Water Services Act 2012

The Act directly affects:

• Licensed water service providers across Western Australia, including the Water Corporation, Aqwest, Busselton Water, and private operators. They must hold licences, comply with conditions, and maintain supply obligations.
• Customers of water services, who benefit from the ombudsman scheme, service standards, and last resort supply protections.
• Landowners and occupiers, whose land may be subject to entry, works, or compulsory acquisition for water infrastructure under Parts 6-8.
• Local governments, who are notified before major and general works affecting their areas.
• The Economic Regulation Authority, which grants and enforces licences and approves the ombudsman scheme.
• The Minister for Water, who authorises major works, appoints suppliers of last resort, and oversees codes of practice.

Licensees must:

• Provide services within their operating area on request and maintain works in a safe and operable condition (section 21).
• Comply with asset management system requirements (section 24).
• Submit to operational audits (section 25).
• Comply with applicable codes of practice (section 26) and the code of conduct (section 27).
• Be members of an approved water services ombudsman scheme (section 70).
• Give notice of proposed major works and general works, and conduct required consultations before proceeding (sections 142 and 151).
• If a licence ends or is cancelled, leave the water service system in a safe condition (section 36).

Owners of land connected to drainage works must maintain drainage assets in functioning condition (section 112) and obtain licensee approval before connecting to or disconnecting from drainage works (section 111), with a penalty of $25,000 for non-compliance with the connection requirement.

Persons subject to inspector directions must comply and must not obstruct inspectors (section 43), on penalty of a fine of $7,500.

The Authority may:

• Grant, renew, transfer, amend, or cancel licences (sections 11-18) after considering public interest (section 46).
• Issue rectification notices and order monetary penalties for licence non-compliance (section 31).
• Designate areas for last resort supply (section 51) and ensure supply plans are in place.
• Approve or revoke approval of a water services ombudsman scheme (sections 65 and 67).
• Designate inspectors (section 210(1)) with powers to enter premises, examine documents, direct production of information, and seize relevant items (sections 40-41).
• Prohibit the use of non-compliant infrastructure (section 42(2)(a)) and arrange for its disconnection.

The Minister may:

• Grant exemptions from licensing (section 7).
• Make codes of practice (section 26).
• Authorise major works and general works proposals (sections 142 and 155).
• Authorise deviations from approved works plans (sections 158-161).
• Appoint a supplier of last resort (section 55) and approve supply plans (section 57).
• Acquire interests in land for licensed infrastructure under the Land Administration Act 1997 on the recommendation of the Minister (section 166).

Licensees have powers to enter land (Part 8) and provide, maintain, and remove water service works on that land (Parts 6-7). Works remain the property of the licensee even when placed on a third party's land (section 162).

State Administrative Tribunal reviews a wide range of licensing decisions (section 44), providing merits review of Authority and CEO decisions on licence conditions, rectification notices, penalty orders, and service disconnections.

Section 43 offences (failing to comply with inspector directions, obstructing inspectors, giving false or misleading information): fine of $7,500.

Section 111 (connecting or disconnecting from drainage works without approval): fine of $25,000, plus a daily penalty of $1,000.

Section 112 (failing to maintain drainage assets): fine of $5,000, plus a daily penalty of $250.

Section 31 (rectification and monetary penalty): The Authority may order a licensee to pay a monetary penalty for non-compliance with a licence condition, in addition to requiring rectification.

Section 34 (cancellation): A licence may be cancelled for serious default, including persistent non-compliance with licence conditions, after the licensee has had an opportunity to make submissions (section 32).

Regulatory offences under Part 11: Contravention of provisions in the regulations may be punishable by fines up to $10,000 for bodies corporate and $5,000 for individuals, with daily penalties for continuing offences (section 222).

Infringement notices may be used for certain offences relating to water use restrictions, with the Criminal Procedure Act 2004 Part 2 applying (section 221).

Licensing process. An applicant for a licence provides information required by the Authority (section 45). The Authority must consider public interest factors (section 46), give public notice of certain decisions (section 47), and must make licences available for inspection (section 48). Regulations may prescribe public consultation requirements (section 49).

Major works. A licensee proposing major works must publish notice in a newspaper and serve notice on affected landowners and local governments, giving at least 28 days for objections and submissions (section 142). The licensee must then submit the proposal to the Minister with a report on objections (section 144). The Minister may authorise or decline the works (section 145).

General works. A licensee proposing general works must give written notice to affected persons with at least 21 days for objections (section 151). The licensee submits the proposal to the Minister with a report (section 154), and the Minister may authorise or decline (section 155).

