<PAGE>   1
                                                                   EXHIBIT 10.24


                               SERVICES AGREEMENT

         This Services Agreement (this "Agreement") is made and entered into as
of May 1, 1999, between Enron Corp., an Oregon corporation ("Enron"), and Azurix
Corp., a Delaware corporation ("Azurix"). Azurix and Enron may hereinafter be
referred to individually as a "Party" or collectively as the "Parties."

                                   RECITALS:

         WHEREAS, Enron and Azurix desire by their execution of this Agreement
to evidence their understanding concerning the provision of certain services by
Enron to Azurix and its subsidiaries;

         NOW, THEREFORE, for and in consideration of the mutual promises and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto
hereby agree as follows:

         1. Services. In order to assist the continued and orderly conduct of
certain corporate functions currently performed by Enron and its affiliates for
the benefit of the Referenced Subsidiaries (defined below), Enron agrees to
provide and Azurix agrees to purchase, subject to the terms and conditions set
forth herein, certain corporate staff and support services, as identified in
Exhibit A attached hereto (collectively, the "Services"), in each case if and
only to the extent requested by Azurix except as to services relating to office
space which shall be substantially identical in nature and quality to the
Services provided by Enron to its wholly-owned subsidiaries.

         "Referenced Subsidiaries" shall mean Azurix and its subsidiaries from
time to time. Such subsidiaries shall initially include, without limitation,
those subsidiaries listed on Exhibit B.

         2. Term. This Agreement shall become effective and Enron shall make the
Services available to the Referenced Subsidiaries pursuant to the terms of this
Agreement for the period commencing on May 1, 1999, and terminating on the date
180 days following written notice by either party to the other (or earlier by
mutual written agreement); provided, however, (i) the Referenced Subsidiaries
shall remain responsible for all out-of-pocket costs and expenses incurred by
Enron (directly or through its other subsidiaries) pursuant to agreements
entered into for the benefit of the Referenced Subsidiaries that could not be
terminated prior to the date of termination of this Agreement, and (ii) upon the
mutual agreement of Azurix and Enron, services may be provided beyond the
termination date set forth in the notice in order to allow the Referenced
Subsidiaries the opportunity to make alternative arrangements for such services.
In the event any of the Services being performed hereunder are no longer
available, Enron, any Enron

<PAGE>   2


subsidiary or affiliate, then Enron shall be relieved of its obligations under
this Agreement to provide that particular Service to the Referenced
Subsidiaries. The foregoing shall include any cessation of or failure of
Services due to Year 2000 problems. Enron will advise the Referenced
Subsidiaries of any cessation of Services and shall use commercially reasonable
judgement in assisting the Referenced Subsidiaries in securing alternative
services for the Referenced Subsidiaries.

         3. Nature and Quality of Services. The Parties understand and agree
that the Services shall be substantially identical in nature and quality to the
Services provided by Enron to its wholly-owned subsidiaries.

         4. Payment. Azurix, as compensation for the performance of the
Services, agrees to reimburse Enron for: (i) all expenses actually incurred by
Enron and readily identifiable to the Referenced Subsidiaries relating to the
Services ("Direct Charges"), which calculation shall be based on the cost of
such Services to Enron and charged to the Referenced Subsidiaries in the same
manner as costs charged to other Enron subsidiaries or affiliated companies and
in accordance with the charge bases identified on Exhibit A, if applicable; (ii)
the actual cost of any goods or services purchased specifically for the
Referenced Subsidiaries by Enron from third parties unaffiliated with Enron
("Operating Charges"); (iii) the actual cost or charge for outsourced services
provided by any third party unaffiliated with Enron specifically for the
Referenced Subsidiaries under an Enron or Enron affiliate agreement with such
third party ("Outsourced Charges"); (iv) an allocation of services related to
office space similar to that charged by Enron to its wholly-owned subsidiaries
("Space-Related Charges") and (v) an overhead allocation to the Referenced
Subsidiaries of administrative and general expenses of Enron corporate staff and
support services reasonably related to the amount of such services provided to
the Referenced Subsidiaries for which Azurix does not receive Direct Charges
("Allocated Charge"). Such Allocated Charge shall be payable in monthly
installments.

