A system overhaul is set to improve water affordability, availability and reliability across New South Wales.
Over the next two years, the NSW Government will explore a new funding model for local water utilities to address critical inefficiencies with the current system of project-based capital grants.
The reform is part of the Town Water Risk Reduction Program, which recently received a $15 million boost to help improve delivery of water and sewerage services in rural and remote towns.
In 2023, the NSW Government called for a Review of Funding Models for Local Water Utilities to investigate new models that could help reduce service risks without privatisation or forced amalgamations.
Key areas of reform include improving cost-of-living support through a review of the customer affordability and hardship programs funded directly by the NSW Government; implementing a better funding model that gives the state’s 92 LWUs greater long-term financial stability and directs government funding to where it is most needed; and establishing basic levels of service through sector reform.
The plan was developed following extensive consultation with LWUs, water agencies and industry partners.
Minister for Water Rose Jackson said the government is committed to ensuring every person in New South Wales always has access to high-quality drinking water and wastewater, no matter what postcode they call home.
“This work builds on the $32.8 million for the Town Water Risk Reduction Program to tackle the most severe risks to town water, now we have a plan to safeguard the cost of service delivery,” she said.
“The previous funding model put our most remote communities at a disadvantage, where the economics of a small customer base servicing a huge land area just don’t add up.
“This plan provides a roadmap to direct government funding where it’s needed most and lock in the future of town drinking water in every corner of New South Wales.”
