Background
The Sydney Water Regulation equips Sydney Water to provide essential drinking water, sewerage, recycled water, drainage and stormwater services to more than 5.4 million people across Greater Sydney.
The Regulation enables Sydney Water to protect its assets, implement water restrictions during drought, and ensure compliance with certain rules relating to Controlled Areas, plumbing and drainage works and water restrictions.
The Sydney Water Regulation 2017 (the 2017 Regulation) will be automatically repealed (i.e. stop operating) on 1 September 2025 under the Subordinate Legislation Act 1989.
Under the staged repeal process, NSW regulations are automatically repealed after 5 years, unless they are remade.
The department is proposing to remake the 2017 Regulation by replacing it with the Sydney Water Regulation 2025 and would like your feedback.
Timeline
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May 2025
Proposed Sydney Water Regulation 2025 on public exhibition.
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June 2025
Public exhibition ends.
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Mid-late 2025
What We Heard Report released.
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1 September 2025
Sydney Water Regulation 2025 comes into effect.
About the project
Most of the content of the 2025 Regulation will be similar to the 2017 Regulation, but the department proposes some changes that will:
- Modernise processes to improve user experience, customer service and administration, which includes allowing more processes to happen online and simplifying some requirements.
- Increase some penalties for breaching water restrictions to bring them in-line with other similar fines.
- Extend the time period from 2 to 6 years during which Sydney Water can direct a person who carried out defective plumbing works to conduct repairs, and/or impose a fine for failing to comply with the direction. This change ensures directions do not expire before works can be identified and fixed.
- Streamline and clarify the regulations to improve understanding and compliance.
The Regulatory Impact Statement outlines proposed changes to the Sydney Water Regulation 2017 which supports Sydney Water in delivering its services to the community and meeting its objectives under theSubordinate Legislation Act 1989 (the SL Act).
It also considers the alternative options of allowing the Regulation to lapse (do nothing) and remaking the Regulation as it is.
Public information sessions
You are welcome to attend a webinar information session where Department of Climate Change, Energy, the Environment and Water staff will provide an update on the proposed changes to the Sydney Water Regulation and answer your questions. It will be recorded and published on our website to view from mid-June 2025.
Have your say
Make a submission
If you would like to make an online submission, please click on the 'Have your say' button below.
Submissions will be accepted until 11:59pm Sunday 15 June 2025.
We respect your right to privacy. For more information, read our privacy statement.
Frequently asked questions
What is the Sydney Water Regulation and why are you remaking it?
The Sydney Water Regulation 2017 is the current statutory instrument allowing Sydney Water to provide essential drinking water, sewerage, recycled water, drainage and stormwater services to more than 5.4 million people across Greater Sydney, the Blue Mountains and the Illawarra. The Regulation also gives Sydney Water the ability to protect its assets, implement water restrictions during drought, and fine people or corporations when they don’t comply with rules relating to Controlled Areas, plumbing and drainage works and water restrictions.
The Regulation is due for repeal on 1 September 2025, and it needs to be remade so Sydney Water can continue to provide these essential services.
What are the proposed changes?
The proposed changes include increasing some penalties for breaching water restrictions to bring them in-line with other similar fines.
Penalties would increase from $220 to $450 for individuals, and from $550 to $900 for corporations.
We are also proposing to set out powers for Sydney Water to authorise connections to its assets as well as to water supply, sewerage or drainage works.
