IPART is reviewing the maximum prices that WaterNSW can charge for its rural bulk water services. The prices we set in this review will apply from 1 July 2026.
We recognise that access to safe, reliable and affordable water at a fair price is critical to our communities, environment and economy.
This review examines the costs of WaterNSW’s rural valleys operations and determine prices for coming years that appropriately balance what customers can afford to pay for bulk water with the efficient level of revenue needed for WaterNSW to remain financially sustainable while meeting its obligations.
This review builds on the work on the work we undertook in our review of WaterNSW regional and rural bulk water prices from 2025 which resulted in a 1-year determination. During that review, we identified the need to identify whether:
- WaterNSW’s base costs are efficient
- The impactor pays principle and resulting cost shares remain appropriate
- WaterNSW’s pricing structures for its rural water business provide the appropriate signals and outcomes for its bulk water customers.
The Tribunal is now undertaking a more detailed examination of these matters and considering all other matters required under the IPART Act, when reviewing water prices, including:
- the cost of providing the service
- consumer protection against abuse of monopoly power by a water utility
- the need for greater efficiency in the supply of the service to reduce costs to consumers and taxpayers.
- appropriate rates of return on public sector assets
- the social impact of our determinations
- the need to maintain ecologically sustainable development and protect the environment.
We have published our Draft Report
Under our draft decisions WaterNSW’s bulk water charges would increase by up to 10% per year plus inflation over the next three years, from 1 July 2026.
IPART has considered the affordability of WaterNSW’s prices and the potential impacts of price increases on customers, particularly in the current environment of economic uncertainty and elevated input costs across the regional and rural economy. We recognise that there is limited capacity for many customers to absorb ongoing real increases in water charges.
To manage these impacts, we have made draft decisions to maintain valley-based pricing and to cap annual price increases at a maximum of 10% per year before inflation.
For customers subject to Murray-Darling Basin Authority and Border Rivers Commission charges, these price increase caps have been applied inclusive of these charges.
We have reviewed WaterNSW’s cost-sharing framework and propose a revised approach to allocating costs between customers and the NSW Government, including for activities that provide broader public benefits. Under the revised framework, customers would cover 100% of water delivery and operations, while dam safety and environmental planning costs would be split 50/50 with the NSW Government, recognising their broader public benefits. We have also proposed to increase the Government share for the Hunter and Macquarie valleys, in recognition of the flood mitigation benefits provided by their dams.
These draft prices are lower than those proposed by WaterNSW and reflect IPART’s assessment of efficient costs, appropriate cost sharing, and the need to manage price impacts on customers.
The upwards pressure on WaterNSW’s prices has primarily been driven by a combination of higher proposed operating and capital expenditure, and an increase in the WACC resulting from higher interest rates.
Submissions are now open for our Draft Report
Your input is valuable to us as we undertake this price review. You can have your say by making a submission to our Draft Report before 11 May 2026.
We held a public hearing on 21 April 2026. The Agenda, slides and recording of the public hearing are available online for those who were unable to attend.
We will also consider all the information and feedback provided in our 2024-25 pricing review.