The development of municipal utilities have a direct bearing on public interest, public security, living quality and investment environment in the city as well as the sustainable development of the city and the region. This article begins with the analysis of the demand, hindrance and difficulties for the reforms in municipal utilities, compares and elaborate the advantages and disadvantages of various kinds of reforms, describes the critical processes of the reforms and expounds on the proper procedures for reforms and ways for supervision by giving the example of the problems with the current reforms.