Water policy and regulation reform drives the next era of efficiency

At the AWA/IWA Water Efficiency Conference 2025 in Melbourne, leaders from the UK, US and Australia shared how water policy and regulation reform is shaping future efficiency, resilience and collaboration across borders.

Global experts at the AWA/IWA Water Efficiency Conference 2025 say a new generation of policies and partnerships will determine how nations balance growth, equity and environmental protection.

Water regulation is undergoing its most significant shift in decades. From new metering mandates in England to sweeping compliance standards in California, governments are reevaluating how to strike a balance between resource protection and economic growth. Speaking at the Policy and Regulation (1) session, international experts agreed that reform now means more than rewriting rules; it requires rebuilding trust and redefining accountability.

Moderator Aaron Burton, Head of Water Efficiency Innovation at Ofwat (UK), said the sector’s ability to evolve depends on “getting the data, using the data and communicating it clearly.” His presentation highlighted the rollout of 10.4 million smart meters across England and Wales, part of a national framework that mandates interoperability and shared standards.

“These programs are not just about technology,” Burton said. “They’re about consistency, governance and giving customers confidence that the data they share will drive real outcomes.”

Burton emphasised the importance of linking digital transformation to social outcomes. Ofwat’s Water Efficiency Lab is testing new behavioural approaches to encourage participation.

“We need smarter standards and smarter engagement,” he said. “People don’t just want to be told how much water they use. They want to understand why it matters.”

A paradigm shift in England

Aiken Besley, Senior Advisor for Water Resources at the Environment Agency (UK), argued that England’s current drought conditions and rapid development are pushing regulation into a new frontier.

“Within England, despite stereotypes, water is no longer an abundant resource,” Besley said. “Its near-term availability poses challenges to growth and environmental protection alike.”

He explained that climate extremes, housing expansion and new industries such as data centres and hydrogen production are testing the limits of existing water rights and planning frameworks.

“Reducing water demand through ambitious leakage reduction and widespread efficiency is now the primary near-term route to protect the environment and enable growth,” Besley said.

According to Besley, around 70 per cent of England’s forecast water deficit can be addressed through customer and distribution-side savings, including metering, leakage control and water-efficient technologies. However, he cautioned that success hinges on public trust and political will.

“The biggest challenge we face is not technical; it’s cultural. We must embed the value of water across planning, policy and community consciousness.”

Regulation through collaboration

From the United States, Maureen Erbeznik, Principal of Maureen Erbeznik & Associates, described California’s ambitious SB 606 and AB 1668 legislation as a test case for regulatory transformation.

“These laws represent one of the most aggressive water efficiency frameworks in the world,” she said. “They combine indoor, outdoor and industrial standards under a single statewide performance objective.”

Erbeznik stated that, while the framework offers substantial environmental benefits, its implementation has been challenging.

“Compliance is complex and labour-intensive,” she explained. “Agencies need new workforces, funding mechanisms and analytics capacity to deliver results.”

California’s laws require every urban retail supplier to develop a customised Urban Water Use Objective based on its climate, customer mix and infrastructure. By 2040, suppliers must meet progressively stricter targets for indoor and outdoor consumption.

“This is not just regulation,” Erbeznik said. “It’s a cultural shift in how we think about shared responsibility.”

She also noted that the regulations are forcing agencies to rethink how they support their customers.

“We can’t rely on pricing alone,” she said. “Effective communication, incentives and equity programs will determine whether these policies succeed.”

Building integrated frameworks

Valerie Miller, Technical Expert at Olsson (US), brought the conversation back to governance and integration. Her work with cities across North America demonstrates that regulation is most effective when utilities, developers, and planners align around shared goals.

“Most communities have multiple plans such as land use, stormwater, drought management and asset management that rarely speak to each other,” Miller said. “Regulation should not create more silos. It should align them.”

Miller’s Integrated Water Toolbox approach brings together economic development officers, engineers and community representatives to identify overlapping priorities.

“We encourage cities to assess supply, staffing and resources together,” she said. “When everyone works on the same timeline, communities can see water efficiency as part of economic resilience, not a barrier to it.”

Her conclusion echoed the sentiment of the entire panel: policy must move from compliance to collaboration.

“Regulation should be less about enforcement and more about enabling partnerships,” she said. “When we plan with the community, we plan for success.”

Lessons for Australia

For Australian utilities and regulators, the panel offered valuable parallels. The UK’s experience with coordinated standards mirrors ongoing national discussions about smart metering interoperability. At the same time, California’s workforce and funding challenges echo those faced by Australian water retailers balancing equity and cost recovery.

As demand pressure grows across south-eastern Australia and new housing corridors accelerate development, the need for integrated planning is increasingly urgent.

“We must look at water not as an isolated utility but as part of the social and economic fabric,” Tom Mollenkopf AO observed during the session’s closing remarks.

The global conversation is clear: water policy and regulation reform is no longer optional. It is the foundation for resilience in a changing climate and a shared responsibility across governments, industries and communities.

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