Water Management (General) Regulation 2025

Executive summary of update

Effective date: 10 April 2026 This update to the Water Management (General) Regulation 2025 introduces several key changes impacting water access, approvals, and compliance. Most critically, new exemptions have been established for public authorities undertaking environmental water releases and essential infrastructure projects, and for permeable structures enhancing geomorphic processes. The criteria for cancelling specific purpose access licences have been expanded, and the qualifications for engineers acting as ‘duly qualified persons’ for metering have been made more specific. Additionally, the list of water sharing plans and associated water regions, crucial for valuing illegally taken water, has been significantly expanded. These changes aim to streamline certain water management activities while enhancing clarity in compliance and enforcement.

Impacted parties

This update most significantly impacts public authorities (including Water NSW), landholders, access licence holders (especially those with specific purpose licences), and engineering/metering service providers.

Change Analysis

1. New Exemptions for Water Taking and Works

• What is the new requirement?
  • Public authorities are now exempt from holding an access licence for taking water from unregulated river water sources for environmental purposes, provided the water originated from a regulated river source for an environmental purpose and is recorded.
  • Water NSW is exempt from holding an access licence for taking water from regulated river water sources when delivering planned environmental water or water in accordance with a relevant instrument.
  • A new exemption is introduced for the construction or use of permeable structures on riverbeds to enhance geomorphic processes, provided impounding is minimal, fish passage is not obstructed, and a controlled activity approval is in place.
• What was the old rule?
  • (New Obligation) These specific exemptions for public authorities and Water NSW were not previously in place, meaning such water taking activities would generally have required an access licence.
  • (New Obligation) The exemption for permeable structures to enhance geomorphic processes was not previously in place, meaning such works would have required a water supply work approval.
• Why does this matter?
  • These new exemptions reduce the regulatory burden for public authorities and Water NSW when undertaking critical environmental or delivery activities, potentially speeding up project delivery and reducing administrative costs.
  • The exemption for permeable structures provides a clear pathway for certain environmental restoration or flow management works, which could facilitate ecological improvements.

2. Changes to Access Licence Categories and Cancellation Criteria

• What is the new requirement?
  • Section 32 now includes additional criteria for the Minister to cancel specific purpose access licences, such as whether the activity requiring water supply continues, if anyone resides at a location supplied for domestic purposes, if stock are present at a location supplied for stock purposes, or if water is now supplied from another source.
  • Schedule 3 now explicitly lists “Town water supply” as a subcategory for “Local water utility” access licences. The previous table in section 24(3) outlining specific purpose access licences and their purposes has been removed, with the subcategories now solely defined in Schedule 3.
• What was the old rule?
  • Section 32 previously had truncated criteria for cancellation, implying a less comprehensive set of conditions for the Minister to consider.
  • “Town water supply” was not explicitly listed as a subcategory for “Local water utility” in Schedule 3, and the definition of specific purpose access licences and their purposes was partly contained in a table within section 24(3) of the main body.
• Why does this matter?
  • The expanded cancellation criteria for specific purpose access licences introduce greater risk for licence holders if their activities or circumstances change, requiring closer monitoring of compliance with these new conditions.
  • The clarification and addition of subcategories in Schedule 3, and the removal of the table from section 24(3), centralizes and standardizes the definition of specific purpose access licences, improving clarity for applicants and licence holders.

3. Updated Metering Standards and Duly Qualified Persons

• What is the new requirement?
  • Permanent exemptions from metering equipment standards (Section 78) now refer to different specific sections within Schedule 5 (e.g., 2(1), 4, 5(2), 6, and 7 instead of 3(1), 5, 6(2), 7 and 8).
  • Certifications for inspections of water supply works for floodplain harvesting (Section 101) now refer to Schedule 6, section 2(2) and 2(3), instead of 1(2) and 1(3).
  • The qualifications for an “Engineer” to be a ‘duly qualified person’ (Schedule 8, Table 1) have been updated to specify particular areas of registration with NSW Fair Trading (civil, electrical, mechanical, structural) and Engineers Australia (civil, construction, electrical, environmental, information, telecommunications and electronic, mechanical, mechatronics).
• What was the old rule?
  • Section 78 previously referenced different sections of Schedule 5, implying a different set of standards applied to these exemptions.
  • Section 101 previously referenced different sections of Schedule 6 for inspection certifications.
  • The previous qualifications for “Engineer” were less specific, broadly requiring registration as a professional engineer or on the National Engineering Register without detailing specific engineering disciplines.
• Why does this matter?
  • Changes to metering standard references mean that certain works previously exempt from specific standards may now be subject to them, or vice-versa, requiring a review of existing metering setups for compliance.
  • The updated engineer qualifications in Schedule 8 mean that only engineers with specific, relevant expertise can now be considered ‘duly qualified persons’ for certain tasks, potentially affecting the pool of available certified professionals and requiring verification of current staff/contractor qualifications.