         If the compensation for the Services does not include sales, use,
excise, value-added or similar taxes, and if any such taxes are imposed on the
Services after the effective date of this Agreement, then such taxes shall be
promptly paid by Azurix.

         Any change in the methodology due to regulatory, accounting or legal
reasons, to be used for determining any Direct Charges, Operating Charges,
Outsourced Charges, Space-Related Charges, Allocated Charges or any other charge
for Services provided by Enron, any Enron affiliate or third party,

                                        2

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for the Referenced Subsidiaries from that being used on the effective date of
this Agreement shall be deemed agreed to by Azurix without the necessity of
getting Azurix's consent so long as such changes are in good faith and are
charged or allocated to the Referenced Subsidiaries in the same manner as to the
other Enron subsidiaries or affiliated companies.

         5. Invoicing. Enron shall invoice Azurix by the 15th working day of
each month for all Direct Charges, Operating Charges, Outsourced Charges,
Space-Related Charges, and Allocated Charges, all with respect to the preceding
month. All invoices shall reflect in reasonable detail a description of the
Services performed during the preceding month, and shall be due and payable on
the last day of the month of the invoice. In the event of a dispute as to the
propriety of invoiced amounts, Azurix shall pay all undisputed amounts on each
invoice, but shall be entitled to withhold payment of any amount in dispute and
shall promptly notify Enron of such dispute. Enron or its applicable affiliate
shall provide Azurix with records relating to the disputed amount so as to
enable the Parties to resolve the dispute. Azurix shall pay interest at an
annual rate of 18% on any disputed amounts which it should have paid but
withheld.

         6. Confidentiality. Each party shall exert the same efforts and
maintain the same precautions that it exerts and maintains with respect to its
own confidential and proprietary information with respect to all information
received from the other party in connection with the performance of the
Services; provided, however, that a party may disclose such information (i) if
required to do so by applicable laws, rules, regulations, or orders (including
any laws, rules, regulations or orders to which either party voluntarily
subjects itself and any applicable securities exchange rules), or (ii) if such
information was or becomes generally available to such party on a
non-confidential basis, provided that the source of such information was not
known by such party to be bound by a confidentiality obligation.

         7. Information from Azurix. Any information necessary for Enron or any
third party to perform any Services shall be submitted by Azurix in a manner
consistent with the practices utilized by the Referenced Subsidiaries during the
period immediately prior to the effective date of this Agreement, which manner
shall not be altered except by mutual written agreement of the Parties. Should
Azurix's failure to supply such input render Enron's or any third party's
performance of any Services unreasonably difficult, Enron or such third party,
upon reasonable notice to Azurix, may refuse to perform such Services until such
input is supplied.

         8. Sole Beneficiaries. Azurix acknowledges that the Services shall be
provided only with

                                        3

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respect to the business of Azurix and its subsidiaries or affiliates. Azurix
will not request performance of any Services for the benefit of any entity other
than Azurix and its subsidiaries or affiliates. Azurix represents and agrees
that it will use the Services only in accordance with all applicable federal,
state and local laws and regulations and communications and common carrier
tariffs, and in accordance with the reasonable conditions, rules, regulations
and specifications which may be set forth in any manuals, materials, documents
or instructions in existence on the effective date of this Agreement and
furnished by Enron to Azurix. Enron reserves the right to take all actions,
including termination of any particular Services, that Enron reasonably believes
to be necessary to assure compliance with applicable laws, regulations and
tariffs. Waiver by Enron of any of the provisions of this Agreement shall not be
construed as a waiver of such provision generally or of the right of Enron
thereafter to enforce each and every such provision.

