Alternative water sources - Frequently asked questions

The NSW Water Strategy (along with the metropolitan and regional water strategies that sit beneath it) identifies and seeks to address 5 key challenges facing NSW. The key challenges are:

1. Servicing a growing population.
2. Building resilience to drought and a changing climate.
3. Supporting the economy and jobs.
4. Putting water at the heart of our cities and communities.
5. Improving water management outcomes for Aboriginal people.

We have identified 5 key priority areas where management of our water needs to be improved::

1. Knowing how much water we need and when.
2. Ensuring our water systems are sustainable for the long term and resilient during extreme events.
3. Making our cities green and liveable.
4. Keeping our waterways and landscapes healthy.
5. Ensuring that water management and services meet community needs.

Water utilities should develop and implement plans for addressing leakage within their water supply networks. Through these plans, targets can be set and monitored. For example, Rous County Council is seeking to lead its region by undertaking an ambitious program. This program focuses  on improving pressure management and using active leak detection to achieve a 50% reduction of losses within the bulk supply network.

The NSW Government supports water utilities with this through the Water Efficiency Program

Some of the solutions include:

• Continue investing in water conservation and efficiency programs to save water at a relatively low cost.
• Explore and plan for new rainfall-independent supply options such as desalination and recycling. This includes investigating the use of purified recycled water for a range of end uses (noting that the use of purified recycled water in drinking water supplies would be subject to community consultation and require strict government approvals).
• Increase the use of stormwater and recycled water to cool and green the city and support recreational activities.
• Invest in upgrades, new connections and leak management to address the risks posed by ageing water and wastewater systems and infrastructure.
• Better integrate our water and land use planning to include sustainable water use in building and landscaping design.

Experience from the 2017-2020 drought and the earlier Millennium Drought showed that if either of the droughts had continued and surface water levels had continued to fall at the same rate, NSW’s water supply would have reached critically low levels. There would not have been enough time to bring on new sources of water supply. Additionally, our urban populations are growing, which is increasing demand.

Given the limited availability of new sources of surface water, we need to develop new sources of water that are not dependent on rainfall. These sources include desalination of salty water (such as brackish groundwater and seawater) and recycled water. This also includes investigating the use of purified recycled water for a range of end uses (noting that using it in drinking water supplies would involve community consultation, stringent water quality assurance programs and government approvals).

Yes. However, this can:

• impact our natural environment
• increase risk of flood and flood damage or other changes
• be more expensive than other viable alternatives
• trigger environmental flow release requirements
• depend on rainfall to fill and will have losses through evapotranspiration

Considering these factors, along with a changing climate, this option may not increase the long-term reliability of water supply.

Water is critical for our state’s health and economy, but managing water and ensuring its availability can be complex. As outlined in the NSW Water Strategy, the Government is committed to supporting utilities with diversifying their water supply sources, including recycled water, to increase security and resilience of water supplies for our cities and towns. All water supply options should be considered in utilities’ strategic planning, while protecting public and environmental health.

Recycled water from wastewater and stormwater can be treated to be fit for various uses including for drinking. In addition to increasing water security, increasing water recycling has multiple benefits such as: reducing reliance on drinking water supplies; reducing the need to discharge wastewater; helping to manage high flow periods; and providing valuable resources for products.

To achieve these benefits, we are collaborating across government to remove regulatory barriers, better coordinate land use and water planning, update guidance, and enable a planning and regulatory environment that makes water recycling cost-effective.

Highly treated or purified recycled water forms a part of the drinking water supply in more than 35 places around the world however, to date, purified recycled water has not formed a significant part of water supply systems in Australia. Future use of purified recycled water in our drinking water supplies would be subject to community consultation, stringent water quality assurance programs and government approvals.

Potential impacts to other water needs and users are identified and assessed through the water access licencing framework under the Water Management Act 2000 and water sharing plans.

To ensure that there are no impacts on agriculture or the environment, robust local hydrogeological assessments of aquifers are needed. This is usually done through pumping tests of groundwater bores and monitoring programs of other nearby bores, streams and rivers.

Unused deeper groundwater sources often have less impact on agriculture. However, it’s important to realise that ecosystems can be dependent on shallow or deep groundwater sources and must be considered in full ecological assessments.

