A NSW Government website

Local water utilities

Pricing and dividend payments

A summary for local water utilities about setting pricing, levying developer charges and paying dividends to its local council owners.


Pricing and dividend payments for local water utilities

An overview for local water utilities on pricing, developer charges and how a council-owned local water utility may pay a dividend as a return on investment.


Setting reasonable prices and managing finances responsibly are essential to ensure that local water utilities have enough money to provide services effectively and maintain appropriate standards over the long term, keeping the water supply and sewerage businesses financially stable. The pricing system should also communicate clearly to customers about the financial and environmental effects of their water usage, encouraging them to use water resources wisely.

More about pricing

Payment of dividends from water supply and sewerage business

A council-owned local water utility may pay a dividend to its owner council(s) as a return on investment. Section 4 of the Regulatory and assurance framework for local water utilities (PDF, 1100.53 KB) — Guidelines for Council dividend payments for water supply or sewerage services — describes how dividends can be paid.

More about paying dividends

Review of local water utility dividend requirements

The department is reviewing the eligibility criteria, calculation methods and other requirements that apply to dividend payments by local water utilities.

Read about the review

Regulatory and assurance framework

The regulatory and assurance framework is designed to make sure that local water utilities manage risks effectively and strategically. It applies to local water utilities in regional NSW.

More about Regulatory and assurance framework