-----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,
 SsHLsI8aKI6pHnmBHmFtvRSLzGe8oSUNwSokfAs0anvIpnO7dRKmeAU4hkLG3cQH
 2JtLfzBSO4uf0VSMx3tOVQ==

<SEC-DOCUMENT>0000950144-07-010768.txt : 20071128
<SEC-HEADER>0000950144-07-010768.hdr.sgml : 20071128
<ACCEPTANCE-DATETIME>20071128170128
ACCESSION NUMBER:		0000950144-07-010768
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071122
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20071128
DATE AS OF CHANGE:		20071128

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25248
		FILM NUMBER:		071272161

	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>8-K
<SEQUENCE>1
<FILENAME>g10834e8vk.htm
<DESCRIPTION>CONSOLIDATED WATER CO. LTD.
<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 style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K<BR>
CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">November&nbsp;22, 2007<BR>
(Date of earliest event reported)
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CONSOLIDATED WATER CO. LTD.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Cayman Islands, B.W.I.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0-25248
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Not Applicable</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File No.)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The Regatta Office Park<BR>
Windward Three, 4<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor<BR>
West Bay Road, P.O. Box 1114<BR>
Grand Cayman KY 1-1102, Cayman Islands<BR>
(Address of Principal Executive Offices)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(345)&nbsp;945-4277<BR>
(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Not Applicable<BR>
(Former Name or Former Address, if Changed Since Last Report)
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instructions A.2. below):</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"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>
</TABLE>
</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"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>
</TABLE>
</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"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</TD>
</TR>
</TABLE>
</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"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</TD>
</TR>
</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</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 align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;8.01 Other Events.</B></DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Consolidated Water Co. Ltd. (the &#147;Company&#148;) owns 50% of the voting stock of Ocean Conversion (BVI)
Ltd. (&#147;OC-BVI&#148;), a British Virgin Islands company that sells water on a month-to-month basis to
only one customer, the British Virgin Islands Water and Sewer Department. The Company owns an
overall 43.5% equity interest in
OC-BVI and certain profit-sharing rights that raise the Company&#146;s
effective interest in <FONT style="white-space: nowrap">OC-BVI</FONT>
profits to 45.1%. The Company also receives revenues from a management
agreement with OC-BVI.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">As previously disclosed in the Company&#146;s reports filed with the Securities and Exchange Commission,
OC-BVI has been engaged in discussions with the British Virgin Islands government (&#147;BVI
Government&#148;) to enter into a new water supply agreement. During these discussions, the BVI
Government asserted a purported right of ownership of OC-BVI&#146;s desalination plant in Baughers Bay,
Tortola.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">As of September&nbsp;30, 2007, OC-BVI&#146;s accounts receivable from the BVI Government, relating primarily
to water sales for the nine months ended September&nbsp;30, 2007, totaled approximately $5.6&nbsp;million.
These accounts receivable represent amounts billed at the contract prices in effect before the BVI
Government asserted its purported right of ownership of the plant. However, the BVI Government
advised OC-BVI that it would only pay such amount of the accounts receivable and future billings
that, in the opinion of the BVI Government, approximate OC-BVI&#146;s costs of producing the water. At the BVI Government&#146;s proposed purchase
price, the BVI Government would pay only approximately 40% of the amounts billed by OC-BVI pending
the execution of a new water supply agreement.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Payments by the BVI Government to OC-BVI since the BVI Government&#146;s assumption of the reduced
purchase price have been sporadic and as of September&nbsp;30, 2007, OC-BVI has received payment for
less than 27% of the amounts it billed to the BVI Government for the months January&nbsp;2007 through
September&nbsp;2007. As a result of reduced payments made by the BVI Government, OC-BVI is presently
experiencing liquidity problems. OC-BVI has decided not to interrupt the supply of water to BVI
residents while its dispute with the BVI Government remains unresolved. Consequently, the Boards
of OC-BVI and the Company are presently evaluating possible solutions to OC-BVI&#146;s on-going
