What is recycled water?
Recycled water is water that has been treated to remove contaminants so it can be used again. Recycled water is one option available to make our water supplies for cities and towns more reliable and resilient.
Fact sheet
This fact sheet describes and evaluates recycled water as a water source option for cities and towns in NSW.
The Recycled Water Roadmap
The Recycled Water Roadmap is leading the way to expand recycled water across NSW.
It sets out the NSW Government’s vision for expanding water reuse across the state, ensuring a robust policy and regulatory framework is in place for future projects. It builds on a range of NSW Government policies and strategies that promote the safe and beneficial use of recycled water.
Documents
| Date | Document name |
|---|---|
| 26 June 2025 | Recycled water roadmap - June 2025 (PDF, 2.52 MB) |
| 01 August 2026 | A demonstrated commitment to recycled water – NSW Government policies and strategies - Fact sheet (PDF, 144.3 KB) |
This factsheet lists the NSW Government policies and strategies that support the use of recycled water.
Roadmap works/actions completed
The NSW Government is committed to delivering the 14 actions outlined in the Roadmap. Read on to learn more about our work and the progress we have made to date.
First published in 2024, the Water conservation cost-benefit analysis (CBA) guidelines provide an economic tool for water utilities to use when identifying and deciding which water conservation measures will best serve their communities.
Under Action 2.2 of the Roadmap, we have published a new addendum to these guidelines that focuses on evaluating recycled water initiatives. The addendum outlines a consistent approach to undertaking CBAs for water recycling projects, including stormwater harvesting. It provides a step-by-step methodology for assessing costs and benefits, with a focus on wastewater and stormwater recycling investments, and includes a catalogue of values to support economic evaluation. This guidance aims to improve consistency and transparency in the economic assessment of water recycling projects across NSW.
For more information about the Water conservation cost-benefit analysis guidelines, click here.
Responsibility for and oversight of recycled water is shared across several NSW Government departments and regulators. In recognition of this shared responsibility, the department has established a cross-government Recycled Water Coordination Committee to support the expansion of water recycling across NSW.
For more information about the committee, click here.
Work in progress
-
Review of incentive programs to increase use of recycled water
This literature review is investigating potential incentive programs to increase the use of recycled water in NSW. We are looking at different examples across Australia and internationally and the key findings will be considered in the NSW context.
-
Updated NSW Guidelines for Recycled Water Management Systems and recycled water information sheets
Local water utilities will be able to use these new guidelines and the accompanying 13 information sheets to meet the approval requirements for recycled water schemes.
-
Map of water recycling schemes in NSW
The interactive map will identify where current water recycling schemes are currently operated and where there may be future capacity for water recycling in NSW.
-
Commercial recycled water user guide
This guide will explain how large water users, such as industrial facilities, agricultural enterprises, and commercial operators, can approach local water utilities in their area to obtain a recycled water or treated effluent supply.
Frequently asked questions
Responsibility for and oversight of recycled water is shared across several NSW Government departments and regulators.
- Water is our most precious resource. Climate change means that NSW will confront more frequent and more severe droughts, higher temperatures and more storm events. To prepare, cities and towns will need to transition to more secure water supply options, diversify water sources and increase the proportion of water that does not depend on rainfall. This includes increasing water recycling.
- By being water wise and recycling more water in our urban environments, we can secure water supplies to meet the needs of growing communities.
The NSW Government vision is that:
- utilities will consider recycled water equally with other supply and demand options
- increased delivery of recycled water solutions will improve diversity, resilience and environmental water quality
- communities will understand water recycling options and engage with utilities in the conversation on purified recycled water for drinking.
- The Roadmap outlines the government’s vision for expanding water reuse across the state, ensuring a robust policy and regulatory framework is in place for future projects.
- It includes 14 proposed actions across 5 key priority areas to address barriers and pave the way for increased and expanded recycled water use in future, including for drinking and non-drinking purposes, where it is safe, beneficial and cost-effective.
- The Roadmap actions are to be delivered by June 2027, with ongoing monitoring to identify new opportunities beyond the Roadmap.
The barriers identified in the Roadmap were developed through consultation with Sydney Water, Hunter Water, WaterNSW, private and local water utilities, local councils, peak bodies, academics and relevant government agencies.
The barriers are categorised in 7 broad areas:
- Governance and regulation.
- Economics and pricing.
- Investment risks.
- Community acceptance.
- Skills and capabilities.
- Integration with land use planning.
- Environmental challenges.
You can read more about these barriers in the Recycled Water Roadmap.
