8.5.1 Institutional Arrangements

8.5.1.1  Local government recognises that water is a resource that should be shared equitably across each region through institutional arrangements that best facilitate efficient service delivery and resource use.

8.5.1.2  The State Government must ensure that no community is substantially disadvantaged in terms of basic access to, and price of a reasonable supply of potable water, as a community service obligation.

8.5.1.3  Local government believes that water demand and supply planning across the State, including the establishment of adequate levels of service provision to the community, should be lead by the State Government, with active involvement of Local Government as a key stakeholder.

8.5.1.4  Where reform of current institutional arrangements is considered necessary to enhance security, sustainability and efficiency of water services, there should be full consultation with the LGAQ and all local governments likely to be affected by any proposed changes.

8.5.1.5  Local Government believes that any change in current water institutional arrangements should seek to build on existing roles, responsibilities and relationships reflecting the existing partnership approach between the State and local governments and amongst local governments.

8.5.1.6  Where regional water supply schemes across a number of Councils are necessary, Joint Local Governments or Local Government owned corporations are the preferred approach rather than a separate Statutory Authority.

8.5.1.7  The role of individual Councils in water retailing should be maintained in any changes to institutional arrangements.

8.5.1.8  Where any water infrastructure is subsumed into new bulk supply institutional arrangements, there should be a guarantee of full compensation for current owners.

8.5.2 Funding Arrangements

8.5.2.1  Local Government will advocate that the Commonwealth and State Governments, through COAG, must recognise the need for greater capital investment in water infrastructure to meet future needs and foster regional development.

8.5.2.2  Local Government requires openness and transparency in assigning externality charges to water providers.  Externalities include environmental costs as well as water resource planning and management costs. 

8.5.2.3  Local Government will advocate for the return of revenue raised from National Water Agreement imposed externality charges to ongoing investigations and planning as well as investment in future water infrastructure needs including dam safety upgrades.

8.5.2.4  Local Government will seek contributions to the cost of long term regional water infrastructure through instruments such as the development of infrastructure charges plans.

8.5.3 Pricing Regime

8.5.3.1  Local Government accepts that significant Local Government water retailers should be subject to price oversight by an independent body.  However, retail water pricing must remain the responsibility of each water retailer, recognising the varying circumstances that exist.

8.5.3.2  In setting retail prices, Local Government recognises the need for pricing regimes which encourage efficient use of water resources.  This will generally be achieved by use of two-part tariffs including, where appropriate, inclining block tariffs.

8.5.3.3  Where separate institutional arrangements exist for bulk water supply within a region, a common "postage stamp" approach to pricing is generally preferred by Local Government rather than one based on differential nodal pricing.

8.5.4 Operations

8.5.4.1  Local Government is committed to best practice in water use, implementation of sustainable urban water management and development of strategies to:

• reduce demand for water to improve the efficiency of use;
• reduce supply losses; 
• increase the re-use of water; 
• increase use of stormwater for urban and household demands;
• improve community awareness of water management issues.

8.5.4.2  Where regional arrangements for bulk water supply exist, Local Government accepts that there should be common rules set for supply restrictions and minimum service levels by the body responsible for water supply planning.

8.5.4.3  Time of day tariff structures for electricity should be available to allow Local Government to minimise operating costs of water supply and sewerage systems.

8.5.4.4  Local Government is committed to rationalising the system of water information reporting by local government to reduce inefficiencies, eliminate duplication of reporting mechanisms and improve information for water planning and security.

8.5.5 Sewerage Management

8.5.5.1  Local Government recognises that it has primary responsibility for the collection, treatment and disposal of effluent in urban areas.

8.5.5.2  Local Government acknowledges that effluent should be treated to a standard that prevents it from having a significant adverse impact on the receiving environment and that meets any relevant legislative requirements.

8.5.5.3  Any increases in the standard of treatment required for effluent should be phased in over an appropriate period and be accompanied by an appropriate level of State or Federal Government funding.

8.5.5.4  Local Government fully supports the beneficial reuse of sewerage as a strategy to mitigate the adverse environmental effects of releasing treated sewerage to waterways and as a strategy to achieve sustainable urban water use.

8.5.5.5  Decisions relating to the options pursued for the reuse of effluent should remain within the jurisdiction of Local Government.

8.5.5.6  Local Government supports a State Government licensing regime that is based on mass loads of nutrients released to receiving environments.

8.5.5.7  The reuse of greywater in sewered areas should only occur where Local Government can be satisfied that the public health implications and soil and climatic conditions can be appropriately managed.