Following sustained advocacy from the NSW Irrigators' Council, IPART has commenced a wholesale review of the WaterNSW rural water pricing and cost-sharing structure.
Last week, IPART launched stakeholder consultation on WaterNSW rural valleys water pricing to take effect from 1 July 2026. As part of this process, IPART will closely examine how to restructure the current pricing model that threatens to price farmers out of business and keep local produce off supermarket shelves.
"NSWIC and its members have consistently advocated for a wholesale pricing review of WaterNSW," said NSWIC CEO, Dr Madeleine Hartley. "We are pleased to see that recommendation adopted, paving the way for a thorough review that can help ensure fair and affordable water access for irrigators."
"In June 2025, water users were hit with an 8.3% price rise across most NSW rural valleys - the latest in a long-running trend of escalating charges," said Dr Hartley. "This increase is another heavy burden for farmers already grappling with soaring input costs, high interest rates, and the ongoing impacts of floods and drought."
Analysis by IPART reveals WaterNSW operating base costs per unit of water entitlement are growing, with a 49% increase in the ten-year period between 2014-15 and 2024-25. Since 2017, WaterNSW has exceeded its capital and operational expenditure allowances set by IPART and many of its projects lack business cases or a cost-benefit analysis.
"WaterNSW revenue requirements are ballooning faster than the capacity of its customers to pay more. This is not a sustainable business model by any measure. Cost sharing arrangements must be reviewed and cost-drivers assessed.
"IPART has rightly recognised that access to safe, reliable and affordable water at a fair price is critical to rural communities, the environment and the economy. IPART's review and consultation plan is a step in the right direction to ensure this is the case."
NSWIC is hopeful that IPART will adopt a similar approach towards the Water Administration Ministerial Corporation in its 2028 review.
*IPART is the Independent Pricing and Regulatory Tribunal
