Veolia is the world's largest water company. Treatment and distribution of water accounts for about 40% of the turnover. It comprises municipal concessions, including the French domestic market and regulated water businesses in the US, Chile, and Catalonia. The water distribution activity is noncyclical and indexed to inflation. It deserves an economic moat thanks to efficient scale and the duration of the concessions, which are intangible assets. Water technologies account for about 25% of the water division. We believe it exhibits an economic moat due to switching costs, as the business features razor-and-blade dynamics that drive highly recurring revenue.