Regional Cities New South Wales (RCNSW), Media Release, 18 June 2026

Regional Cities NSW (RCNSW) has called on the Minns Government to prioritise regional water policy and investment after the release of the NSW Auditor-General’s Water management and regulation in NSW report on Monday.

RCNSW Chair, and Mayor of Lismore, Cr Steve Krieg said the Auditor-General’s report highlighted the state’s water framework remains complex, fragmented and constrained by poor data and unclear responsibilities.

“This report has also found that the Department of Climate Change, Energy, the Environment and Water has not evaluated the cumulative environmental, social and economic impacts of the post-2017 water reforms,” Cr Krieg said.

“The value of water entitlements in NSW is estimated to be up to $41 billion, getting regulation right on this issue is so important.

“Earlier this year, the Auditor-General also confirmed that almost $1 billion is required just to ensure regional and rural communities continue to receive safe and secure water at agreed service levels.

“Water security underpins every aspect of regional liveability and the State’s growth agenda, the work of the Auditor-General is clearly pointing to a system that is under-funded and under-governed.

“Given the role water plays in underpinning housing, renewables, agriculture service delivery and climate resilience, the question must be how can the NSW government achieve their ambitions without getting the state’s water framework right?” Cr Krieg concluded.

As part of the Regional Cities NSW pre-budget advocacy, the alliance has highlighted that the combined effects of ageing treatment plants, rising operating costs, climate variability and population growth are placing unprecedented pressure on local water systems.

The alliance is calling for sustained investment in regional water security including:

• More funding for the Safe and Secure Water Program to fund capital works;
• Better support through the Regional Water Efficiency and Sustainability Program to improve efficiency of current assets; and
• dedicated funding to deliver immediate safeguards for regional water supplies, including addressing the issue of PFAS.

Cr Krieg said regional cities are ready to support the Government’s broader growth agenda, but investment into water infrastructure and the broader regulation of the system needs to be at the top of the Minns government agenda.

“All our members are managing budget challenges, drought and ageing infrastructure, which is happening while demand is building in the system with increased population growth and housing shortages.

“We are on the same page as the State Government when it comes to addressing growth but this cannot happen without secure and reliable water systems,” Cr Krieg said.