The Roadmap set out 14 actions across 5 key priority areas:
- Priority area 1: Putting in place state-wide planning and policy frameworks that support integrated planning for recycled water.
- Priority area 2: Providing tools and resources to support planning and delivery of recycled water solutions.
- Priority area 3: Creating clear regulatory and approvals processes for recycled water.
- Priority area 4: Building capacity and capability across the water sector to plan and deliver innovative recycled water solutions.
- Priority area 5: Taking steps now so that purified recycled water is an option for our future drinking water supply.
The department will undertake an evaluation of the Roadmap in 2027 to assess its impact in 5 areas: effectiveness, efficiency, appropriateness, legacy and equity.
In 2023-24 NSW, public, local and private water utilities produced 82.8 gigalitres (GL) of recycled water (this is about the same amount of water that 46,000 homes use in a year).
This recycled water was used for non-drinking purposes such as:
- irrigation for gardens, open public spaces and in agriculture
- commercial uses such as washing hard surfaces, dust suppression, and cooling of buildings
- domestic use for toilets and washing machines
- firefighting.
All recycled water supplied by a water utility must meet Australian Guidelines for Water Recycling.
Water recycling can deliver a range of benefits now and into the future. We know we need to make better use of our water resources, think innovatively and find ways to deliver liveable communities and fast-track housing for a growing population. The benefits include:
- Increasing water security and resilience
- Reducing reliance on drinking water and supporting urban greening
- Reducing wastewater discharge to waterways and pressure on wastewater systems
- Contributing to energy creation, resource recovery and circular economy
- Supporting new industries with fit-for-purpose water
- Managing local flooding
Recycled water can be a key part of our future water supplies, and delivering the Roadmap will put us on the path to unlocking the benefits.
- Purified recycled water is recycled water that is further treated to ensure that it is safe for human consumption. Currently there are 40 cities in the world, including Perth, where purified recycled water is used in the drinking water supply.
- Although we know purified recycled water is safe to drink, extensive community engagement is required to gain public trust and confidence in the safety of the water for consumption. Stringent water quality assurance programs and approvals need to be in place before water is provided to consumers.
- Sydney Water, Hunter Water and some regional water utilities are currently engaging with their customers on the future of their water supplies, including discussion on adding purified recycled water into their drinking water supplies.
- The Roadmap includes actions to clarify the regulatory frameworks across NSW government agencies, engage with industry and research sectors and to support utilities to undertake best practice engagement with their customers on purified recycled water, learning from interjurisdictional and overseas experience.
The NSW Government undertook extensive consultation with Sydney Water, Hunter Water, WaterNSW, private and local water utilities, local councils, peak bodies, academics and relevant government agencies to develop the Roadmap.
The What we heard report and What we heard summary details the valuable feedback that we received on the draft Roadmap from the survey, written responses and webinars.
The key themes that emerged from the feedback were that the final Roadmap should:
- acknowledge the role that local councils and private sector utilities play in the delivery of recycled water infrastructure
- make clearer links to Integrated Water Cycle Management and Circular Economy principles
- consider how recycled water can contribute to greening and urban cooling, including in the context of new housing developments
- place more emphasis on the importance of engagement and education
- provide greater clarity on timeframes and actions.
In general, a vast majority of the feedback supported government taking more action to increase water recycling in NSW, with some saying that they would like to see the visions and actions go further.
Helpful recycled water resources
- Recycled water factsheet: Describes and evaluates recycled water as a water source option for cities and towns in NSW.
- Alternative water source options: Describes safe water supply options, including water recycling.
- Local Water Utilities: Apply for water treatment and sewerage works approvals – Local water utilities are required to obtain approval for water supply and sewerage works, including water recycling schemes.
- NSW Health: Wastewater management and water recycling – NSW Health protects public health, regulates drinking water suppliers for quality, and provides guidance and advice to manage water quality risks, including for recycled water.
- NSW IPART: Private Water Utilities (WIC Act) – IPART administers the licensing of private water utilities in NSW under the Water Industry Competition Act 2006 (WIC Act), including for recycled water.
- NSW EPA: Water policies, guidelines and programs – NSW EPA is the primary regulator when recycled water is reused on land, via the NSW resource recovery framework. Their website includes information on the use of effluent by irrigation and use and dispo
- Water360: Provides several resources about safe water supply options, including water recycling.
- Circular Design Guideline for Water Treatment Plant: This guideline provides practical guidance for embedding circular economy principles into the planning, design, procurement, construction, operation and decommissioning.
Contact us
For more information call us on 1300 081 047 or email us at water.enquiries@dcceew.nsw.gov.au