Private water corporations

There are 81 private water corporations. If your corporation is not listed below or is listed incorrectly, please contact us on either 1300 081 047 or jpws@dpie.nsw.gov.au.

Private water corporations operate within the area specified in their works plan. Works plans are for the purpose of identifying a corporation’s current and proposed works. They do not replace the requirement for licences and approvals under the Water Management Act 2000 or any other Act. Each corporation is responsible for making their own works plan. We do not approve works plans but may request a copy.

Under reforms that started on 1 March 2024, existing plans and works are recognised.

Corporations need to change or replace these plans by holding a general meeting to vote on adopting a works plan by 1 March 2025. If a corporation does not adopt a works plan by 1 March 2025, we may appoint someone to prepare the works plan and recover the cost from the corporation.

We are working with other government agencies to collate and digitise existing plan boundaries. Once available, we will share these records with corporations to help them develop their works plan.

What goes in the works plan?

A works plan must include a map or diagram of the private water corporation’s water management works or proposed works. These are the works which the corporation uses to provide their water supply or drainage services and is responsible for operating and maintaining. For example, works include the corporation’s pumps, tanks, pipes, channels, dams, weirs, drains, sluices, sluice gates and valves.

The works plan also needs to:

• identify and describe the corporation’s current and proposed water management works, including their location
• specify the land the works plan applies to
• reference any access licences the corporation holds by specifying the licence number
• reference any water supply work approval or activity approval the corporation holds by specifying the approval number
• specify the address where the works plan will be kept and from which a copy of the works plan can be obtained.

It is up to each corporation whether they include all the information on a map or diagram. For example, a corporation’s works plan could be a map or diagram, a series of maps or diagrams, or maps or diagrams and descriptive text. If non-corporation works are also shown on the corporation’s works plan, they must be clearly marked as non-corporation works.

Changing the works plan

Works plans can be changed. It is the private water corporation’s responsibility to prepare any new or amended works plan.

Changes to a works plan must be agreed to by any landholder whose land has an affected work situated on it and as otherwise required by the corporation’s rules. Changes to the works plan resulting from membership changes requires approval of at least two-thirds of corporation members.

Private water corporations are governed by the Water Management Act 2000 and regulations, and rules approved by their members. Corporation rules are binding on members and other landholders that receive services from the corporation. Each corporation is responsible for making its own rules. We do not approve corporation rules but may request a copy.

We have developed model rules to help corporations make their rules. The model rules are like a template and:

• comply with the Water Management Act 2000 and regulations
• identify areas of flexibility
• align with general principles of good corporate governance.

Corporations can choose to adopt the model rules and may change the model rules where they are flexible, or develop their own rules consistent with the Act and regulations.

Model rules

Under reforms that started on 1 March 2024, existing documents are recognised as corporation rules. Corporations need to change or replace these rules by holding a general meeting to vote on adopting rules by 1 March 2025. Rules must be approved by at least two-thirds of members. If a corporation does not adopt rules by 1 March 2025, the model rules will become the corporation rules.

What goes in the rules?

The Water Management Act 2000 and regulations list what private water corporations can make rules about. For example, corporations can make rules about:

• membership
• the board, including the frequency and process for elections
• members’ and board meetings. For example:
  • meeting quorums
  • meeting frequency
  • voting rights
• rates and charges, including security for unpaid rates and charges
• selling or transferring members’ water entitlements
• investigations and enforcement
• resolving disputes
• amalgamating with other corporations
• winding up.

Changing the rules

Private water corporations can change their rules. Changes generally require approval of two-thirds of members entitled to vote on the change. However, corporation rules can specify the changes that can occur without this approval.

Members of private water corporations have the right to:

• request a copy of the rules or works plan
• request to have their water entitlement determined
• request to sell or transfer their water entitlement to another member
• request to have their water entitlement transformed
• view audited financial statements at annual general meetings
• vote on changes in membership requiring changes to the works plan, changes to rules and winding up the scheme.

