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HAWKESBURY City Council is facing growing community backlash over its plan to transfer ownership of the region's $170 million sewerage system to Sydney Water — for zero compensation.
But Hawkesbury Council says residents will be better off financially.
The proposed deal, set to be finalised later this year, would see Council hand over the community-built infrastructure asset to the State-owned utility while retaining a $32 million debt caused by a prolonged failure to repair a broken pipe back in 2022.
The move amounts to giving away a profitable public utility that has long served Hawkesbury households at a lower cost than Sydney Water charges elsewhere in the city.
“It's outrageous," says North Richmond resident Helen, who didn't wish to give her surname.
“We built it, we paid for it, and now we're being asked to give it away and pay more for the privilege. It’s like selling your house for nothing and agreeing to keep the mortgage.”
At a Hawkesbury Council meeting on 10 June Councillors decided to give the sewage treatment works to Sydney Water for free.
In a letter to the 8500 residents to which Council provides waste management services, Council suggests Hawkesbury customers will benefit from the transfer of the asset to Sydney Water saying it will potentially bring “substantial savings” without clearly stating the value of the $170 million asset and the $32 million debt created by Council’s delay in repairing a sewer pipe remains.
“This is manipulative and obscures the real issue: the sewer system was mismanaged by Council,” says Windsor businessman Troy Myers who was among ratepayers who received the letter.
“Nowhere in the letter is there an acknowledgement of the $15 million annual revenue the sewer system used to generate for Hawkesbury ratepayers,” said Mr Myers.
He added that there is no mention of Council’s decision to give away the system for free, nor of the total asset value ($170 million) being forfeited. Or that the asset’s value was $231 million in 2023 and has been written down by $60 million.
“The omissions border on deliberate deception. Residents are not being given the full picture, nor the real long-term cost of losing a local public utility.”
Business groups have written to NSW Premier Chris Minns, asking him to appoint an Administrator to Hawkesbury Council, citing mismanagement, poor financial oversight, and lack of transparency.
A “Help Hawkesbury out of the Poo Petition” is circulating in the community seeking the same outcome.
“We're not just flushing infrastructure down the drain,” said Fiona Germaine of BLOR Business Council. “We’re flushing away our ability to control our future.”
The Gazette has reached out to Sydney Water and Hawkesbury City Council for comment.
What Went Wrong: A Sewer Crisis Explained
- Decades of Independence
Unlike most councils in Greater Sydney, Hawkesbury has operated its own sewer system since the 1930s, delivering cheaper sewage services and generating around $15 million per year in revenue. - The 2021 Pipe Break
A cracked sewer pipe near Windsor in 2021 caused raw sewage to leak. Rather than fixing the break quickly, Council relied on sewage trucks to transport waste to the treatment plant — a short-term fix that dragged on for nearly two years. - Mounting Costs
During this delay, the Council incurred a cost of about $40 million, fees from sewage cartage costs, a failed legal case, the cartage costs and fixing the cracked pipe, roughly half of its annual rates income. Council’s request for State disaster funding was rejected, and the debt is now being repaid via higher sewage charges — which have risen over 30% causing Hawkesbury sewerage costs to rise above that paid in metropolitan Sydney. - The Sell-Off
Council is now proposing to transfer the entire sewer system to Sydney Water for $0. The decision, officials say, is about “avoiding future risk.” - Who is directly impacted
Hawkesbury City Council currently provides wastewater services to approximately 8500 households and 1000 businesses.
What It Means for Residents
If the deal proceeds:
- Hawkesbury loses ownership of a $170m critical community service asset.
- Sewage prices will be set by Sydney Water.
- Council loses a major revenue stream.
- Residents have decreased influence over how the system is managed.
- Innovation and local responsiveness could decline, as decisions shift to a centralised utility.
- No control over pump out costs.
- A $30M debt and $1.9M PA internet payments.
Editor’s Note:
The Gazette will continue to follow this story closely. If you’d like to have your say, email your letters to Editor@Hawkesburygazette.com and/or speak to the Councillors and your MPs about this matter.
