The Minns Labor Government is investing $650,000 to support councils in Western NSW to build stronger, more resilient water and sewer services.
The funding will support two voluntary pilot projects that trial collaborative approaches to tackling key local challenges and improve long-term service reliability.
The pilots involve Western Councils Water Alliance members, along with Moree Plains and Narrabri, and a separate group of south-west councils including Balranald, Carrathool, Hay, Lachlan and Wentworth.
Delivered over two years, the pilots will test practical ways for councils to collaborate, including but not limited to:
- Sharing specialist staff to address common strategic challenges and risks
- Working together at a regional level to coordinate critical infrastructure work.
By focusing on cooperation rather than structural change, the pilots aim to deliver practical, locally tailored solutions for regional communities to improve service quality, strengthen drought resilience, and use funding more efficiently.
Most western NSW local water utilities are also undertaking a strategic planning review delivered free of charge by the Department of Climate Change, Energy, Environment and Water.
This work will directly inform the pilots by identifying future costs, risks and investment needs., ensuring projects target real, on-the-ground challenges.
These pilots form part of the Minns Labor Government's broader reform plan to improve water availability and reliability in our regions.
Following the Productivity and Equality Commission's Review of Funding Models for Local Water Utilities, the NSW Government committed to exploring a new funding model for local water utilities.
This pilot initiative responds to the Productivity and Equality Commission's findings that collaboration between councils offers a practical path forward to strengthen service delivery in western NSW.
A reform plan that delivers more consistent, long-term funding is expected to be launched in 2027.
Quotes attributable to Minister for Water, Rose Jackson:
"Our Government is committed to ensuring our regional communities have equal access to safe, reliable and affordable water services and this is the next step in our plans to improve the system.
"We know the funding model for local water utilities isn't working and we're getting on with the job of reforming the sector.
"While that work is underway, we're backing councils in our state's west to work together on practical solutions that improve water services for their communities.
"Water utilities in western NSW have been clear: they want collaborative approaches, not structural changes. These pilots will give them the opportunity to demonstrate the value of that approach.
"This investment is driving real improvement through collaboration, putting Western NSW water utilities in the driver's seat and on the path to more sustainable water service delivery."