         9. User Codes and Passwords. Enron will assign to the Referenced
Subsidiaries all user codes, passwords or numbers, or other control or
identifying cards or numbers, necessary for Enron to perform the Services.
Azurix assumes full responsibility for selection and use of any such codes,
passwords, cards or numbers that may be permitted or required in connection with
the Services involved.

         10. LIMITED WARRANTY; LIMITATION OF LIABILITY. ALL PRODUCTS OBTAINED
FOR THE REFERENCED SUBSIDIARIES ARE AS IS, WHERE IS, AS TO ENRON, WITH ALL
FAULTS, OTHER THAN FAULTS DUE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
ENRON. NEITHER ENRON NOR ANY ENRON AFFILIATE PERFORMING ANY SERVICES HEREUNDER
MAKE ANY WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING
THE WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT
TO THE SERVICES RENDERED FOR OR PRODUCTS OBTAINED FOR THE REFERENCED
SUBSIDIARIES, INCLUDING WITHOUT LIMITATION THOSE RENDERED BY OR OBTAINED FROM A
THIRD PARTY. NOTWITHSTANDING THE FOREGOING, TO THE EXTENT A WARRANTY PROVIDED BY
A THIRD PARTY MANUFACTURER OR PROVIDER OF GOODS OR SERVICES TO ENRON OR ITS
AFFILIATES CAN BE PASSED-ON TO THE REFERENCED SUBSIDIARIES, NOTHING HEREIN IS
INTENDED TO LIMIT SAME AND THE REFERENCED SUBSIDIARIES SHALL HAVE THE RIGHT TO
THE BENEFITS

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(SUBJECT TO THE TERMS AND CONDITIONS THEREOF) OF ALL SUCH THIRD
PARTY WARRANTIES.

         IN NO EVENT SHALL EITHER ENRON OR THE REFERENCED SUBSIDIARIES BE LIABLE
TO THE OTHER PARTY OR ANY OTHER PERSON FOR ANY INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES RESULTING FROM ANY ERROR IN THE PERFORMANCE OF SERVICES OR
FROM THE BREACH OF THIS AGREEMENT, REGARDLESS OF FAULT. TO THE EXTENT ANY THIRD
PARTY HAS LIMITED ITS LIABILITY TO ENRON FOR SERVICES UNDER AN OUTSOURCING OR
OTHER AGREEMENT, THE REFERENCED SUBSIDIARIES AGREE TO BE BOUND BY SUCH
LIMITATION OF LIABILITY FOR ANY PRODUCT OR SERVICE PROVIDED TO ENRON BY SUCH
THIRD PARTY UNDER SUCH AGREEMENT.

         11. Force Majeure. Enron shall have no obligation to perform the
Services if its failure to do so is caused by or results from any act of God,
governmental action, natural disaster, strike, failure of essential equipment,
Y2K problem, or any other cause or circumstance beyond the control of Enron.
Enron agrees that upon restoring service following any failure of any equipment
necessary for Enron or its affiliates to provide any Services, Enron will allow
the Referenced Subsidiaries to have equal priority, in accordance with prior
practice, with respect to access to the restored service.

         12. Severability. In the event any portion of this Agreement shall be
found by a court of competent jurisdiction to be unenforceable, that portion of
the Agreement will be null and void and the remainder of the Agreement will be
binding on the Parties as if the unenforceable provisions had never been
contained herein.

         13. Assignment. This Agreement shall not be assignable by either of the
Parties hereto except by operation of law or with the written consent of the
non-assigning Party.

         14. Entire Agreement; Amendment. This Agreement constitutes the entire
agreement of the Parties relating to the performance of the Services and all
prior or contemporaneous written or oral agreements are merged herein. This
Agreement may not be amended or otherwise modified except by a writing signed by
both Parties.

