The story
Founded by Isabella II of Spain on Jun 18, 1851, in Madrid.1
The Y in the abbreviated form of the company's name is from the old spelling Ysabel for Queen Isabel II, during whose reign a modern water supply was provided for Madrid. A canal was constructed to provide water from the catchment of the river Lozoya.
The water entered the city through its northern suburbs using gravity.
From Wikipedia’s article on Canal de Isabel II, shared under CC BY-SA 4.0.3