China has emerged as one of the world’s most active markets for public–private partnerships (PPP) in the water sector, while the pace of such development globally has slowed in recent years. This article investigates the dynamics of the development of PPP projects in the Chinese water sector through comparative case studies. Our findings suggest that the unwavering pursuit of PPPs as a policy instrument by the central government, water sector reforms and the effective implementation of local governments are among key factors driving the impressive growth of PPP projects in China.