New Water Policy and Practice Volume 1, Number 2 - Spring 2015 | Page 80

Water Industry (Law) Reforms

Commission 2011) review noted that efficiency gains may be attributed to improving
the performance of institutions in relation to governance, regulation, procurement of
supply and pricing, rather than by an attempt to create a competitive water market.
However, nationally, the capacity of Australia's water sources and infrastructure to satisfy
demand in urban areas has been seriously tested by a number of immediate and longerterm stresses including extended droughts, growing populations, aging infrastructure
and climate change (Productivity and Commission 2011). The report concludes that
conflicting objectives and unclear roles and responsibilities of institutions in the
urban water sector have contributed to an inefficient allocation of water resources and
investment, an undue reliance on water restrictions and costly, often poorly targeted
conservation programs. In some states there appears to be a lack of transparency about
the way government objectives and policies are being applied, with multiple objectives
being assigned to their agencies, utilities and regulators, with inadequate guidance
being provided on how to make tradeoffs between these objectives (Productivity and
Commission 2011).

The Productivity Commissions review went further suggesting that the urban
water sector was also characterised by a high degree of political involvement, largely
due to public perceptions of water (as different from other utility services). Despite
the significant criticisms levelled by the Productivity Commission, water reforms have
continued to be at the forefront of government policy in WA, and a large number of
reforms have been implemented in the 20 years since the signing of the 1994 COAG
agreement. These reforms have occurred in water source protection, environmental
health, risk management, water conservation, public awareness, pricing, and licensing.
This has enabled WA to progressively improve the management of its water resources.
Under the revised licensing conditions27, linked to the on-going reforms the providers
of drinking water, mainly the Water Corporation, Busselton Water, Bunbury Water (and
other smaller localised providers) are required to provide an annual water quality report.
Although the responsibility for ensuring that drinking quality standards are maintained
rests with DoH in WA, the conditions of