Ambition is clear. Capability will determine delivery.

Ozwater’26 brought the sector together around a powerful theme: Our Water. Our Tomorrow. 

Across the conference, the conversations were technical, ambitious and future-focused. There was strong momentum around infrastructure investment, climate resilience, circular economy, digital operations, water security and long-term sustainability. 

But one theme sat beneath many of the discussions: the sector’s ability to deliver on its ambitions will depend on people. 

Not just technical capability. Leadership capability. Digital capability. Workforce capability. Governance capability. 

This closely reflects the findings of Davidson's Water Gauge 2026, which identified five strategic forces shaping the sector: financial sustainability and pricing reform, leadership and workforce capability, digital and data transformation, climate resilience and adaptive capacity, and affordability and community expectations.

Financial pressure is not a reason to pause investment 

One of the clearest themes from Ozwater was the need for continued investment in asset and network upgrades. 

Across Queensland and nationally, water organisations are progressing major infrastructure programs to support population growth, improve resilience and prepare for future demand. At the same time, there remains strong pressure to manage pricing and demonstrate value for customers. 

This tension is not new, but it is becoming more acute. 

The Water Gauge 2026 found that 85% of sector leaders identify funding and pricing pressures as the greatest risk to delivering strategy. The challenge is that financial pressure does not reduce the need for investment. In many cases, delaying infrastructure upgrades only increases the long-term cost, complexity and risk. 

For boards and executive teams, the task is to balance affordability today with resilience tomorrow. That requires long-term thinking, clear communication with customers and regulators, and governance structures that support decisions beyond short-term funding cycles. 

As the report highlights, the sector is managing a capital pipeline of more than $25 billion between 2023 and 2030. Delivery at that scale requires more than engineering expertise. It requires organisational alignment, workforce capacity and leadership capable of navigating competing expectations. 

Digital adoption is becoming more practical

AI and technology were prominent across Ozwater, particularly where they support operational performance. 

The strongest examples were practical: using real-time data, sensors and AI-driven insights to shift from reactive maintenance to predictive operations. For water organisations, this means identifying potential failures earlier, improving visibility across networks and reducing downtime, maintenance costs and service disruptions. 

But scaling this opportunity depends on more than the technology itself.  Water organisations need modern data models, strong data governance and better integration between physical assets in the field and back-office systems. In other words, the digital opportunity depends on organisational readiness. 

This aligns with the Water Gauge 2026 finding that 60% of utilities are advancing digital initiatives, with AI adoption rising as a priority. 

Yet the report also shows that 50% of leaders acknowledge gaps in digital and technology literacy at board and executive level. 

That gap is not stopping progress, but it should shape how progress is governed. 

Digital transformation in water is no longer only a technology issue. It is a leadership and governance issue. Boards and executives need enough digital literacy to ask the right questions, manage risk, make informed investment decisions and ensure digital capability translates into measurable performance.

Sustainability and circular economy are moving from aspiration to action 

Ozwater also reinforced the growing importance of sustainability and circular economy thinking across the sector. 

Water organisations are looking beyond compliance and exploring how assets, waste streams, energy use and resource recovery can support broader environmental and community outcomes. This includes opportunities in water recycling, biosolids, renewable energy, biochar and industrial reuse. 

The Water Gauge 2026 found that climate resilience and adaptive capacity was the most common ESG priority cited by respondents, while affordability and equitable access also ranked highly. 

This creates a difficult but important leadership challenge. The sector must invest in resilience and sustainability while maintaining affordability and trust. 

The opportunity is significant. Forward-looking organisations are already considering how sustainability initiatives can reduce costs, support ESG goals and create value beyond traditional service delivery. 

Davidson has seen this through advisory and search work across the sector, including support for organisations strengthening capability in sustainability, resource recovery, cultural and community impact, and long-term infrastructure planning. 

Talent must be elevated as a strategic priority

While Ozwater covered a strong breadth of technical and strategic topics, one practical question deserves more attention: 

Who will deliver this transformation? 

The sector’s ambitions are substantial. Infrastructure programs are growing. Digital transformation is accelerating. Sustainability expectations are rising. Communities expect real-time communication, affordability and resilience. 

Yet the Water Gauge 2026 found that 64% of leaders cite leadership capability gaps as their most urgent workforce issue. 

This is one of the most important messages for the sector. 

The water industry has traditionally valued deep sector experience, and for good reason. But as the challenges become more complex, the sector will need to draw capability from broader markets, including energy, resources, infrastructure, technology, finance and other customer-intensive sectors. 

We are already seeing movement in this direction. 

More executive and director-level appointments are bringing commercial, digital, financial and transformation experience into the sector. This broadening of capability can help water organisations strengthen leadership diversity, improve decision-making and respond to increasingly complex operating environments. 

Regional and remote utilities face a particular challenge. Attracting talent to locations outside major metropolitan centres remains difficult, even as the need for strong leadership, operational capability and digital maturity continues to grow. 

The answer is not simply to fill vacancies faster. It is to think differently about role design, attraction, assessment, onboarding and long-term workforce planning. 

Hiring practices must evolve with the sector 

As the water sector modernises infrastructure, operations and technology, recruitment and assessment practices must also evolve. 

Some organisations remain heavily process-driven in how they hire, particularly for technical, operational and safety-critical roles. While consistency is important, outdated processes can limit the ability to assess leadership potential, safety mindset, adaptability and cultural contribution. 

This is especially important in a sector where more workers are being exposed to operational risk through ageing assets, construction-heavy environments and major renewal programs. 

The Water Gauge 2026 notes that safety increasingly depends on capability, including clear roles, supervision and process consistency, as much as engineering controls. 

For employers, this means recruitment must go beyond technical fit. Assessment should test judgement, resilience, leadership behaviour, communication and risk awareness. 

This is where stronger workforce planning, robust assessment methods and broader market mapping can make a measurable difference.

The sector is ready for the next conversation 

Ozwater’26 showed a sector actively engaging with the future. 

There is strong momentum behind infrastructure, technology, sustainability and resilience. The challenge now is ensuring water organisations have the leadership, workforce and digital capability to deliver. 

The Water Gauge 2026 reinforces a clear message: 

Infrastructure transformation depends on workforce transformation. 

As the sector enters its next phase of reform and delivery, the organisations that adapt early will be best placed to build trust, manage cost pressures, deliver capital programs and create sustainable outcomes for the communities they serve. 

Davidson partners with water organisations to strengthen leadership, workforce and digital capability. We help clients align strategy, structure, people and technology so they can enhance workplace performance and deliver with confidence. 

Download the Water Gauge 2026 to explore the insights shaping Australia’s water sector.