The Australian federal government has formally directed the Productivity Commission (PC) to conduct a national water inquiry, tasked with keeping the country's water services secure, affordable and sustainable in the face of mounting pressures including climate change, population growth and competition from emerging industries.
Formally commissioned by Treasurer Jim Chalmers under the Productivity Commission Act 1998 and the Water Act 2007, the inquiry will be led by Commissioner Joanne Chong, who brings extensive experience in sustainable resource management and water issues. She will be supported by Associate Commissioner Dr Paul Wywroll, a Research Fellow at the ANU Institute for Water Futures specialising in water economics and governance across Australia and the Asia-Pacific.
The terms of reference set a wide-ranging agenda. The PC is asked to examine pricing frameworks, economic oversight and regulatory design, governance structures, and regional equity — with particular attention to the structural challenges facing remote and regional utilities. The inquiry must also factor in broader policy goals including housing supply, the net-zero transition, National Closing the Gap targets, and the water demands of fast-growing industries such as data centres.
For the first time, the PC has been explicitly asked to assess how water service providers can continue delivering affordable services while remaining financially sustainable over the long term.
The review will also fulfil a statutory obligation under the Water Act 2007, evaluating government progress against the 2004 National Water Initiative, and will feed into the development of the new National Water Agreement — currently awaiting sign-off from state and territory governments.
Its findings will inform updated national guidance on water pricing and independent economic regulation, with jurisdictions already commencing work to refresh Australia's broader water policy framework.
Public consultations are open via the PC's website, with submissions due by Friday 24 April 2026. The final report is due to the Treasurer by 4 September 2026.
