Water continues to be a hot media topic with progress on agreements for flows in the Murray Darling, significant rainfall in northern Australia but continued low rainfall in southern Australia, debates about water restrictions and the flow through of price increases to reflect the recent round of capital expenditure. There were two recent reports that provided different perspectives on the approach to water pricing and the structure of the water industry: 1. The Productivity Commission in a Research Paper Towards Urban Water Reform, promoted the need for competition, suggested that water restrictions actually cost households approximately $ 150 per year, promoted rural-urban water trading and advocated scarcity pricing for water 2. IPART's Draft Report on Sydney Water's pricing from July 2008, rejected scarcity pricing for water, moved back to a single tariff and away from the inclining block tariff introduced in 2005. IPART adopted an increase in service and usage charges that will add $200-250 to most household bills, the increase reflected the costs of recent works including desalination and the replacement flows project.
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