4. Expanded Water Regions for Valuation of Illegally Taken Water

• What is the new requirement?
  • Schedule 10, Part 1 has been significantly expanded to include numerous additional Water Sharing Plans and their corresponding Classified Groundwater Groups and Water Regions. These additions cover various regulated and unregulated river water sources and alluvial/fractured rock groundwater sources across different regions.
• What was the old rule?
  • The previous version of Schedule 10, Part 1 contained a shorter list of Water Sharing Plans and associated water regions.
• Why does this matter?
  • The expanded list of water regions directly impacts the methodology for determining the value of illegally taken water under Section 139. This means that the calculation of penalties for water contraventions will now be based on a more granular and comprehensive set of regional water market data, potentially leading to different, and likely more accurate, valuations for illegal water take in newly listed areas. This increases financial risk for non-compliance in these specific water sources.

Corrective and preventive actions

• Legal
  • Section 32: Review all existing specific purpose access licences to assess potential risks of cancellation under the new expanded criteria. Update internal guidance on licence management.
  • Schedule 3: Update internal registers and application forms to reflect the new “Town water supply” subcategory for Local water utility access licences and the revised structure of specific purpose access licence definitions.
  • Schedule 4, Part 2, Sections 5A, 5B, and Part 4, Division 3, Section 38A: Incorporate new exemptions into legal advice and compliance checklists for public authorities and Water NSW projects, and for projects involving permeable structures.
  • Schedule 8, Table 1: Review and update internal policies and contracts for engaging ‘duly qualified persons’ to ensure alignment with the new, more specific engineering qualification requirements.
  • Schedule 10, Part 1: Update legal risk assessments and penalty calculation models to reflect the expanded list of water sharing plans and water regions, ensuring accurate valuation of illegally taken water.
• Engineering
  • Section 78 (Schedule 5 references): Review all existing metering equipment installations to ensure ongoing compliance with the updated references to Schedule 5 metering equipment standards. Identify any equipment that may now fall outside compliance.
  • Section 101 (Schedule 6 references): Update internal procedures and checklists for inspections and certifications of water supply works for floodplain harvesting to align with the new Schedule 6 section references.
  • Schedule 4, Part 4, Division 3, Section 38A: Develop or update design and construction guidelines for permeable structures to ensure compliance with the new exemption conditions.
  • Schedule 8, Table 1: Verify the specific qualifications of all engineers currently designated as ‘duly qualified persons’ for metering-related work against the new, more detailed requirements. Arrange for any necessary additional certifications or training.
• Operations
  • Section 32: Implement new internal monitoring processes to track activities and circumstances relevant to the expanded cancellation criteria for specific purpose access licences.
  • Schedule 4, Part 2, Sections 5A, 5B: Update operational procedures for public authorities and Water NSW to ensure compliance with the recording and reporting conditions of the new exemptions.
  • Section 78 (Schedule 5 references): Conduct an audit of metering equipment to identify any non-compliance arising from the updated standards references and plan for necessary upgrades or modifications.
  • Section 101 (Schedule 6 references): Ensure operational staff involved in floodplain harvesting inspections are aware of and apply the updated certification requirements.
• Project Management
  • Schedule 4, Part 2, Sections 5A, 5B, and Part 4, Division 3, Section 38A: Integrate new exemptions into project planning and approval processes, particularly for public authority projects and those involving geomorphic structures, to leverage reduced regulatory burden.
  • Schedule 8, Table 1: Ensure project teams are aware of the updated ‘duly qualified person’ requirements when procuring engineering services for metering.
• Commercial and Procurement
  • Schedule 8, Table 1: Update procurement specifications for engineering services to reflect the revised qualifications for ‘duly qualified persons’.
• Government & Regulatory Affairs
  • Section 32: Monitor Ministerial decisions on specific purpose access licence cancellations to understand the practical application of the new criteria.
  • Schedule 10, Part 1: Communicate the expanded water regions to relevant internal teams to ensure awareness of the updated basis for water valuation.

Risks & opportunities assessment

• Risks:
  • Increased Compliance Burden: The expanded cancellation criteria for specific purpose access licences (Section 32) and the more specific qualifications for ‘duly qualified persons’ (Schedule 8) could increase the administrative and operational burden for licence holders and service providers.
  • Financial Penalties: The expanded list of water regions in Schedule 10, Part 1, used for valuing illegally taken water, means that non-compliance in newly specified areas could result in higher or more precisely calculated financial penalties.
  • Operational Delays: If existing metering equipment or personnel do not meet the updated standards or qualification requirements (Sections 78, 101, Schedule 8), projects or operations could face delays while rectifying non-compliance.
• Opportunities:
  • Streamlined Approvals: The new exemptions for public authorities (Schedule 4, Sections 5A, 5B) and for permeable structures (Schedule 4, Section 38A) offer opportunities to expedite certain environmental and infrastructure projects by reducing the need for specific access licences or approvals.
  • Enhanced Environmental Outcomes: The exemption for permeable structures (Schedule 4, Section 38A) could encourage more projects aimed at improving river health and geomorphic processes.
  • Improved Data Accuracy: The updated metering standards and certification requirements (Sections 78, 101, Schedule 8) should lead to more accurate water measurement, which can support better water management decisions and potentially more efficient water use.