Exempt works. No prior notice or authorisation is required (section 156).

Enforcement. Where the Authority identifies non-compliance, it serves a rectification notice requiring remedy within a specified time (section 31(1)). The licensee may make submissions (section 32). If rectification does not occur, the Authority may arrange for remedy at the licensee's cost or commence cancellation proceedings.

Review. Most licensing and enforcement decisions are reviewable by the State Administrative Tribunal (section 44). Certain decisions are stayed pending tribunal review unless a dangerous situation exists (section 44(3)).

Ministerial review. The Minister must review the Act's operation after every fifth anniversary of commencement and table a report in Parliament (section 224).

• Land Administration Act 1997 (WA): Interests in land may be acquired for licensed water service infrastructure using Land Administration Act Part 9 as if for a public work (section 166). Public authorities may grant easements and licences over Crown land (section 165).
• State Administrative Tribunal Act 2004 (WA): The State Administrative Tribunal hears merits reviews of licensing and enforcement decisions (section 44).
• Criminal Procedure Act 2004 (WA): Infringement notice procedures under that Act apply to certain water use restriction offences (section 221).
• Criminal Investigation Act 2006 (WA): Inspectors exercising seizure powers are taken to be public officers under Parts 6 and 13 of that Act (section 41(2)).
• Water Corporations Act 1995 (WA): Transitional provisions operate alongside Schedule 5 Division 1 of the Water Corporations Act in relation to matters covered by both instruments.
• Corporations Act 2001 (Cth): Regulations may declare provisions to be Corporations legislation displacement provisions or declare matters to be excluded matters under sections 5G and 5F of the Corporations Act (section 222).
• Personal Property Securities Act 2009 (Cth): Regulations may exclude water services matters from the Personal Property Securities Act regime (section 222).
• Plumbers Licensing Act 1995 (WA): Regulations may require notice of plumbing work to licensees (section 222).

Property remains with the licensee on third-party land. Under section 162, water service works placed on another person's land do not become part of that land and do not vest in the landowner. They remain the licensee's property and can be removed. Purchasers of land containing water service infrastructure may find they do not own that infrastructure.

Exempt works still carry obligations. Licensees using the exempt works pathway under section 156 are relieved of prior notification requirements but remain bound by all other licence conditions, maintenance obligations, and safety requirements. "Exempt" means no prior process, not no regulation.

Dangerous situations override SAT stays. Applications to the State Administrative Tribunal for review of rectification notices or disconnection orders do not automatically halt the Authority's action if a dangerous situation exists (section 44(3)(b)). Licensees should not assume that filing a SAT application will preserve the status quo in an emergency.

Last resort supply costs fall on the failing licensee. The supplier of last resort is entitled to recover costs and the Authority may seek recovery from the original failing licensee (section 61). This creates a contingent liability for operators who surrender or have their licences cancelled mid-supply.

30-day objection window for works. The minimum notice period for both major and general works proposals is 28 or 21 days (sections 142 and 151). Affected landowners or local governments who do not respond within that window lose the opportunity to lodge formal objections, though the licensee must still have regard to any that are lodged (section 152(3)).

Example 1: New entrant seeking a licence. A private company proposes to provide a recycled water scheme in a new industrial estate. Under section 5, it cannot provide the service without a licence. It applies to the Authority under section 10, provides all required information (section 45), and the Authority considers public interest factors including safety, viability, and customer protections (section 46). Once granted, the licence specifies the operating area, service types, and conditions including membership of the ombudsman scheme.

Example 2: Major pipeline works. A regional water corporation needs to build a new 50-kilometre water main. This is major works under section 132. The corporation must publish newspaper notice and serve written notice on all affected landowners and local governments, allowing at least 28 days for objections (section 142). It collects and reports on objections, then submits the proposal to the Minister (section 144). The Minister considers the report and authorises the works (section 145).

Example 3: Customer complaint about service quality. A customer receives what they believe is an incorrect bill. They complain to the licensee, which does not resolve the matter. Under Part 4, the customer may refer the dispute to the water services ombudsman (section 68). The ombudsman investigates. If the licensee is not satisfied with the outcome, it may apply to the State Administrative Tribunal for review of certain decisions.

Example 4: Licence cancellation for serious default. An irrigation scheme operator persistently fails to comply with its licence conditions relating to water quality. The Authority serves a rectification notice under section 31. The operator makes submissions but does not rectify. The Authority then commences cancellation proceedings under section 34. The operator may apply to the SAT for review of the cancellation decision but does not receive an automatic stay if a dangerous situation exists (section 44(3)(b)).