Investigate alternative funding models

Sewerage plant

The department is committed to working with the sector on exploring funding models for local water utilities, including a needs-based Community Service Obligation (CSO) funding model.

We want to get the solution right and that’s why we are taking the time to take a two stage approach. Stage 1 is focussing on gathering information about the financial needs and capacity of diverse local utilities to meet their service obligations in their local circumstances.

This evidence base will inform Stage 2 which will look at alternate funding models that are fit for purpose to support local water utilities to meet service expectations.

The NSW Government’s policy position is that there shall be no forced amalgamations and that councils will continue as the owners of their water and sewerage assets. Continuation of this policy position is critical assumption of this investigation.