National Water Initiative pricing principles

​​​​​The Natural Resource Management Ministerial Council endorsed the National Water Initiative (NWI) pricing principles on 23 April 2010.

The NWI pricing principles were developed jointly by the Australian Government and state and territory governments to:

  • provide a set of guidelines or road map for rural and urban pricing practices
  • assist jurisdictions to implement the NWI water pricing commitments in a consistent way.

They comprise 4 sets of principles:

  • Principles for the recovery of capital expenditure to provide guidance to water service providers on asset valuation and cost recovery for urban and rural capital expenditure.
  • Principles for urban water tariffs to provide guidance for price setting in situations where there are monopoly providers and the absence of competitive pressures.
  • Principles for water planning and management to provide guidance, for urban and rural water service providers, in identifying and allocating the costs of water planning and management activities between government and water users.
  • Principles for recycled water and stormwater reuse to provide broad policy guidance to stimulate efficient water use, in urban and rural settings, no matter what the water source.

The Ministerial Council's decision was made following consideration of a decision regulation impact statement, developed in accordance with the Council of Australian Government Best Practice Regulation Guidelines.

Reference the pricing principles as: NRMMC (Natural Resource Management Ministerial Council) 2010, National Water Initiative pricing principles.

National Water Initiative pricing principles

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