Agricultural
23 June, 2026
Maximum prices for WaterNSW regional and rural bulk water
The Independent Pricing and Regulatory Tribunal (IPART) has made a four-year determination for the maximum prices WaterNSW can charge for regional and rural bulk water services, from July 1, 2026.
IPART tribunal chair, Carmel Donnelly, said WaterNSW owns, operates and maintains dams and bulk water infrastructure across regional and rural NSW, supplying bulk water to irrigators, local water utilities, environmental water holders and other customers.
The determination means maximum prices will increase by an average of 6.5 per cent per year plus inflation, and a new price increase cap will mean none of the valleys will have a maximum price rise greater than 10 per cent per year plus inflation. These increases include allowances for the Murray Darling Basin Authority and Border Rivers Commission.
“IPART aimed to set maximum prices so that customers pay no more than their share of efficient costs, while ensuring WaterNSW can continue to provide safe and reliable services over time,” Ms Donnelly said.
“Increases are needed so WaterNSW can maintain and replace ageing assets, comply with regulatory obligations, upgrade digital systems, and meet rising costs. The increases approved by IPART are significantly lower than the increase in revenue originally sought by WaterNSW, which initially proposed a 53 per cent increase in revenue for its regional and rural operations over five years.”
Ms Donnelly said the decision follows careful consideration by the tribunal of all factors it must consider under NSW laws.
“The tribunal has considered the revenue an efficient business would need to deliver WaterNSW’s bulk water services to rural and regional NSW as well as the social impact of bill increases, and appropriate cost allocations between customers and the NSW Government,” she said.
“For those valleys with higher price increases, a new cap will ensure maximum prices cannot increase by more than 10 per cent plus inflation in any year. This price increase cap will require a NSW Government subsidy and is expected to add a further $53.5 million to the NSW Government contribution over the next four years.
“IPART thanks stakeholders for their constructive feedback and engagement throughout this review. We are very conscious of the difficult economic context in which this determination was made, and the recent price shocks impacting some agricultural businesses.”
Ms Donnelly said the tribunal heard concerns about broader sustainability issues and has recommended the NSW Government lead a review of the long-term sustainability of regional and rural water services.
“There is more work to be done before IPART’s next review of prices,” she said.
“Setting a four-year determination period allows the government the time it needs to effectively review issues relating to the long-term sustainability of regional and rural bulk water services and respond to any findings and recommendations.
“The tribunal also recognises that WaterNSW has an important role to support the long-term sustainability of its regional and rural services.”
