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Recommendation

Improve water infrastructure pricing and provision in cities

Section: 6.3. Building attractive and inclusive cities

How

The water, wastewater and stormwater sector should be reformed, including by:

  1. Implementing performance-based economic regulation and water quality regulation to ensure that water providers are incentivised to drive efficiency and deliver excellent customer service.
  2. Ensuring that there’s a clear link between the cost of providing water services and the prices that are charged to users, following the principles in Section 7.2.
  3. Allowing entities to use their balance sheet capacity to finance infrastructure for growth, as well as funding asset renewals and improvements in water quality.
  4. Clarifying the interface between water service entities and developer-financed water infrastructure provided under the Infrastructure Funding and Financing Act 2020.
  5. Ensuring that developers can benefit appropriately from the provision of infrastructure that has spare capacity.
  6. Developing cost-benefit analysis guidelines to standardise evaluation decisions on water infrastructure against social, environmental and economic benefits.

Who

    When

    2022 - 2031

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