The Water Management Act has been amended to strengthen water compliance in NSW by providing NRAR with additional tools to protect water resources. The full suite of changes took effect on 1 January 2026.
Why this matters
Water users and communities across NSW rely on a regulator that is capable and ready to act. These changes give NRAR the tools to enforce the rules and respond decisively when someone breaks the law. If you take water unlawfully in NSW, you will be held to account.
What’s changed
Civil penalties introduced: Courts can now impose civil penalties instead of criminal prosecution. These penalties are tiered to match the seriousness of the breach and can be very high - up to nearly $5 million for individuals and nearly $10 million for corporations.
- New offences:
- Giving false or misleading information
- Interfering with seized items.
- Benefiting financially from someone else’s breach.
- Blocking or threatening authorised officers
- Charges for illegal water use: The NRAR can levy a new charge when water is taken unlawfully.
- Courts have stronger powers: They have an improved ability to order offenders to give up any money made from breaking water laws. They can also cancel licences or require community benefit projects.
- Improved investigation tools: NRAR can use drones for inspections, serve documents by email, and issue compliance cost notices.
- Licences: NRAR can more readily suspend or cancel licences if it thinks a breach has happened.
- Metering rules clarified: Stronger requirements are now in place for installing meters and for qualified professionals to certify their accuracy.
What this means for you
Most water users do the right thing, and NRAR appreciates that. These changes aim to protect everyone: the environment, communities, and lawful water users. They ensure the rules are clear and the consequences are real for those who wilfully break them.
More information
- Read the full legislation that has changed the Water Management Act and other Acts and regulations.
- Learn how NRAR responds to breaches of the law to keep NSW water fair and sustainable.
FAQs
What are the new penalty amounts?
Penalties change based on how serious the offence is and if the offender is a corporation or an individual. Examples include:
- Civil penalties for taking water unlawfully: up to $9.99 million for corporations and $4.99 million for individuals. Alternatively, it could be five times the value of the water taken, whichever is higher.
- Local Court limit on criminal penalties: up to $220,000 for corporations and $110,000 for individuals.
- NRAR may issue a charge for up to 5× the value of water taken unlawfully.
What are civil penalties and how do they work?
Civil penalty proceedings are court actions.
They let the Court impose large fines for serious non-compliance. They relate to actions that are already illegal, mostly Tier 2 strict liability offences.
Civil penalties sit alongside, not instead of, criminal prosecutions, giving NRAR flexibility to choose the most effective response. They can lead to bigger financial penalties, which helps deter wrongdoing, especially for businesses.
Domestic and stock rights are unchanged and specifically excluded.
Civil penalty maximums:
- For corporations: up to $9,999,000 or 5× the value of water taken
- For individuals: up to $4,999,500 or 5× the value of water taken
These high amounts ensure the cost of breaking the law outweighs any financial gain, supporting a fair and sustainable water system for all.
What does “strict liability” mean under NSW water laws?
A strict liability offence is one where the prosecution does not need to prove intent. They only need to prove that the unlawful act took place.
What types of offences attract higher penalties?
Higher penalties apply to offences with significant impacts, including:
- Unlawful water take
- Meter tampering or misuse
- Harming waterfront land or aquifers
- Breaching licence or approval conditions
These activities disrupt fair water distribution, damage the environment, and erode community trust in water management.
What is a “monetary benefit” penalty and when is it applied?
A monetary benefits order makes an offender pay back money they gained from illegal activities. This could include profits from crops grown with unlawfully taken water. The court can apply these orders to both offenders and, under the new laws, related persons (e.g. company directors) who benefited financially from a corporation’s offending. This ensures no one profits from breaking water laws.
What is attestation?
The new bill requires license holders to report their total water take. This is true even if it may show possible non-compliance.
Licence holders must declare how much water they’ve taken. For example, they might say, “I’m licensed for 30 ML; I took 25 ML.” This is like filling out a tax return.
If I ask NRAR staff a question, am I at risk of admitting to an offence (self-incrimination)?
Outreach and Education officers assist water users. They can answer general questions about obligations. This support is available on-farm, at field days, or during targeted education sessions for water user groups.
If a question suggests serious or harmful non‑compliance, officers must escalate it. They cannot ignore it. For minor or non-harmful issues, officers will follow guidance. They will focus on education or give warnings. They must act on indications of serious non‑compliance. NRAR will continue a risk‑based approach.
What are the new “matters to be considered” when courts impose penalties?
Courts now consider:
- Impacts on Aboriginal cultural, spiritual, social, or economic use of land and water
- Harm, likely harm or potential harm to the environment, water sources or waterfront land
- Drought conditions, even if formal restrictions have not been declared
These considerations ensure sentencing reflects the full consequences of unlawful water activities.
How does NRAR ensure consistency and fairness in applying penalties?
NRAR uses a risk-based approach to regulation. It picks the right tool, like a warning, penalty notice, civil penalty, or prosecution, based on how serious the conduct is.. This is described in the NRAR Regulatory Policy and Prosecution Guidelines. NRAR follows clear legal processes and uses evidence-based methods, like prescribed water-volume methods. The law sets out what penalties apply for different breaches. Appeals processes are in place for charges issued by NRAR . They ensure transparency and accountability.
What do water users need to do to stay compliant?
- Take water only as authorised
- Use, maintain and report metering correctly
- Follow all licence and approval conditions
- Be truthful and cooperative with NRAR officers
- Avoid interfering with infrastructure or investigations
- Act promptly if you identify an issue – fix non-compliance early
- Stay informed about changes to water laws