Palm Water was created in 2005 as a 51:49 joint venture of Istithmar, part of Dubai World, and Hyflux. At the same time, an EPC contracting company, Hyflux Middle East, was created with the reverse shareholding structure.

The changes see Istithmar buying out the majority of Hyflux's stake in Palm Water, taking a 95 per cent share, with the Singaporean firm retaining the remainder. Hyflux Middle East will be incorporated into Palm. ACWa Services, the UK subsidiary of Athens-based Consolidated Contractors International Company (CCC), has taken over Hyflux Middle East's build-own-operate (BOO) contracts for two 32,000-cubic-metre-a-day desalination plants on Palm Jumeirah (MEED 20:1:06).