Water thieves are officially on notice in New South Wales, with the State Government passing the toughest enforcement powers in NSW history.

The suite of new laws could see corporations fined up to $10 million and individuals almost $5 million for illegally taking the state’s water.

The sweeping reforms, passed by NSW Parliament on November 14, give the Natural Resources Access Regulator (NRAR) unprecedented authority to pursue water law breaches through a strengthened civil penalty regime, significantly toughening the consequences for those who knowingly steal water.

The Minns Government says the rules are designed to protect communities, farmers and the environment, not the small number of corporations and individuals who have treated water theft as a cost of doing business.

Minister for Water Rose Jackson said the message is now unmistakable.

“Labor is sending a clear message: if you steal water in NSW, you will be held to account,” she said.

“A nearly $10 million civil penalty will act as a strong deterrent and send a powerful message to would-be wrongdoers, particularly corporations, that water theft will not be tolerated in New South Wales.”

The new laws also deliver long-called-for reforms welcomed by the Nature Conservation Council NSW (NCC), which described the legislation as a “historic step” to protect the state’s rivers, wetlands and communities.

NCC CEO Jacqui Mumford said the reforms go straight to the heart of where water theft is most concentrated.

“This bill is laser-focused on where water theft is happening - the big end of town.”

“There are 39,000 water licence holders in NSW, but just 400 of them take 65 per cent of the water.

"These are big players who need real deterrents.”

The changes follow years of concern that existing fines were too small to meaningfully punish or prevent theft.

A 2020 NRAR case revealed an agribusiness had taken massive volumes of water without approval but faced a penalty of only $102,693.50 which equated to a fraction of the potential gains.

Under the new regime, that same offence would attract a penalty closer to $10 million.

What the new laws do

The Water Management Legislation Amendment (Stronger Enforcement and Penalties) Bill 2025 introduces a wide range of powers and new offences, including:

New offences

• • Providing false or misleading information to the NSW Government or an NRAR authorised officer.

• • Hindering, intimidating or obstructing an authorised person completing unfinished works directed to a landholder.

• • Receiving a financial benefit from an offence committed by a related corporation.

• • Removing, altering or interfering with items seized by NRAR in connection with a contravention.

NRAR Chief Regulatory Officer Grant Barnes praised the new powers his organisation has to safeguard water use.

Expanded regulatory powers

• • A new charge for taking water without an approval or outside the terms of one.

• • Stronger powers to obtain monetary benefits orders to recover unlawful profits.

• • Authorisation for NRAR officers to use drones when exercising powers of entry.

• • Broader grounds to suspend or cancel licences and approvals.

• • Courts empowered to prevent a convicted person from holding a licence or approval.

• • NRAR allowed to recover compliance-related costs directly from individuals who breach directions.

These reforms ensure, according to the NSW Government, that “fairness” is upheld for the vast majority of lawful water users and that loopholes previously exploited by a minority are finally closed.

“A firm but fair regulator”

NRAR Chief Regulatory Officer Grant Barnes said the bolstered powers will help the regulator act decisively.

“NRAR is a firm but fair regulator.

"Our investigations are thorough and tailored to the circumstances of each case.

“Water users and communities expect a regulator that is effective and equipped to act.

"Our ability to safeguard water use and protect the environment… has just been strengthened.”

He said the days of penalties being a “minor inconvenience” for major water users are over.

Environmental groups, regulators and the NSW Government agree on one point: the strengthened laws will help rebuild trust in a system long criticised for being too weak.

Ms Mumford said strong enforcement and meaningful penalties would finally ensure water is managed for “the public good - not exploited for private gain.”

NCC has urged the Government to ensure NRAR continues to be properly resourced so the new measures have their intended impact.

With maximum fines jumping from $2 million to almost $10 million, and new offences targeting misleading conduct, interference and unlawful gains, NSW has signalled one of the strongest crackdowns on water theft seen anywhere in Australia.