ACTEW has changed its name to Icon Water, but will remain in state hands.

The ACT’s water utility was rebranded to avoid confusion with energy and gas firm ActewAGL.

ACT Chief Minister Andrew Barr says despite the rebranding, Icon Water was 100 per cent publicly-owned and would stay that way.

“I think people have an expectation that water utilities that are a natural monopoly will remain in public hands,” he said.

“But that is a very different situation from the more contested markets that we see in electricity and gas for example, which is why there is a difference in the ACT.”

Mr Barr said the reinvigorated water company would work on closer links with the Local Government sector.

“That's something we can ... discuss with surrounding councils who have a variety of water supply issues that they many need assistance with,” he said.

“Icon Water can assist with that. There's a growth opportunity for the business.”

Icon Water managing director John Knox said customers were often confused by the previous name.

“Our organisation has travelled under many names so it's just nice to have one name, one organisation and one direction moving forward,” he said.

“We'll slowly educate the community about the differences between the water businesses and the energy businesses... they are two distinct organisations.”