Australia’s Smart Water M&A Shifts Who Holds the Valves

Recent water sector deals show Australia’s focus moving from clever tech to who owns, runs, and secures critical water assets

20 Jan 2026

Australia’s smart water sector is seeing renewed merger and acquisition activity, with recent deals signalling a shift towards control of infrastructure, delivery capability and long-term water security.

One of the most significant transactions saw Utilities Trust of Australia acquire Ontario Teachers’ remaining 60 per cent stake in the Sydney Desalination Plant, giving it full ownership of one of Greater Sydney’s largest rainfall-independent water assets. The plant has capacity to supply up to 250mn litres of drinking water a day and is used to support dam supplies during droughts and periods of peak demand.

Morrison, which manages Utilities Trust of Australia, completed the purchase through pre-emptive rights attached to the asset. Ontario Teachers has previously highlighted the plant’s use of renewable power, positioning it as part of a more energy-efficient approach to water supply as climate variability increases. Infrastructure analysts say that single ownership could simplify decisions on maintenance, upgrades and long-term operating strategy.

Consolidation is also under way in operational service delivery, particularly in water loss management. Aqua Analytics has expanded into Western Australia through the acquisition of Engineered Efficiency’s water loss field operations. The deal allows Aqua Analytics to combine data analysis with on-the-ground leak detection and repair, an area of growing focus for utilities seeking measurable reductions in non-revenue water.

Industry observers say utilities are increasingly looking for providers that can move from diagnosis to execution, as ageing pipe networks place pressure on supply efficiency and operating budgets.

International water companies are also reshaping their positions in the Australian market. Almar Water Solutions has completed the acquisition of full ownership of its Australian subsidiary, underlining the country’s importance for desalination, water reuse and advanced treatment projects.

While consolidation can raise concerns about market concentration, sector participants say the recent transactions are better understood through the lens of asset stewardship, reliability and investment certainty. Together, the deals suggest Australia’s water sector is entering a phase in which ownership structure and operational capability are becoming as important as technology in delivering secure and resilient water supplies.