Water Gauge 2026
The next decade of water will demand different leadership.
Australia's water sector is entering one of its most consequential periods in a generation. The Water Gauge 2026 captures the perspectives of CEOs and board members from some of Australia's largest water organisations, revealing the pressures shaping the sector and the capabilities leaders believe will matter most.
Why this report matters
For boards & CEOS
Benchmark the pressures shaping long-term decisions, from financial sustainability and pricing to climate resilience and community expectations.
For executive leaders
Understand where leadership capability is under pressure and where new experience will be needed to deliver major capital and transformation programs.
For people, digital & transformation leaders
See where the sector is building capability, where digital readiness is lagging and what this means for workforce strategy and recruitment.
What the research says
The Water Gauge identifies a sector facing financial pressure, capability gaps and accelerating expectations around digital and climate resilience.
86%
cite financial pressures as their greatest strategic risk.
64%
identify leadership development and capability gaps as the most urgent workforce issue.
50%
say their boards lack digital and technology literacy.
57%
rank climate resilience and adaptive capacity among their top ESG or community impact priorities.
Five forces shaping Australia’s water sector
The research points to five connected forces shaping how the sector will lead, invest and operate.
01
Financial sustainability and pricing reform
Funding pressure is the sector's dominant strategic risk. Boards are balancing major infrastructure investment, regulated pricing and long-term financial sustainability.
02
Leadership and workforce capability
Capability gaps are the most urgent workforce issue. Demand is rising for leaders and specialists with large-scale capital, digital and transformation experience.
03
Digital and data transformation
Digital capability is becoming a governance issue, not only a technology issue. The sector is moving towards predictive operations, real-time data and AI-enabled decision-making.
04
Climate resilience and adaptive capacity
Climate volatility is increasing operational pressure. Utilities must strengthen resilience while balancing investment, regulation and service continuity.
05
Affordability and community expectations
Customers expect transparency, fairness and reliable service. Utilities must explain the link between rising investment, bills, resilience and long-term water security.
What you’ll find inside
Housing demand and
long-term planning
How population growth and housing targets collide with long asset life cycles, regulated pricing and funding constraints.
The talent challenge
Why water organisations are competing beyond the traditional talent pool, and which roles are proving hardest to recruit.
Operational resilience
How ageing infrastructure, workforce pressure and cautious innovation are changing the resilience agenda.
AI, automation and digital readiness
Where utilities are prepared, where the gaps remain and why digital capability increasingly belongs on the governance agenda.
Climate, affordability and community trust
How climate resilience, customer expectations and affordability are converging as leadership issues.
The outlook for 2026
What the research says about the next phase of capital investment, capability development and sector leadership.
About the Water Gauge
Davidson gauged the sentiment of water sector leaders, including CEOs and board members from some of Australia's largest water organisations. The detailed survey was combined with Davidson's sector experience to inform the ideas, insights and recommendations in the report.
The research combines survey findings, executive insight and Davidson's experience across the utilities and local government sectors.
Read the Water Gauge 2026
Explore what water sector leaders see ahead, and the capabilities organisations will need to respond.
Davidson connection
Building capability for what's next
Davidson works with organisations across the water sector to strengthen leadership, workforce and organisational capability. Our teams bring together expertise across strategy, people and technology to help clients address connected challenges and deliver practical progress.
