State-owned entities own and operate the majority of bulk water infrastructure. Water entities are a mix of government owned corporations and statutory bodies. Some operate to achieve a profit and others are not-for-profit entities. They all generate revenue from charging their customers for their services, based on recovering costs associated with their activities. Water entities own infrastructure that is considered critical for economic activities and services to Queenslanders. Outside of some major urban areas, water is provided to the community by local governments. 

To meet demand associated with future population and industry growth, there are major water projects planned across Queensland’s water entities and local governments. There are also significant costs from the need to maintain the safety and quality of dams owned by the state. In our report Local government 2024 (Report 13: 2024–25), we reported that the water infrastructure at roughly half of Queensland’s councils had fallen below the target range for asset consumption, meaning that further investment in water infrastructure is required.

This will be our first sector-specific water report since 2021. In previous years, the results of water entities were reported in our State entities reports. The report will analyse water entities’ financial performance, and include assessments of their internal controls, infrastructure projects, pricing developments, and other sustainability implications impacting the entities during the year.

Each year our reports will build on focus areas from our previous reports and emerging issues in the water sector. This year we will focus on the:

• status of infrastructure projects, including the dam safety program
• financial implications arising from pricing reviews 
• readiness of water entities for climate reporting.

Other areas we may analyse further this year include:

• accounting for developer donated assets in a regulated asset environment
• analysing the age and remaining useful lives of infrastructure assets and budgeted maintenance across the water sector
• analysing the asset consumption ratios of water infrastructure assets in Queensland, which may include some local governments.