         15. Choice of Law. This Agreement shall be governed by the laws of the
State of Texas, without regard to any conflict-of-law rule or principle that
might refer the construction or interpretation of

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this Agreement to the laws of another state.

         16. Notice. Any notice, request, instruction, correspondence or other
document to be given hereunder by either Party to the other (herein collectively
called "Notice") shall be in writing and delivered personally or by facsimile,
as follows:

         If to Enron:   Enron Corp.
                        1400 Smith Street
                        P. 0. Box 1188
                        Houston, Texas 77251-1188
                        Attention: Senior Vice President, Chief Accounting and
                                   Information Officer
                        Facsimile No.: 713-853-3920
                        With a copy to: Senior Vice President and
                                        General Counsel
                        Facsimile No.: 713-853-3920

         If to Azurix:  Azurix Corp.
                        333 Clay Street 10th Floor
                        Houston, Texas 77002
                        Attention:  Chief Accounting Officer
                        Facsimile No. 713-345-5154
                        With a copy to: General Counsel
                        Facsimile No. 713-345-5330

Notice given by personal delivery shall be effective upon actual receipt by the
Party to whom addressed. Notice given by facsimile or telegram shall be
effective upon actual receipt if received during the recipient's normal business
hours, or at the beginning of the recipient's next business day after receipt if
not received during the recipient's normal business hours. Any Party may change
any address to which Notice is to be given to it by giving Notice as provided
above of such change of address.

         17. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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         IN WITNESS WHEREOF, the Parties hereto have caused this Services
Agreement to be signed on their behalf by their duly authorized officers.

                              ENRON CORP.



                              By: /s/ RICHARD A. CAUSEY
                                 ------------------------------------------
                              Name:  Richard A. Causey
                              Title: Senior Vice President and Chief Accounting
                                        and Information Officer

                              AZURIX CORP.



                              By: /s/ EDWARD N. ROBINSON
                                 ------------------------------------------
                              Name:  Edward N. Robinson
                              Title: Executive Director


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<PAGE>   8


                                    EXHIBIT A

<TABLE>
<CAPTION>

 ENRON RC #

                         COMPANY #  901                     CHARGE BASES
                         --------------
<S>                      <C>                                <C>
         581             Facility Maintenance               Azurix's Floor Space - Square Feet*
         629             Corporate Security                 Azurix's Floor Space - Square Feet*
         898             Building Services                  Azurix's Floor Space - Square Feet*
         2234            Facility Operations                Azurix's Floor Space - Square Feet*
          75             ECAS Administration                Azurix's Usage of Services
         566             Construction                       Azurix's Usage of Services
         580             Facility Planning                  Azurix's Usage of Services
         692             Churn/Relocation                   Azurix's Usage of Services
         703             Audio Visual & Locks               Azurix's Usage of Services
         1829            International Security             Azurix's Usage of Services
         2334            Bus/Parking Subsidy                Azurix's Usage of Services
         2441            ABS Utility                        Azurix's Usage of Services
         2455            Rent                               Azurix's Floor Space - Square Feet*
         746             Furniture                          Azurix's Usage of Services
      0781/0782          Aviation                           Azurix's Usage of Services
         103             Shipping/Receiving                 Azurix's Usage of Services
         228             Copy Center                        Azurix's Usage of Services
         492             Mail Center                        Azurix's Usage of Services
         586             Concierge Services                 Azurix's Usage of Services
         2255            Convenience Copiers                Azurix's Usage of Services
         2453            Cafeteria                          Azurix's Usage of Services
         215             Records                            Azurix's Usage of Services
         0508            Real Estate                        Azurix's Usage of Services
         0502            Travel                             Azurix's Usage of Services
                                                            Azurix's Usage of Services or occasioned by
         0752            Legal                              Azurix

                         *sublease or lease covered by separate agreement;
                         space-related charges as per Sections 1, 4, and 5.