No. Groundwater is less susceptible and affected by drought than surface water systems, such as creeks and dams. However, groundwater is not an entirely independent source of water from rainfall or climate. Groundwater requires rainfall to recharge the groundwater system, but this can take decades or centuries to happen. Groundwater is often connected to rivers, streams, lakes and wetlands. Trees and other vegetation can tap into groundwater and be reliant on it.

The extent of climate change effects experienced by groundwater resources is uncertain. Adopting the same approach that is used for surface water when assessing the impacts of climate change on long-term reliability of groundwater is risk adverse and the recommended approach.

Although water conservation is important to help make our water supply go further, it is not enough to meet the challenges posed by climate change and a growing population.

We are seeking new approaches to working with the community to ensure we have secure, reliable water sources and to build future resilience to climate change and droughts. The efficient use of water will contribute to the sustainability of long-term supplies, build resilience to drought and support readiness to respond to future extremes in weather.

Better valuing our precious water resources is an important theme of the NSW Water Strategy, with ongoing water conservation practices required to manage the ongoing water needs of NSW communities.

Increased investment in water system efficiency (reducing water loss), water conservation and demand management can delay the timing and reduce the scale of investment in new supply infrastructure and so maximise the value of our resources. Water conservation is strongly supported by communities, businesses, and the government.

For more information visit: Water efficiency program

Sometimes, but this is not always possible, and it does not necessarily improve the security of one or both water utilities’ supply network. If not already in existence, it requires new infrastructure to facilitate the exchange of water.

Rainwater tanks will not give us the reliable water supply that is needed. They rely on rainfall, and during the 2019 drought, landowners who normally relied on rainwater tanks placed an unprecedented demand on town water supply. Rainwater tanks assist in achieving water conservation targets, but on their own they are not a long-term option to secure a region’s water supply when climate change results in unreliable rainfall. Many utilities have helpful rainwater tank and water efficient fixtures rebate programs which continue to support reduction in demand and low-scale diversification of supply sources. However, rainwater tanks need to be connected to properties and maintained by the property owner/occupier to maximise their benefit.

Yes. All new residential developments are required to have rainwater tanks. This is a state-based requirement known as BASIX, which aims to reduce the potable water consumption of all new residential developments by 40%, based on the average potable water consumption of a pre-BASIX home. This is achieved with rainwater tanks and water efficient appliances or fixtures. To demonstrate that all new residential development meets the BASIX requirements, all proponents for new dwellings must successfully create a BASIX certificate and submit this as part of the development application process.

Utilities may assess the performance (through water-metered averages) of BASIX-compliant properties against certificate data and adopt those water savings in demand forecasting.

There is a social and economic trade off from water restrictions and we need to find the balance. The NSW Water Efficiency Framework recommends how water efficiency programs and initiatives should be designed according to best practice to achieve the best overall outcomes.

Utilities can continue to support water conservation measures, though this on its own may not be enough to secure an area’s future water needs.

Local water solutions need to be developed for long term security. There might be opportunities to use non-potable water for watering sports grounds or recycled water for car washing through a dual reticulation (purple pipe) system.

The cost of each water source option depends on the location where the option will be implemented. Investing in water supply security is expensive, however the benefits arguably outweigh the expense and impact of running out of water.

Water utilities consider various costs when evaluating water source options, including initial setup and running costs. Set up costs include assessment reports, plans, consultation, environmental impact and required offsets, approvals, infrastructure, supplies, contractors, project delays and public communication. Running costs include staff resources, training, consumables, power and waste disposal.

Utilities can do a feasibility study and cost benefit analysis to weigh up the most suitable and affordable water source options for their local area. They also need to evaluate the level of improvement in water security and resilience that each option offers the community and therefore how much protection from running out of water will cost

Resources to help utilities make these decisions:

• Several papers presented at the OzWater ’23 Conference addressed this topic:
  • Frontier economics 2023 ‘Signalling a drought: A framework for identifying the onset and impacts of drought for evidence-based policy decisions', OzWater23 Poster.
  • Clarke, Lorimer and Fargher 2023, ‘Water security is important… but what is it and how are we performing?’ OzWater23 Paper.
  • Wu, W. and Romain, D. 2023, ‘Purified Recycled Water for Urban Communities – A Cost Benefit Case Study,’ OzWater23 Poster.
• Marsden Jacob Associates (2023) ‘The Recycled Water Economic Assessment Tool’, Marsden Jacob Associates website, accessed 11 January 2024.

The funding sources for any utility initiative, including implementing water source diversification and increasing water security, include:

• user charges (current and future supply users)
• developer contributions
• state and federal grant opportunities.

