Smarter Drops: Australia’s Water Tech Wave

AI pilots and strategic deals are driving a new era in Australia’s water management

16 Oct 2025

Australia’s water sector is being transformed not by new dams or pipes, but by data. Artificial intelligence, analytics and cross-industry deals are redefining how utilities detect leaks, prevent failures and serve customers. A once slow-moving industry is becoming quietly digital.

The shift has both global and local drivers. In September 2024 Xylem agreed to sell its international smart metering arm, Sensus, to investment group AURELIUS, with completion due in early 2025. Because Sensus meters are already embedded in Australian networks, the sale could alter competition and innovation across the country’s digital water landscape. Analysts see it as a test of how investors value and sustain smart infrastructure.

Domestic firms are also moving from pilot projects to practical use. Kallipr, a Queensland-based start-up, has developed edge-AI sensors that Barwon Water in Victoria is trialling. Its Spectra system analyses conditions on-site to spot sewer blockages before they escalate, cutting costs and environmental risk. Though still limited in scale, such trials reflect growing confidence that artificial intelligence can make utilities more resilient.

Meanwhile, Aqua Analytics has expanded westward through the acquisition of Engineered Efficiency’s field operations, strengthening its ability to curb "non-revenue water," the industry’s term for losses from leaks. By marrying analytics with on-the-ground expertise, the firm is building a national platform for efficiency.

"Some utilities are experimenting with data-led, customer-focused, performance-driven models," observes a Melbourne-based consultant. "It’s a move toward more transparent, efficient, and sustainable water management."

Obstacles remain. Integrating new systems into aging infrastructure is slow, and financing large-scale upgrades is costly. Yet the momentum is clear. Rising public expectations for reliability and sustainability are nudging utilities toward smarter, more connected operations.

Australia’s digital water revolution is still a work in progress. But the flow of innovation, steady and irreversible, suggests that intelligence, not just infrastructure, will define how the country manages its most precious resource.