Corporation rules can also include other members’ rights, such as:

• attending and speaking at meetings
• putting forward resolutions at meetings
• asking board members to call meetings
• voting rights
• members’ decision-making.

Members of corporations also have obligations. For example, corporation members must:

• comply with corporation rules
• notify the corporation when selling their land. Before you sell land that a corporation provides, or can provide, water supply or drainage services to, you must give written notice of your intention to sell the land. You must also give the corporation written notice after you sell your land. This notice must be given within 21 days of the sale and include the date of the sale, the purchaser’s name and whether you informed the purchaser that the land is within the corporation’s area.
• pay rates and charges
• provide distribution works if requested by the board.

Corporation rules can include other member’s obligations, such as keeping contact information up to date.

Rates and charges

Private water corporations must set rates and charges for each financial year. Corporations can set rates and charges for:

• landholdings owned or occupied by members for which the corporation exercises their functions
• providing water or drainage services.

Setting rates and charges

Rates and charges must be sufficient to meet the estimated costs of providing services, paying liabilities, likely costs for maintaining, improving, or replacing works, and may provide for a sinking fund. Private water corporations can decide what they base their charges on. For example:

• the volume or quality of water supplied or proposed to be supplied to a landholding
• the area of the landholding
• whether the corporation provides or proposes to provide water or drainage services to a landholding
• the purpose for which water services are supplied or proposed to be supplied to a landholding.

If a corporation fixes rates and charges based on the area of a landholding, it must fix them per hectare and round fractions up to the nearest hectare.

The basis on which rates and charges are set and the procedure for setting rates and charges must be in the corporation rules. The procedure could include, for example, requiring rates and charges to be voted on by members.

Paying rates and charges

Private water corporations must inform their ratepayers of their rates and charges in writing. For example, by issuing a rates notice. Corporations must give notice within 21 days of setting the rates and charges. Corporation rules must set out when rates and charges need to be paid.

Corporations may charge interest on overdue rates and charges. However, the interest rate cannot be higher than the rate of interest payable on an unpaid judgment of the Supreme Court. To charge interest, your rates notice must specify the basis on which your corporation calculated interest and when interest becomes payable.

Recovering unpaid rates and charges

Private water corporations can recover unpaid rates as a charge on the land and through the court.

If a corporation has required security in its rules, it can also recover unpaid rates and charges by forfeiting the security.

Corporations may also suspend, restrict or refuse water supply to members or landholders if they fail to pay rates and charges.

Financial statements

Private water corporations must prepare financial statements for each financial year. The financial statements must:

• present fairly the corporation’s financial position, financial performance, and cash flows
• be prepared in accordance with the standards issued by the Australian Accounting Standards Board and any other requirements specified in the Government Sector Finance Act 2018, the regulations made under that Act or directions issued by the Treasurer.

Corporations must also have their financial statements audited annually. The auditor must be either a:

• registered company auditor within the meaning of the Commonwealth Corporations Act 2001
• Certified Practising Accountant member of CPA Australia, New South Wales Division
• member of the Institute of Chartered Accountants in Australia, New South Wales Region, who holds a Certificate of Public Practice issued by that Institute
• member of the Institute of Public Accountants who holds a Professional Practice Certificate issued by that Institute.

There is no obligation for corporations to give us copies of their audited financial statements each financial year, but we may request a copy.

We can wind up private water corporations on their request or if an administrator recommends winding up.

To ask to be wound up, the corporation must have held a vote and at least 75% of members must have voted to wind up. As part of deciding to wind up, we recommend that private water corporations also pass a resolution about how assets are distributed.

As there are several steps that need to be taken to officially wind up a corporation, it is important that you contact us for guidance on the legal process to do this. If you would like to discuss winding-up, please contact us on either 1300 081 047 or jpws@dpie.nsw.gov.au.