Cowra households could face water charge increases of nine per cent above inflation if government funding is not secured for major infrastructure works, with Council warning its small customer base cannot afford to shoulder the growing cost of maintaining the town's water supply alone. Council's financial modelling indicates water charges would need to increase by nine per cent above the Consumer Price Index (CPI) to maintain long-term financial sustainability without a 50 per cent government subsidy for major risk-management capital works. With that subsidy, the required increase would fall to 2.5 per cent above CPI, highlighting the significant financial consequences government funding decisions could have for local households. The warning comes as Cowra residents already face comparatively high water costs, with a typical residential water bill of approximately $1,000, well above the NSW weighted median of $724. Cowra's water charges place it among the most expensive 20 per cent of local water utilities in NSW, adding to concerns about how households would manage further increases. The financial pressures were outlined as Cowra Shire Council considered a Local Government NSW advocacy plan calling for renewed state investment in water and sewer infrastructure across regional communities. The plan comes following the full allocation of the NSW Government's $1.1 billion Safe and Secure Water Program, established in 2017, with no replacement funding program announced in the material presented to Council. For Cowra, the funding uncertainty comes as major infrastructure needs remain across water security, treatment, sewerage and ageing assets. Projects identified include the Billimari borefield connection, the West Cowra sewer system and upgrades to ageing water mains, pumps and reservoirs. Council's report warns that its relatively small customer base cannot reasonably be expected to fund the necessary infrastructure works without continued State and Federal Government assistance. The financial modelling illustrates the potential consequences for residents, although the report does not establish how many years the above-inflation increases would be required or the resulting dollar impact on individual household bills. Councillor Ruth Fagan said the challenges facing regional water utilities had been discussed for decades without sufficient progress. "I've been on council for 20 years, and ever since I got on council, we've been talking about water supply," Cr Fagan said. "We've had reviews, we've had planning meetings, we've had different corporate identities, we've had committees. We've had everything that you could possibly imagine, and nothing has changed." Cr Fagan said many water utilities across NSW were more than 50 years old and had received intermittent repairs rather than the investment needed to modernise essential infrastructure. "Local government has been putting band aids and stopgaps and holding their fingers in the dike for the last 20 years," she said. She argued that maintaining safe and reliable water services should be a shared responsibility between state and local government rather than a growing financial burden on regional councils. The statewide advocacy plan calls for six measures to strengthen water infrastructure and service delivery, including a $15 million regional water workforce development program. Cr Fagan said the proposals would benefit Cowra and provide a clearer indication of what councils needed from the NSW Government. "This is actually a really good plan for the state government to provide us water for at least 10 years," she said. Councillor Nikki Kiss questioned how the infrastructure funding problem had been allowed to reach its current scale. The meeting heard estimates of approximately $1 billion in immediate water infrastructure requirements across NSW, alongside a further $5 billion in needs over the following decade. "We're dealing with huge figures here," Cr Kiss said. "I actually have to wonder who has dropped the ball on this one. "How did we end up with $1 billion in funds down with another 5 billion in backlog?" Cr Kiss said the size of the problem raised serious questions about long-term planning and investment. "That hasn't happened overnight," she said. "It's disappointing that it's actually got to this stage and hasn't been continually addressed and raised over the years." He also raised concerns about the availability of federal infrastructure funding, recounting a discussion with an adviser to the Commonwealth Water Minister during a visit to Canberra. Cr Smith said he had been told the National Water Grid had secured funding for staff over 10 years but had no funding available for projects, which would instead need to proceed through state government processes. The Mayor described that arrangement as unusual, adding to councillors' concerns about how regional water infrastructure projects would be funded. Deputy Mayor Cheryl Downing warned the issue could also affect Cowra's future growth, particularly as councils were being encouraged to plan for additional housing. "It is very important the state government gives us support," Cr Downing said. "They've been encouraging us to do housing strategies. "They've been giving grants for that kind of thing, and this kind of infrastructure is going to help our town grow." She said the end of the Safe and Secure Water Program made renewed funding particularly important for rural and regional councils. "It is the end of the Safe and Secure Water Program, which was established in 2017, but there's been no new replacement program announced as yet," she said. Councillor Peter Wright also supported the advocacy plan, arguing the absence of a replacement program raised questions about how future infrastructure risks would be managed. He said the funding requirements highlighted the importance of maintaining essential services and ensuring NSW communities continued to have access to safe and secure water. Beyond the immediate cost to households, the infrastructure challenge could have longer term consequences for Cowra's ability to accommodate new housing and economic development. Council's report identifies continued investment in water and sewer infrastructure as essential to supporting future growth, while the statewide advocacy campaign warns that inadequate infrastructure could restrict housing delivery. The issue leaves regional councils facing difficult choices between funding major upgrades, delaying necessary works or recovering more of the costs from their existing customers.
