Sydney Water

About the Utility

Sydney Water is a New South Wales State Owned Corporation, constituted under the Sydney Water Act. It supplies drinking water, wastewater, recycled water and some stormwater services to more than 5 million people across Greater Sydney, the Blue Mountains and the Illawarra. It does not control its principal sources: WaterNSW manages the dams that feed the system, and the Sydney Desalination Plant at Kurnell is privately owned. Its Board sets strategy and approves price submissions to IPART, which regulates its prices, and the business operates under a four-year operating licence that began in July 2024. It has provided water services to the region for more than 135 years.

Water System

Greater Sydney’s supply is overwhelmingly rain-fed: about 85% depends on rainfall and 15% comes from desalination, with around 80 per cent drawn from Lake Burragorang behind Warragamba Dam. That exposure was tested during the 2017 to 2020 drought, when dam storage fell by nearly 60%. Sydney Water distributes the water through 13 delivery systems, all of which fully complied with the Australian Drinking Water Guidelines in the latest year. Network leakage was estimated above its target, although the network’s infrastructure leakage index is rated A. A smart-meter rollout is replacing mechanical meters across Greater Sydney with hourly readings.

Wastewater System

Wastewater is a core responsibility. Sydney Water operates 23 wastewater systems, each under a licence from the NSW Environment Protection Authority, and its water resource recovery facilities treat about 1.5 billion litres a day. Treatment ranges from primary and secondary stages to advanced tertiary processes, with several facilities discharging through deepwater ocean outfalls, while about 100 million litres a day is recycled. Around 180,000 tonnes of biosolids are produced each year, with biogas used for renewable energy. Overflows are the pressing issue: dry weather overflow volumes rose sharply in the latest year, and the EPA is reviewing the treatment system licences, including wet weather discharges.

Investment & Priorities

Investment is scaling up to serve a growing city and renew ageing assets. Capital investment reached $2,466m in 2024-25, below its $2,940m target, and Sydney Water plans to invest $32 billion over the next 10 years. The largest project in Western Sydney is the Upper South Creek Advanced Water Recycling Centre, scheduled for completion in 2026, while Quakers Hill is being upgraded with advanced treatment before it reaches capacity.

Sustainability & Resilience

Sydney Water’s response to climate risk combines new sources with lower emissions. Purified recycled water, proposed for a scheme from Quakers Hill to Prospect Reservoir, could provide up to 25% of Greater Sydney’s water needs by 2056. The utility has committed to net zero emissions in its own operations by 2030 and across its supply chain by 2040. Public support is being built through community engagement and a Purified Recycled Water Discovery Centre, and the desalination plant runs on renewable energy.

Key Challenges

1. Securing rainfall-independent supply through purified recycled water and desalination as Greater Sydney grows.
2. Delivering a rapidly expanding capital programme for Western Sydney growth and asset renewal.
3. Reducing dry weather overflows while the EPA reviews treatment and wet weather discharge licences.
4. Bringing network leakage back within target as smart metering is rolled out.

Major Projects