This report focuses on problems which arose during the transfer of some water regulation and enforcement functions from the Department of Primary Industries Water to a state owned corporation, WaterNSW – a process referred to as the Transformation.

It also examines three case studies that highlight problems in the way compliance with water regulations have been managed over many years.

The investigation found that the Transformation was poorly managed leading to frustration among staff and a severe diminution in enforcement activity. The report also identifies key lessons for the public sector, including the need to better manage restructures; improve communication; and reconciling the values embedded in delivering effective customer service with taking enforcement action.