What to do now
Official rules: NSW Government, Connection and supply of water to rental properties. Tenant summary: Tenants' Union, Utilities. Keep paying rent. If you dispute a charge, write first, then NSW Fair Trading (13 32 20), then NCAT (application $64, or $16 with a concession card as at 1 July 2026).
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Check the five gates before you pay. Separately metered? Water efficiency met (including dual-flush toilets with a minimum 3-star WELS rating from 23 March 2025, and showerheads / kitchen or bathroom basin taps at 9 L/min or less)? Did you get a copy of the supplier bill (or other evidence of usage cost)? At least 21 days to pay? Was the request made within 3 months of the water authority bill? If any gate fails, say so in writing and keep a copy.
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Check the condition report and meter. The opening meter reading should be on the condition report so you are not paying a previous tenant's usage. Note any leaks, missing aerators, or single-flush toilets in writing.
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Pay water usage separately from rent when the charge is valid. Do not roll it into rent unless you and the landlord agree in writing.
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If the charge is invalid or too high, reply in writing (email is fine). Cite the missing gate. The Tenants' Union has a sample letter for no separate meter. Keep photos of fixtures and the meter if you can.
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If they insist, contact NSW Fair Trading, then apply to NCAT for orders about the charge. For suspected leaks or a high bill, also contact your local water provider. Energy and Water Ombudsman NSW (EWON) is 1800 246 545 for supplier disputes.
Worked example
Alex gets an agent invoice for $220 water usage with no bill attached. The unit shares a meter with the flat next door. Alex emails the agent the same day: no separate meter, so no usage liability under the Residential Tenancies Act 2010 (NSW), and asks for the invoice to be withdrawn. The agent sends Sydney Water bill pages showing a single meter for both units. Alex refuses payment, lodges a Fair Trading complaint if pressure continues, and keeps paying rent. If the flat had been separately metered, met water efficiency, and the agent had attached the bill within 3 months with 21 days to pay, Alex would have paid the usage amount only (not the service charge).
When a landlord can pass on water usage
Under the Residential Tenancies Act 2010 (NSW) and the NSW Government water rules, a landlord can ask for water usage only if:
- The premises are separately metered (or water is delivered by vehicle)
- The premises meet prescribed water efficiency measures
- The amount is not more than the landlord was billed for usage
- You are given a copy of the relevant part of the supplier bill, or other evidence of the cost of water you used
- You are given at least 21 days to pay
- The landlord or agent requests payment within 3 months of the water authority issuing the bill
If any of those fail, you do not have to pay usage. The landlord still pays water supply service charges and sewerage supply service charges (other than pump-out septic in the usual case).
Separately metered and water efficiency
Separately metered means a meter that measures water used only at your premises, can support a separate bill, meets any prescribed Australian Standard, and was installed properly.
Water efficiency (Tenant and Fair Trading summaries):
- Showerheads, kitchen sink taps, and bathroom hand basin taps: maximum 9 litres a minute
- All toilets: dual flush with a minimum 3-star WELS rating (from 23 March 2025)
- No leaking taps, toilets, or showerheads at the start of the tenancy; report new leaks in writing
You can roughly test a tap with a container and a timer. Do not remove or tamper with efficiency devices.
Disputes, Fair Trading, and NCAT
Write first. Keep paying rent. NSW Fair Trading can take complaints about invalid charges and related tenancy issues. NCAT can decide disputed water charges and related orders. Application fee for residential proceedings is $64, or $16 with a concession card (as at 1 July 2026). Most people represent themselves.
Social housing water rules can follow ministerial guidelines instead. Ask your provider for their policy.
Where to get help
NSW Fair Trading: 13 32 20
Connection and supply of water to rental properties · How to improve water efficiency in rental properties
NCAT: ncat.nsw.gov.au or 1300 006 228
Fees
Tenants' Union of NSW: Utilities factsheet · 1800 251 101 (outside Sydney metro), (02) 8117 3700 (Sydney metro)
EWON: 1800 246 545