"The PPP project will initially begin in a few areas of South Delhi within the next month covering a population of 6 lakh and then cover other areas of Delhi." she said.
The government had last week approved a long-pending proposal to involve private entities in management, maintenance and supply of water in several areas of the city.
The private entities will be involved in command areas of Malviya Nagar, Vasant Vihar and Nangloi underground reservoirs and water treatment plants under the PPP mode.
Officials said the reform has been initiated in consultation with the Planning Commission which had identified water sector reform as a priority area for the city.
They said the private sector would be involved in water distribution, management and maintenance of DJB's infrastructure in Malviya Nagar, Vasant Vihar and Nangloi areas in PPP mode and they will be paid a "fee" for their services.
Dikshit had for quite sometime been indicating about reforms in water sector on the lines of reform in power sector.
Addressing a function organised by FICCI, Dikshit also said Delhi government has already signed an agreement with Singapore government for setting up a water recycling plant which will provide potable water to people.