High upfront investment could be financed by borrowings or cash reserves.

This depends on your water utility, how secure your water supply currently is, the region’s rate of growth and the water source options available to your utility. Certainly, within the next 40 years most places in NSW will need an alternative water supply to manage the impacts of climate change and population growth.

The time it takes to set up a new water source and connect it to the existing town water supply depends factors such as planning, consultation, the approvals process, tender for a contractor, suppliers, and the nature of the site and what needs to happen to build the infrastructure for using the water source.

These are significant projects and sufficient time must be allocated, otherwise these water sources won’t be available when we need them. A 2018 study in Queensland found it can take between 8 and 16 weeks to deploy portable desalination plants to regional Queensland centres during emergencies.  More permanent solutions take longer.

You can refer to our information on the approvals process for more details on lead time. We highly recommend utilities engage with their communities and regulatory bodies early to ensure as smooth and efficient a process as possible.

Drinking tap water is the most cost-effective way to stay hydrated, especially compared to other hydration options, such as bottled water. Water in NSW costs less than 1 cent a litre to customers and $3 a tonne delivered. Keep in mind your water bill includes more than the cost of accessing raw water - it also includes the infrastructure and operations required to treat and deliver the treated water to the customer. Also, wastewater service charges cover the cost of taking your wastewater away from your property and treating it. These costs vary depending on where you live.

Some utilities also manage stormwater and include this in their pricing. In many areas the cost of stormwater services and managing stormwater systems is included in your council rates. Wastewater and stormwater management is vital to protecting human health and the health of our environment.

The Department of Climate Change, Energy, the Environment and Water, along with other water utility regulators, oversees and supports water utilities in their delivery of water supply and sewerage services. By working in partnership with regulators and the wider sector, water utilities can manage risks and priorities in urban water systems more strategically and effectively.

In NSW, water utilities are governed by the Local Government Act 1993 (council-operated local water utilities), Sydney Water Act 1994 (for Sydney), Hunter Water Act 1991 (for Newcastle and the Lower Hunter Region), the Water Industry Competition Act 2006 (private water utilities) and the Water Management Act 2000. As well as the Public Health Act 2010, Protection of the Environment Operations Act 1997, Environmental Planning and Assessment Act 1979, Dams Safety Act 2015, Work Health and Safety Act 2011, Independent Pricing and Regulatory Tribunal Act 1992, and the Water Act 2007 (Commonwealth).

State owned corporations such as Sydney Water and Hunter Water have an operating licence issued by the Independent Pricing and Regulatory Tribunal (IPART). IPART checks their performance against the licence every year. A few utilities, including state owned corporations and some water supply authorities are subject to IPART price regulation.

Utilities report to the NSW Health on the quality of their drinking water. The Public Health Act 2010 requires all drinking water suppliers to implement a quality assurance program for the safe supply of drinking water. In NSW it should meet the Australian Drinking Water Guidelines to the satisfaction of NSW Health.

Performance monitoring and benchmarking provides assurance that each water utility is performing satisfactorily:

• The department monitors and annually reports on the overall performance of local water utilities as a public 'report card' in the annual NSW Water Supply and Sewerage Performance Monitoring Report. This report is provided to regional water utilities and allows NSW to comply with the National Water Initiative.
• IPART monitors 3 major public water utilities, and 20 private water utility schemes licensed under the Water Industry Competition Act 2006 (WIC Act) in NSW to check they comply with their licence conditions. IPART collects and publishes annual performance data from each utility.

Water is water. Whether it comes out of a tap or from a bottle, they both hydrate you in the same way. However, here are some compelling facts:

• According to NSW Health, bottled water is no safer than drinking tap water.
• There are typically more tests and reporting on tap water than bottled water to confirm safety and quality.
• Drinking tap water is considerably cheaper than bottled water. The average cost of a litre of drinking water in Australia is less than one cent versus $2.83 for bottled water.
• Bottled water has a large impact on our environment:
  • It takes up to 7 litres of water and one litre of oil to produce one litre of bottled water.
  • Most water bottles end up in landfill accounting for 38% of the total rubbish volume.
  • Producing bottled water makes 600 times more carbon dioxide than drinking water.
  • It takes up to 1,000 years to biodegrade a plastic bottle and even then it may still be present as microplastics. Plastic does not decompose.
  • All in all, bottled water has about 100 times greater environmental impact than tap water.