Water for cities and towns

About water for cities and towns

Most people in NSW live in cities and towns and receive drinking water and wastewater services from public or private water utilities. For our communities to continue to thrive, it is vital that safe, affordable, and sustainable water supplies and wastewater services are secured now and into the future.

The department provides strategic leadership in planning, delivering and monitoring strategies and projects to meet these goals for residential, industrial and commercial customers. This includes managing the urban water cycle as an integrated system – encompassing water supply, wastewater, stormwater, water sensitive urban design, recycled water and other alternative water sources. 

The urban water cycle

When urban areas are built, they disrupt the natural water balance, altering flows and degrading water quality. This can have impacts on habitat, biodiversity, flooding, groundwater levels, soil moisture and vegetation growth. 

In an urban area, water needs to be supplied to the population and wastewater and stormwater needs to be managed. Supplying water can increase reliance on water transported from outside the immediate area and increase vulnerability during drought. Managing wastewater and stormwater is integral because urbanisation increases the volume and frequency of poor quality, stormwater runoff. As stormwater flows over impervious surfaces it collects pollutants and carries them into waterways where they degrade water quality and aquatic ecosystems. After treatment, wastewater is returned to the environment, typically discharging it to rivers or the ocean. 

Water and wastewater services in NSW’s cities and towns, and who is responsible

‘Cities and towns’ refer to metropolitan and coastal areas as well as smaller regional cities and towns across the state. 

State-owned corporations provide drinking water and wastewater services and manage drinking water catchments, in Greater Sydney, Hunter and Broken Hill regions through:

• Sydney Water
• Hunter Water
• Essential Energy, via its water supply authority Essential Water  
• WaterNSW

Local water utilities provide drinking water and wastewater services to cities and towns in local government areas outside Greater Sydney, Hunter and Broken Hill regions. There are 89 council-owned and operated local water utilities that provide these services. 

Private water utilities provide drinking water, recycled water, and wastewater services to residential, commercial, and industrial developments in metropolitan and regional NSW. Private water utilities are regulated under the Water Industry Competition Act. 

How we work 

The department plays a central role in policy reform and the regulation of water for cities and towns. The department works closely with the Minister for Water, utilities, independent regulators, the community and other stakeholders to ensure that drinking water catchments are managed appropriately and that high quality water and wastewater services are provided in a cost-effective manner to customers. 

The Minister for Water has responsibilities and powers under legislation that relate to the provision of water and wastewater services to cities and towns. 

Water utilities own, manage and deliver water infrastructure and services to cities and towns across the state. 

The Independent Pricing and Regulatory Tribunal (IPART) is the independent regulator for state-owned corporations, Central Coast Council, Essential Water and private water utilities. IPART regulates prices and performance of these utilities, conducts regular operating licence reviews and recommends new licences to the Minister for Water.