Australia’s water sector is transforming, with profound implications for the health and wellbeing of people and environment. Governments and water sector organisations are adopting policies and agendas to improve urban liveability regarding greening, cooling, improved amenity, equity, affordability, and safety – but achieving these goals in practice is challenging. This paper reflects on how the water sector can continue its transformation to meet the challenges of our growing cities and navigate pathways toward greater community value from water system services. Our insights come from action research with six Australian cities that were guided through envisioning and transition planning processes, utilising the Water Sensitive Cities Index and transition tools developed by the Cooperative Research Centre for Water Sensitive Cities. We found that achieving cities’ future water aspirations will only be possible with substantial changes in governance settings that move away from the cost efficiency focus of the 1990s toward broader water sensitive outcomes. A narrow investment focus on technologies and demonstration projects is unlikely to drive the system changes and momentum needed to support transformation. Institutional innovations that change the water sector’s operating model are needed, with a focus on its city-shaping role and enabler of urban liveability and resilience.
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