74. Demand for water infrastructure is projected to grow significantly slower than GDP.
75. Economic regulation of the sector is fragmented and may not effectively protect the long-term interests of consumers: objectives are often not clearly specified; links between economic, health and environmental regulation are not well identified; and existing economic regulation does not provide the consistency, certainty and transparency necessary to support further private involvement in the sector.
76. There is a need for more transparent and competitive pricing of water supply and wastewater treatment services, across urban and regional areas. In encouraging greater competition, careful consideration of the appropriate market structure(s) is required.
77. There is a need for additional market reform in the rural water sector, including market-based allocation of defined catchment resources, and transparent pricing of irrigation water.
78. Water quality in urban areas is good, but in parts of regional Australia it does not meet relevant drinking water standards.
79. Future climate variability could lead to a need for further water infrastructure to augment supplies.
80. A number of urban water utilities have increased their borrowings over recent years, for various reasons, with consequential impacts on their commercial performance and their ability to take on additional debt.
81. Underinvestment in maintenance of some water assets, and ageing infrastructure, will require an increased focus on maintenance and renewal.