1.8  Water

Table 41: Direct Economic Contribution of water infrastructure in New South Wales

Source: ACIL Allen Consulting (2014a)

The DEC for water and sewerage infrastructure in NSW is projected to increase from $3 billion in 2011 to $3.4 billion in 2031, an increase of around 15 per cent. In 2011, 3,880 GL of water was supplied in NSW, including 550 GL in Sydney. In addition, 710 GL of sewage was collected, including 450 GL in Sydney.

Table 41 outlines the DEC associated with water and sewerage infrastructure in:

■  greater Sydney;

■  the Riverina and Murray regions; and

■  other regional areas.

In the greater Sydney region, water and sewerage DEC is projected to grow from $1.8 billion in 2011 to $2 billion in 2031. This is an increase of 11.7 per cent over the 20 year period.

In the Riverina and Murray regions, which include a high proportion of water delivered for irrigation, DEC is projected to grow by $35 million or 16.2 per cent over the 20 years to 2031.

Across regional NSW more broadly, water and sewerage DEC is projected to grow to $1.2 billion by 2031. This constitutes an increase of $221 million or 19 per cent from 2011.

It is important to note that water and sewerage services have historically been under-priced, particularly in regional areas, and that this potentially leads to an understatement of DEC (which is derived from National Water Commission data).

In regional areas, under-pricing of water and sewerage services means that the income derived from water and sewerage infrastructure falls below the level needed to fund renewal of assets.