Local councils across regional New South Wales deliver essential services under conditions that differ significantly from those in metropolitan centres.
Ageing infrastructure, climate stress and complex regulatory expectations shape how these councils operate day to day.
Strengthening these systems requires advocacy, coordination and a clear understanding of what regional communities need to stay resilient.
Brendan Guiney, Executive Officer of the New South Wales Water Directorate, said regional towns face challenges that are not always visible from the outside.
“Small towns face a real challenge,” Guiney said. “They do not always achieve the same level of service that metropolitan areas receive.”
He said the 2019 tinder box drought sharpened awareness of how vulnerable some systems had become.
“Nearly 50 town water supplies were at high risk of failure,” Guiney said. “It showed how far some communities were falling behind.”
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How is climate pressure reshaping water planning?
Climate variability continues to influence regional water in New South Wales and Guiney said the 2019 drought had forced councils to rethink their long-term planning.
“The drought introduced the difficult topic of Day Zero,” he said. “Every water utility now needs a strong plan A, plan B and plan C.”
Ageing infrastructure remains a challenging issue too, and Guiney pointed out that rebuilding entire systems is often unrealistic for smaller councils.
“It is very difficult and almost unaffordable to build our way out of trouble,” he said. “We need to look at innovative approaches with the assets we already have.”
Among those innovative approaches are digital tools with the potential to create new opportunities for remote towns that have traditionally struggled with distance and limited local resources.
“Digital technology will be a game changer for small towns,” Guiney said. “It will help operators work more efficiently across long distances.”
State-supported programmes are helping utilities apply these tools more widely, including the Regional Leakage Management Programme, now in its second phase.
“It has delivered an uplift in measuring and monitoring water flows,” Guiney said. “It is reducing water loss and improving water security.”
He said the Advanced Operational Support Programme is also making a difference.
“It brings digital technology into monitoring critical control points for water quality,” Guiney said.
“It gives operators more confidence that they are producing clean drinking water day after day.”
Narromine Shire Council demonstrates what is possible when digital tools are applied across the whole system.
“Narromine is my benchmark for a small town using digital technologies,” Guiney said. “They use everything from CCTV cameras to smart meters and pressure monitoring.”
What pressures come with regional economic growth?
Population change continues to shape regional water in New South Wales. In particular, major projects such as Inland Rail and the state’s renewable energy zones bring short-term population surges to inland towns.
“Towns along the Inland Rail are booming,” Guiney said. “Water is a critical and essential service, and economies cannot grow without it.”
“Some councils need to upgrade their infrastructure so they can support these workers,” Guiney said.
Workforce shortages are another major concern.
“The local government water sector finds remuneration challenging,” he said.
“We are competing with mining, agriculture and major construction projects.”
A statewide survey carried out with the New South Wales Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) identified significant gaps.
“It showed at least 15 per cent shortages in regional New South Wales,” Guiney said.
In response, the Water Directorate is developing a long-term workforce roadmap.
“We are working on government-funded traineeships and apprenticeships,” he said. “We need councils to be more aware of workforce trends.”
Regional collaboration also continues to play a critical role, and Guiney said alliancing has been quite successful.
“It helps small councils share knowledge and resources.”
How does state legislation affect local water delivery?
At the recent SWAN APAC Workshop, Guiney highlighted the importance of understanding the relationship between state law and local government operations.
“The state writes the laws governing local government,” he said. “It is critical that we liaise with both state and local governments.”
Regulatory reform is a core part of the Directorate’s Strategy 2030 with Guiney stating that “better regulation principles make our work more effective”.
Emerging contaminants, such as PFAS, are another issue, posing new challenges for Councils.
“Several small towns now exceed revised drinking water guidelines,” he said. “PFAS also affects biosolids and wastewater.”
He said compliance is becoming increasingly expensive and can challenge affordability for regional communities.
What new funding models could support regional utilities?
Funding reform is a major issue for regional water in New South Wales.
“The Productivity and Equality Commissioner assessed alternative funding models,” Guiney said. “At least 16 small utilities will need a community service obligation.”
He said the state government and the Directorate are now working through a co-design process.
“We are looking at how that funding gap can be met,” Guiney said.
“Smaller councils do not always have the capacity to run regional projects.
“We need to incentivise collaboration so councils can work together.”
As the conversation turns to the future, the need for sustained investment becomes clear.
“Regional communities deserve safe and reliable water services, regardless of their size,” Guiney said. “If we make the right investments now, the next generation will inherit stronger, safer and more dependable systems right across regional New South Wales.”