This review by PricewaterhouseCoopers for Infrastructure Australia identifies opportunities to enhance existing water supply security strategies and gives practical recommendations for change at federal, state and local government levels.

It found that all major capital cities were experiencing pressure from a demand–supply imbalance, triggering investment in supply augmentation projects and implementation of demand management initiatives. Most jurisdictions had plans in place to address future supply security. However, dispersed responsibility for achieving supply security had led to problems with coordination, duplication and inconsistency with government objectives.

The recommendations centre around improved planning frameworks, enhancements to water pricing, competition in urban bulk water supply, and promotion of consumer choice.

The review emphasises the imperative for policy makers to communicate the true cost of below-cost pricing to users and the requirement for strong leadership to get this message out and support change in public institutions.