Essential Water has unveiled an ambitious $250 million proposal to rebuild critical water and wastewater infrastructure across Broken Hill and surrounding communities, marking the largest investment in the region's utility services in decades.

The proposed rebuild program, detailed in Essential Water's 2026–31 Pricing Proposal released to the Independent Pricing and Regulatory Tribunal (IPART) on October 27, addresses ageing infrastructure that has reached the end of its operational life across Broken Hill, Menindee, Sunset Strip and Silverton.

At the heart of the proposal is the replacement of two wastewater treatment plants that have served Broken Hill for generations.

The Wills Street Wastewater Treatment Plant, approaching its centenary, and the South Wastewater Treatment Plant, now close to end-of-life, can no longer be upgraded to meet modern environmental standards.

Essential Water's Head of Water, Ross Berry, said the business proposes building a new 4.8 megalitre wastewater treatment plant to replace both facilities.

"Designs are being finalised and the project will go out to tender shortly, with construction expected to begin in mid-2026," Mr Berry explained.

The new plant promises greater reliability, reduced odours and improved opportunities for reusing high-quality treated water, benefits that address longstanding community concerns about the ageing facilities.

Beyond the treatment plants, Essential Water plans to accelerate the replacement rate of ageing water and sewage pipes throughout the network, a move aimed at reducing emergency maintenance costs and improving service continuity for the region's approximately 18,000 residents.

"This investment is not just about pipes and plants; it's about investing in the future of Broken Hill for long-term reliability and sustainability, not short-term fixes," Mr Berry said.

However, the scale of investment required comes with a significant cost to consumers.

To fund the upgrades, Essential Water is proposing annual price increases of around 15 per cent for water and wastewater services over five years, before inflation.

The increases reflect the challenging economics of delivering safe and reliable services in a remote region with a small customer base.

Mr Berry acknowledged the financial impact on households.

"Our proposal to IPART outlines what the necessary investment would cost our customer base. It's part of the process we need to go through, but we are advocating on behalf of our customers to see if there will be additional government support to help ease the impact on households," he said.

"We understand that the proposed annual increase is significant, especially in the current economic climate. We welcome IPART acknowledging our concerns that fully recovering the costs through customers could result in financial stress and that additional government support may be needed."

Essential Water has maintained price stability since 2014, with increases only in line with inflation.

However, Mr Berry warned that the cost of maintaining and upgrading the network has reached a tipping point.

"The reality is, without these upgrades, we risk service outages and escalating emergency costs.

There is a real risk of environmental damage to creeks, water pipe bursts causing flooding, and an increase in service outages that disrupt daily life," he said.

The utility has committed to a 0.5 per cent annual productivity improvement alongside existing cost-saving measures, demonstrating efforts to minimise the financial burden on customers whilst delivering essential infrastructure improvements.

The proposal has been developed through extensive community consultation, including surveys, stakeholder meetings and input from the Essential Water Customer Panel.

Feedback revealed that customers prioritise clean drinking water, long-term security, affordability and sustainability—principles that have guided the infrastructure planning.

As part of IPART's review process, a community consultation meeting will be held in Broken Hill on November 24, with tickets available online.

Essential Water is encouraging all customers to participate and provide feedback on the proposal. The outcome of IPART's review will determine the final pricing structure and may influence the level of government support available to offset costs for households in the Far West region.

Essential Water, an operating division of Essential Energy, provides water and sewerage services to around 10,500 customers in Broken Hill, Menindee, Silverton and Sunset Strip, as well as rural customers.

The utility operates an extensive network of dams, water treatment plants, sewage treatment plants, reservoirs, pumping stations and related infrastructure across the region.

Community members can stay informed about the IPART review process through the tribunal's website, with the consultation period providing an opportunity for residents to have their say on the future of water services in Far West NSW.