Competition in today's business environment is very tight and every company vying with each other to be able to maintain its position from being eliminated from the competition. Elements that can't be separated from the success of an organization is performance. Good performance will indicates the success level of the company. Balanced Scorecard is a performance measurement method that was introduced by Robert Kaplan and David Norton. This type of research is descriptive research with quantitative approach. Performance appraisal of PDAM Kota Malang in 2012 – 2014 showing the overall results were pretty good. Results of learning and growth showed good results. Internal business perspective showed good results and continued to increase from year to year. Improvements to the quality and quantity of services that maximized the internal business perspective gives a good impact on the customer's perspective. But the financial perspective showing a whole decreased performance from year to year. Seen from the results of the four perspectives, financial perspective is the one that having most decreased result, especially for aspects of operational costs that continue to rise. It can be concluded that operational costs incurred by the company are used to support performance improvement in the other three perspectives.