above referenced filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with responding to your comments, Consolidated Water Company, Ltd. acknowledges
that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company is responsible for the adequacy and accuracy of the disclosure in the filing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>staff comments or changes to disclosure in response to staff comments do not foreclose the
Commission from taking any action with respect to the filing; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company may not assert staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please contact the undersigned at (954)&nbsp;571-3105 should you have any questions regarding these
responses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours truly,
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">David W. Sasnett<BR>
Chief Financial Officer</DIV>



<P align="center" style="font-size: 10pt">8
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
