Long-term funding needed to keep regional water services affordable

Published on 01 October 2026

Long-term funding needed to keep regional water services affordable

Cowra Council is calling for more long-term funding from the NSW Government to help regional councils pay for the major infrastructure needed to provide safe, reliable and affordable water and sewerage services.

Providing water and sewerage services involves much more than what comes out of our taps. Behind the scenes, Council maintains a large network of treatment facilities, reservoirs, pumps, pipes, water mains and sewer systems across the Cowra Shire.

This infrastructure is essential, but it is also expensive to maintain, replace and upgrade.

For regional communities like Cowra, there is an added challenge. We have fewer households and businesses to share these costs across compared with larger cities. Without government funding to help pay for major projects, more of the cost has to be covered through local water charges.

Cowra Council is supporting a statewide push by Local Government NSW and the Water Directorate for $5 billion in NSW Government funding over at least the next 10 years to help rural, regional and remote councils pay for major water and sewerage projects.

The call follows the full allocation of the NSW Government’s $1.1 billion Safe and Secure Water Program, which provided funding towards important water and sewerage infrastructure projects across NSW. No replacement long-term funding program has yet been announced.

Cowra Mayor Paul Smith said access to safe and affordable water was something every community should be able to rely on.

“Safe, reliable and affordable water is fundamental to public health, housing, business and the future of every regional community,” Cr Smith said.

“Cowra has a relatively small customer base but a substantial program of essential works. Without predictable State co-investment, the burden falls disproportionately on local households and businesses.”

Council’s Draft Integrated Water Cycle Management Strategy looks at what needs to be done over the coming decades to keep Cowra’s water and sewerage systems working reliably and to prepare for the future.

This includes maintaining and upgrading water treatment facilities, reservoirs, pumps, pipes and sewerage systems, as well as improving the security of Cowra’s water supply.

Some of the priorities identified for the Cowra Shire include improving the connection to the Billimari borefield, progressing the West Cowra sewer system, replacing ageing infrastructure and improving services in smaller communities including Billimari, Darbys Falls and Wyangala.

Put simply, these are projects that will need to happen over time to replace ageing infrastructure, reduce the risk of problems and make sure our communities continue to have reliable water and sewerage services into the future.

The amount of government funding Council receives towards these projects can make a significant difference to how much needs to be recovered from local water customers.

Council’s modelling shows that without the NSW Government contributing 50 per cent towards the cost of major works, water charges could need to increase by around 9 per cent, on top of the normal yearly increase for inflation.

If the NSW Government funded 50 per cent of these major project costs, the additional increase required is estimated to be around 2.5 per cent above inflation instead.

This is why Council believes long-term government funding is so important. It would help Council plan and deliver the infrastructure our community needs while reducing the amount of these major costs that has to be passed on to local households and businesses.

Mayor Smith said Council was not asking the NSW Government to pay for everything, but rather to help regional councils meet the significant cost of essential infrastructure.

“This is not about delaying necessary work or avoiding local responsibility,” Cr Smith said.

“It is about a fair partnership. Regional residents should not face unaffordable bills simply because the infrastructure needed to provide safe water must be funded across fewer customers.”

Council is calling for a long-term funding program that gives regional councils certainty about government support. This would allow Council to better plan ahead, replace ageing infrastructure, improve water security and carry out essential upgrades while keeping water and sewerage services as affordable as possible for the community.

ENDS