P PDAM Bandar Lampung City or commonly referred to as PDAM Way Rilau is a Regional Owned Enterprise (BUMD) of the Bandar Lampung City Government with the current number of customers reaching 33,433 subscription connections (SL). The level of drinking water service of PDAM Way Rilau, Bandar Lampung City until 2009, only reached 32.21%. To meet the service level of up to 60%, the Way Rilau PDAM in Bandar Lampung City is trying to develop by expanding the service area. For this reason, it is necessary to have investment cooperation in finding investors to be able to finance the development. In this study, we will discuss the selection of the right form of government-private cooperation based on financial feasibility for the development of a drinking water supply system at PDAM Way Rilau, Bandar Lampung City. Data — the data used include marketing aspects, technical aspects of production, government regulations etc. Then the data is processed so that SPAM reticana, investment components, and investment costs are obtained and a form of cooperation is selected based on the objectives and criteria needed in SPAM development. Selected Concession Option and BOT Option. Then two analyzes were carried out, the first was an analysis of the financial feasibility and each of the options for the form of cooperation that had been chosen. In the -financial feasibility calculated the value of NPV, IRR and Payback Period. The second analysis is the analysis of the selection of the form of cooperation using the hierarchical process analysis method. From the financial feasibility analysis process, the financial feasibility value of the concession option NPV = IDR 43.36 billion positive NPV, IRR = 22.38%: Higher than bank interest 14% Payback Period = 12 years. Financial Feasibility of BOT Option — Private NPV= Rp. 21.22 billion ; Positive NPV, IRR= 24.33% ; bigger than brine:a bank 14%, Payback Period= 9 years, Financial Feasibility of BOT Option — PDAM, NPV= Rp. 136.2 billion, IRR= 26.97%, Payback Period= 11 years. The results of the feasibility of the three OPsi can be said to be Eligible. The right form of cooperation is chosen based on the feasibility results using the ARP method. From the results of the hierarchical analysis of the process selected forms of cooperation Concession. Concession provides the largest relative objective value of 0-0.522 compared to other forms of cooperation, namely BOT consisting of PRIVATE BOT (0.294) and PDAM BOT (0.182). The form of the concession shows the maximum achievement of its relative objective value