In addition, we are proposing to extend the time period from 2 to 6 years during which Sydney Water can direct a person who carried out defective plumbing works to conduct repairs, and/or impose a fine for failing to comply with the direction. This change ensures directions do not expire before works can be identified and fixed.
| Clause/part | 2017 Regulation | 2025 Regulation |
|---|---|---|
|
Part 3 plumbing and drainage, clause 23 (directions) 2025 Regulation, clause 22 and 33 | Sydney Water can direct a person who carried out defective plumbing works to conduct repairs, and/or impose a fine/penalty for failing to comply with the direction. The direction is valid for two years. | The direction will be extended to six years, so that directions do not expire before works are identified and fixed. |
|
Schedule 1, s50, penalty notice offences
2025 Regulation, Schedule 1, 34(3) | The penalty notice amount for failing to comply with water restrictions is $220 for individuals and $550 for corporations. The maximum fine a court can impose is $550 for individuals, and $5,500 for corporations. |
Retain and increase the penalty notice amount for the offence under clause 34(3) related to water restrictions, from $220 to $450 for individuals, and from $550 to $900 for corporations. The maximum fine a court can impose has increased to $5,500 for individuals and $22,000 for corporations. |
| New offences and penalties (19(3), 20(6), (31 (3), 32(6) | It is an offence to not comply with the conditions of permits (100 penalty units for an individual and 200 penalty units for a corporation). | New penalty offences have been included for failing to comply with the conditions of a suspension or cancellation of an authorisation or permit (20(6), 32(6)). They are consistent with amounts for failing to comply with conditions of authorisations or permits (19(3),31(3)). Maximum penalties a court can impose are 100 penalty units for an individual ($11,000) or 200 penalty units for a corporation ($22,000). Penalty amounts of $750 for individuals and $1500 for corporations have been added for all four offences. This is to allow Sydney Water non-court options to enforce compliance with conditions. |
| Part 3 Plumbing and Drainage – Restructure | This part sets out requirements for performance of plumbing and drainage works, including the requirement for a permit to do plumbing or drainage work, conditions around the permits, exemptions, the remedying of defective work and the giving of directions. | The proposed Regulation is restructured to set out powers for Sydney Water to authorise connections to its assets (Part 3) and works for water supply, sewerage or drainage (Part 4). This change is to align more clearly with powers in the Act and is consistent with changes made to the Hunter Water Regulation in 2024. |
How do these changes affect stakeholders?
We do not expect the proposed changes to have major impacts on residents, businesses or other stakeholders, except those who don’t follow the rules.
Will this increase/affect Sydney Water charges/rates?
No, this will not affect rates or increase charges.
Sydney Water’s rates are set by the Independent Pricing and Regulatory Tribunal (IPART) based on the efficient costs of providing essential services.
IPART sets prices every three to five years, with adjustments for inflation in between reviews. IPART is expected to publish its latest draft determination on 20 May 2025.
Under the regulation, what are the infringements Sydney Water can issue fines for?
Sydney Water can penalise people or corporations who don’t follow safety, disposal, water restriction, or access rules.
These might include things like polluting waters in a controlled area, damaging assets, or building substandard works, as well as breaching water restrictions.
Why are you increasing some penalties?
We are proposing to increase penalty amounts for failing to comply with water restrictions from $220 to $450 for individuals; and from $550 to $900 for corporations.
The maximum fine a court can impose has increased from $550 to $11,000 for individuals and from $5,500 to $22,000 for corporations.
This brings it into line with similar offences in the Regulation that pose threats to water quality and security, such as clause 9 (bringing and/or leaving animals in controlled areas), clause 13 (polluting waters), and clause 12 (causing damage, by for example damaging or removing a plant).
The increase also reflects the seriousness of the offence. In addition, we have introduced new penalties for failing to comply with any condition of a suspended or cancelled permit or authorisation. We have also added the option to issue fines instead of pursuing court action.
However, it’s important to note that Sydney Water will only issue a penalty notice after engaging with the alleged offender and all other remediation options have been exhausted.
How can people have their say?
We invite the entire community including Sydney Water customers, residents, councils, Aboriginal people, environmental and industry groups to make a submission on the proposed changes before 11:59pm on 15 June 2025.
People can also attend a webinar at 12pm - 1pm on 5 June to learn more.
We will carefully consider all feedback which will help inform the final remade Regulation. If approved, it will commence on or before 1 September 2025 and remain in effect until at least 1 September 2030.