The revised Perda of Sidoarjo Regency No.6 Tahun 2009 states that the Sidoarjo Regency will form the Sidoarjo Kota Baru area which functions as a housing, trade, and service area in Sukodono Subdistrict. Drinking water services in Sukodono Subdistrict 2017 were 32% using PDAM and 238 using HIPPAM. The realization of PDAM Delta Tirta’s revenue in 2018 did not reach the RKAP set, causing the limitations of PDAMs in the development of a 100% water supply network. The development of drinking water infrastructure that is technically, economically, and financially feasible but does not have a budget, can be submitted as a Kerjasama Pemerintah dengan Badan Usaha (KPBU) project. Based on these problems, it is necessary to conduct a feasibility study and investment risk analysis of the drinking water supply system using the KPBU concept. Based on the analysis, the investment in drinking water supply systems in Sidoarjo Kota Baru area with ready water quality is declared technically feasible using the KPBU concept referred from PT. Penjaminan Infrastruktur Indonesia.