Sydney families are set to be slammed with a major hike in water bills – with charges soaring by 13.8 per cent next year in yet another blow to households already drowning in a cost-of-living crisis.
The Independent Pricing and Regulatory Tribunal confirmed on Wednesday that average water and wastewater bills will surge by $168 in 2025–26, jumping from $1,220 to $1,388.
By the end of the decade, annual bills will climb to a staggering $1,695.
While IPART claims the increases are still lower than what Sydney Water originally wanted, the hikes come as the city’s booming population heaps pressure on ageing infrastructure.
Greater Sydney has swelled by more than 326,000 people since 2021, with migration driving record demand for water.
The regulator said Sydney Water needs more revenue to expand pipes, reservoirs and treatment facilities, while also meeting environmental standards and delivering services to fast-growing suburbs.
The tribunal has urged the NSW Government to expand rebates for concession card holders and low-income households.

Water bills for Sydney residents are set to rise by $168 between 2025 and 2026 (stock)

High levels of migration over the last 5 years have put a strain on Sydney Water’s infrastructure
Overseas migrants are accounting for more than 80 per cent of the population growth in Sydney and Melbourne – putting pressure on transport and water infrastructure.
In Sydney, Australia’s most populated big city, 120,886 overseas migrants moved in during the last financial year – making up 81 per cent of the net population increase.
In Melbourne, 121,240 migrants moved in during the same period, making up 80.7 per cent of the population growth.
Both cities are overcrowded with 41,086 Sydney residents leaving for another part of Australia over the year to escape the congestion and unaffordable housing.