Audit background

Water regulation aims to achieve sustainable environmental, economic and social outcomes from the management of water resources, consistent with the Water Management Act 2000. Following recommendations from reviews into allegations of water theft and regulatory failure, reforms were made to strengthen water regulation, compliance and enforcement – including the establishment of the Natural Resources Access Regulator (NRAR) in 2018. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) shares responsibility for issuing water access licences and approvals with WaterNSW.

Audit objective

This audit will assess the effectiveness of DCCEEW, NRAR and WaterNSW in implementing compliance and enforcement measures for the sustainable and integrated management of non-urban water use in NSW. This includes assessment of the following activities and functions:

• governance arrangements for the oversight and enforcement of water laws in NSW
• implementation and monitoring of water reforms since 2018
• policies and procedures used to regulate non-urban water use
• compliance and enforcement activities and practices of the regulator
• support, guidance and education provided to assist water users
• information management and data sharing to support effective regulation. 

The audit will not assess the development of water sharing plans, administration or trading of water licences, water pricing, or the management of urban water supplies.

Estimated tabling period

June 2026

Audited entities

• Department of Climate Change, Energy, Environment and Water
• Natural Resources Access Regulator
• WaterNSW.