In February 2026, the NSW Environment Protection Authority issued a Pollution Reduction Program to Sydney Water over debris balls washing up on beaches. The EPA linked them to the Malabar wastewater system. The required works include removing fats, oils and grease from the Malabar Deep Ocean Outfall bulkhead, and long-term upgrades at the Glenfield and Liverpool treatment plants to take load off Malabar.
A review of all 23 licences
The order sits alongside a broader EPA review of the licences for Sydney Water's 23 wastewater systems, covering treatment levels, wet weather discharges and climate change. Public consultation closed on June 12, 2025, and the EPA has said changes will be made through licence variations.
The cost of asset failure
The EPA has prosecuted Sydney Water before. After a 2020 sewer collapse released about 16 million litres of raw sewage, Sydney Water was convicted in 2023, fined A$365,625 and agreed to pay A$500,000 to environmental projects.
Standards the capital plan must meet
Sydney Water's Operating Licence 2024–2028 requires at least 99.28% of properties to be unaffected by dry weather wastewater overflows each year. Drinking water compliance is strong: all 13 of 13 drinking water systems fully met the Australian Drinking Water Guidelines in FY 2024-25.
How new EPA requirements could land in the middle of the 2025-30 price period, and what that means for Sydney Water's capital plan, are examined in the report. The full report, Water Infrastructure Investment and Delivery: Sydney Water, is available for USD 499 at https://ourfuturewaterintelligence.com/reports/water-infrastructure-investment-and-delivery-sydney-water. For a free overview, read the Sydney Water Utility Snapshot at https://ourfuturewaterintelligence.com/utilities/sydney-water.