                         COMPANY # 001 ENRON MANAGEMENT COMPANY
                         --------------------------------------
      0208/0649          Compensation/Benefits              % of Benefits


                         COMPANY # 011 ENRON CORP.
                         -------------------------
      1140/1284          Enron Events                       % of Downtown HC
    658/1946/1949        Development & Training             Azurix's Usage of Services
         2397            Employee Communications            % of total employees
         319             VP - Compensation/Benefits         % of Headcount
         2326            Stock Option Plan                  Grant Elections
 0071/2242/0632-0246     Human Resources                    % of Headcount New Hires
         2349            Audit Fees                         Direct
 0647/2453/2454/2460     Wellness                           % of Downtown HC
         610             Corp. Secretary                    # of Companies - Legal Entities

 0866/1263/1264/1956     REGULATORY AFFAIRS                 Azurix's Usage of Services/Allocation

                         MARKETING AFFAIRS                  Azurix's Usage of Services/Allocation

                         COMPANY # 969 ECM
                         -----------------
         2411            Insurance                          Prop. Val./Rev/HC
         451             Treasurer
                         Bank Fees
         1990            Vehicle Funding


                         RISK ASSESSMENT & CONTROL
 0258/0826/1128/1129/
 1130/1131/1281/1958                                        Azurix's Usage of Services

                         INFORMATION TECHNOLOGY             % of Headcount
</TABLE>

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<PAGE>   9


Other Services:

o        From time to time, the Referenced Subsidiaries shall utilize the
         international offices of Enron and its affiliates for certain projects,
         in each case subject to the mutual agreement of Azurix and Enron or its
         affiliates, as applicable.

o        Such other services to be mutually agreed by Azurix and Enron.

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<PAGE>   10



                                    EXHIBIT B

Azurix Jose Holdings Ltd.
Azurix Jose Investment Ltd.
Azurix Jose Ltd.
Enron Argentina Holding Inc.
Azurix Misiones SRL
Azurix Cancun B.V.
Azurix Cancun SRL
Enron Water Israel Ltd.
Azurix Suez Ltd.
Azurix Colombia Holdings Ltd.
Azurix Colombia Investments Ltd.
Azurix Colombia Ltd.
Azurix Isla Mujeres B.V.
Operadora de Buenos Aires SRL
Operadora de Misiones SRL
Azurix Mendoza Water Investments Ltd.
Azurix Chengdu Holdings Ltd.
Azurix Chengdu Ltd.
Azurix Misiones Holdings Ltd.
Azurix Misiones Ltd.
Azurix U.K. Ltd.
Azurix Rio Holdings Ltd.
Azurix Rio Investments Ltd.
SPE-Sociedade PAULISTA de Energia Ltda.
SEC-Sociedade Carioca de Energia Ltda.
Azurix Kuwait Ltd.
Azurix AGOSBA Holdings Ltd.
Azurix AGOSBA Ltd.
Azurix AGOSBA SRL
Azurix Chaoyang Water Holdings Ltd.
Azurix Chile Holdings Ltd.
Azurix Chile Ltd.
Azurix Suzhou Water Holdings Ltd.
Azurix Vietnam Holdings Ltd.
Azurix Vietnam Investments Ltd.
Azurix Vietnam Ltd.
Azurix Jordan Ltd.
Azurix Lebanon Ltd.
Azurix Tangiers Ltd.
Azurix Philippines Holdings Ltd.
Azurix Philippines Investments Ltd.
Azurix Philipppines Ltd.
Azurix Guam Corporation
Azurix Panama Holdings Ltd.
Azurix Panama Investments Ltd.
Azurix China Holdings Ltd.
Azurix China Investments Ltd.
Azurix Projects Holdings Ltd.
Azurix Projects Ltd.
Azurix Saigon Holding Co.
Azurix Saigon Ltd.
Azurix Ltd.
Azurix Europe Ltd.
Wessex Water Ltd.
Wessex Water Services Ltd.


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