liquidity issues.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On November&nbsp;15, 2007, OC-BVI issued a demand letter to the BVI Government for approximately $6.2
million representing amounts that
<FONT style="white-space: nowrap">OC-BVI</FONT> claims are due by the BVI Government for water sold and
delivered plus interest and legal fees. In response to OC-BVI&#146;s demand for payment, the BVI
Government issued a letter dated November&nbsp;19, 2007 reasserting its claim that ownership of the
Baughers Bay plant has passed to the BVI Government and rejected OC-BVI&#146;s claim for payment.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">OC-BVI advised the BVI Government in correspondence dated November&nbsp;21, 2007 that it was demanding
that the dispute between OC-BVI and the BVI Government be submitted to arbitration pursuant to the
terms of the Deed of Agreement No.&nbsp;124 of 1990 dated May&nbsp;9, 1990, as assigned, extended and amended
between the parties. On the following day, OC-BVI&#146;s management was informed that the BVI
Government had filed a lawsuit with the</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</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 align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Eastern Caribbean Supreme Court seeking ownership of the Baughers Bay plant. OC-BVI has informed
the Company that it intends to vigorously pursue its rights to full payment for water sold and
delivered to the BVI Government and to defend against any action that the BVI Government owns any
interest in the Baughers Bay plant and that it believes this dispute will be resolved to its
satisfaction.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The Company cannot assure you that OC-BVI will be able to successfully resolve this dispute with
the BVI Government. For the year ended December&nbsp;31, 2006 and the nine months ended September&nbsp;30,
2007, the Company recognized approximately $1.4&nbsp;million and $1,361,000, respectively, in income
from the Company&#146;s equity investment in the earnings of OC-BVI and approximately $1.5&nbsp;million and
$538,000 in revenue, respectively, from the Company&#146;s agreement to provide management services to
OC-BVI. The Company also recognized approximately $508,000 and $540,000 in other income for the
year ended December&nbsp;31, 2006 and the nine months ended September&nbsp;30, 2007, respectively, from a
profit-sharing agreement that the Company has with OC-BVI. As of September&nbsp;30, 2007, the Company&#146;s
loan to, and equity investment in, OC-BVI totaled approximately $16.9&nbsp;million and the recorded
value of the Company&#146;s management services agreement, which is reflected on the Company&#146;s balance
sheet as an intangible asset, was approximately $856,000.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">If an arbitration panel or court determines that the BVI Government owns the Baughers Bay plant,
OC-BVI could lose its water supply agreement with the BVI Government and its ownership of the
Baughers Bay plant. The arbitration panel or court could also determine that OC-BVI is not
entitled to full payment of amounts previously billed to the BVI Government. In either case, the
value of the Company&#146;s OC-BVI-related assets would decline, and the Company would be required to
record impairment charges to reduce the carrying values of these assets. Such impairment charges
would reduce the Company&#146;s earnings and could have a significant adverse impact on the Company&#146;s
results of operations and financial condition.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In

July 2007, OC-BVI completed the construction of a new desalination plant located on Bar Bay,
Tortola in the British Virgin Islands at a total cost of
approximately $8&nbsp;million. OC-BVI constructed the plant in order
to service what it believes is an increasing demand for water in the
area surrounding the plant. The Company has
provided $2.9&nbsp;million in loans for the construction of this plant as of September&nbsp;30, 2007. As a
result of OC-BVI&#146;s dispute with the BVI Government over the Baughers Bay plant, OC-BVI may not be
able to obtain a water supply agreement from the BVI Government for the Bar Bay plant. If such an
agreement is not obtained, or is not obtained on sufficiently favorable terms, OC-BVI may not be
able to recover the costs of its investment in the plant, in which case the Company may be required
to record an impairment charge to reduce the carrying value of the Company&#146;s loan to OC-BVI and the
Company&#146;s investment in OC-BVI.</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->
</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 align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CONSOLIDATED WATER CO. LTD.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David W. Sasnett
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David W. Sasnett&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President and
Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: November&nbsp;28, 2007
</DIV>



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




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