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<SEC-DOCUMENT>0000950144-06-010792.txt : 20070124
<SEC-HEADER>0000950144-06-010792.hdr.sgml : 20070124
<ACCEPTANCE-DATETIME>20061113161930
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950144-06-010792
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20061113

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>
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<HEAD>
<TITLE>Response letter</TITLE>
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<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">November&nbsp;13<B><I>, </I></B>2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>BY EDGAR AND FAX (202-772-9204)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549-3561

</DIV>

<DIV align="left" style="margin-top: 0pt">
<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">Attn:</TD>
    <TD>&nbsp;</TD>
    <TD>H. Christopher Owings<br>
Peggy Kim<br>
Scott Anderegg</TD>
</TR>
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="91%">
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    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Re:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Consolidated Water Co. Ltd.<br>
Registration Statement on Form&nbsp;F-3<br>
Filed October&nbsp;12, 2006<br>
File No.&nbsp;333-137970</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please find the following response of Consolidated Water Co. Ltd. (the &#147;Company&#148;) to the
comment of the staff of the Securities and Exchange Commission (the &#147;Staff&#148;) to the
above-referenced filing of the Company as set forth in the Staff&#146;s letter dated October&nbsp;20, 2006
(the &#147;Letter&#148;). For your reference, we have reproduced the comment from the Letter, followed by
the Company&#146;s response.
</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="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We note your disclosure in your Form 10-Q for the quarter ended June&nbsp;30, 2006 that your
subsidiary, Waterfields Company Limited, is not in compliance with its debt to equity ratio
financial covenant with a bank in the Bahamas. In light of this non-compliance, please provide
us with an analysis of whether you are eligible to use Form F-3 for this offering. In this
regard, please refer to General Instruction I.A.3(b)(i) of Form F-3 in your
analysis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><I>Response to Comment 1</I></U>:<BR>
To be eligible to use Form F-3, General Instruction I.A.3(b)(i) of Form F-3 requires that
neither a registrant nor any of its subsidiaries have, since the end of the their last
fiscal year, defaulted on any installment or installments of indebtedness for borrowed
money. As disclosed in the Company&#146;s Quarterly Report on Form 10-Q for the quarter ended
June&nbsp;30, 2006, the Company&#146;s subsidiary, Waterfields Company Limited (since renamed
Consolidated Water (Bahamas) Limited, &#147;CW-Bahamas&#148;), was not in compliance as of June&nbsp;30,
2006 with its debt-to-equity ratio financial covenant under its term loan with a bank in the
Bahamas. However, this non-compliance by CW-Bahamas was not a default on any installment of
indebtedness under the term loan, and accordingly, does not preclude the Company from
meeting the eligibility requirement to use Form F-3 set forth in General Instruction
I.A.3(b)(i) of Form F-3. As reported in the Company&#146;s Current Report on Form 8-K filed
October&nbsp;6, 2006, CW-Bahamas replaced this term loan with a new credit facility on October&nbsp;5,
2006.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
November&nbsp;13, 2006<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you require additional information, please contact the undersigned at (954)&nbsp;571-3105 or
Leslie J. Croland of Edwards Angell Palmer &#038; Dodge LLP at (954)&nbsp;667-6129.
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ David W. Sasnett
</DIV>


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

</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">Cc:</TD>
    <TD>&nbsp;</TD>
    <TD>Leslie J. Croland<br>
<I>Edwards Angell Palmer &#038; Dodge LLP</I></TD>
</TR>
</TABLE>
</DIV>


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