Funding infrastructure to service growth policy

Policy document number: 1260459 Version: 8 Last updated: 29 September 2025

1. Overview

1.1 At a glance

Developers construct new mains that become part of Sydney Water's ('our') network. Sydney Water ('we') then manage and maintain these assets going forward. Generally, developers hand over smaller assets to us free of charge, but we pay for larger trunk assets. Our Growth Servicing Plan (GSP) and this policy explain exactly what we pay for.

1.2 Scope

Our policy applies to all developers who are building water, wastewater, stormwater and recycled water infrastructure needed to service urban growth. It applies equally to greenfield and brownfield areas.

Our policy doesn't apply to:

• developments under the Water Industry Competition Act 2006 where we aren't the service provider
• minor service extensions applicants, because the funding structure for these is set by the Independent Pricing and Regulatory Tribunal (IPART)
• infrastructure constructed by our Priority Sewerage Program
• any works delivered under the scope of Minor Works Sewer

1.3 Objective

Our policy helps developers understand who pays to construct the water, wastewater, recycled water and stormwater infrastructure needed to service urban growth. View our funding infrastructure to service growth examples. 

2. Policy in detail

The funding of infrastructure depends on whether the works will be constructed under a commercial agreement.

2.1 Funding of infrastructure covered by a commercial agreement

If a developer wants to service land ahead of our Growth Servicing Plan (GSP), they can negotiate a commercial agreement with us. Under this agreement, the developer will be responsible for constructing the trunk infrastructure to our requirements.

The GSP outlines the circumstances where we'll pay 'reasonable and efficient' costs of this infrastructure. These principles allocate risk to the developers when they develop land 'out of sequence'. (Note: This can include a recycled water scheme where the scheme is regulated by IPART.)

Developers must follow the process outlined in the GSP to accelerate the servicing of their land 'out of sequence'. The decision to enter into a commercial agreement will always be at our discretion.

2.2 Funding of infrastructure not covered by a commercial agreement

Developers will fund the design, construction and commissioning stages of infrastructure.

When the developer transfers ownership of this infrastructure to us, we'll pay the developer for infrastructure under this policy.

This includes reasonable overheads but excludes the cost of the developers share of minimum reticulation outlined below.

Our principles for funding

We have two principles, they are:

1. Developers are required to pay for minimum reticulation serving their land.
2. Developers aren't required to pay for infrastructure that provides capacity for other developments or provides frontage or a connection point to either another developer's land or a potential developer's land.

The minimum amount we'll pay

We'll pay a minimum of $5,000 for professional services and construction costs. This ensures the cost of procuring works in line with our procurement guidelines doesn't exceed the value of the reimbursement.

The allocation of professional service charges

The allocation of professional services must be set out in the Project Brief Package referred to in our procurement guidelines. This will be determined in the same way as the allocation of the design fees, unless we determine otherwise.

Our criteria for funding

1. We will fund 100% of
   • Lead-in and lead-out mains that serve other land;
   • Costs to upsize reticulation mains above minimum reticulation; or
   • Major infrastructure, such as pumping stations, storage reservoirs or treatment plants.
2. The developer will fund 50% of the costs associated with the section of the minimum reticulation that serves other land, as well as the developer's land. We will fund the other 50% of the costs. For example, this may include a section of a water main that serves land on the opposite side of a road to the development, or a wastewater main along the development boundary that also drains an adjoining lot.
3. The developer will fund 100% of any minimum reticulation that serves the developer's land exclusively, and hand it over to us free of charge
4. Other considerations
   • We'll treat lead-in and lead-out mains, within the developer's land that don't serve other land, as minimum reticulation and determine funding using criteria 2) and 3). Any upsizing of these mains will be funded using criteria 1b).
   • We won't fund the cost of amplification or adjustment of stormwater assets.
   • We'll consider funding interim infrastructure on a case-by-case basis, (except where excluded by a Memorandum of Understanding (MOU) or Agreement with the applicant, for example, Transport for New South Wales (TFNSW) or Local Government Association).
   • The applicant will fund all adjustments and deviations to our existing mains, except where the funding is covered by a MOU or Agreement with that applicant. A developer or applicant may be required to upsize an existing main as a part of an adjustment or deviation. We'll fund the difference in cost between the existing pipe size and the larger pipe size for water, recycled water and wastewater assets only, except where funding is covered by an MOU or Agreement or those being adjusted or deviated are being constructed to the minimum size as required by the Codes. We will not fund design and project management costs in upsizing.
   • We will assess your funding application in line with criteria 1) to 3) above. We reserve the rights to make the funding decisions at our discretion.
   • Where we agree to fund infrastructure, the developer must use our procurement guidelines.

Intent of 'serve other land' for wastewater mains

'Serve other land' means that a direct service is provided to a property. The property in question would have a designated section of the wastewater main from which a future connection point or extension could be made. This enables the property to be connected to our wastewater system, supporting potential development or subdivision in the future.  

The 'other land' must be zoned for development and included in the wastewater catchment that is served by the main. Land designated as public open space, public recreation, is not considered as “other land”, although it may still have a connection point to our system.  

“Serve other land” does not mean having a wastewater main downstream from the developer's land that will transport wastewater flows from other land upstream of the developer's land. If an upsizing above the minimum sizing is required by the Code, we will fund the upsizing component (in line with criteria 1b)), as this portion is required to accommodate the wastewater flow from the upstream catchment. 

When a wastewater main is to be extended in the future, and the end of the wastewater main terminates past the boundary of the developer's land as required by the Codes, the wastewater main is not considered to “serve other land”. 

Intent of 'serve other land' for water mains

'Serve other land' means the section of the mains fronting a lot zoned for development and providing metered connection(s) to the development of that property. 

3. Definitions