The Silent Shift Powering Australia’s Water Future

Data from smart meters is reshaping how utilities detect leaks, plan resources, and engage customers

30 Jan 2026

Australia’s water utilities are using smart meters to change how they manage supply, engage customers and plan for long-term constraints, as detailed household data begins to influence operational and regulatory decisions.

A milestone in this shift came with the H2OME Residential Water Use Study in Western Australia, led by the state-owned Water Corporation. Drawing on smart meters installed across thousands of homes in the Perth–Peel region, the pilot offered a clearer picture of how water is used inside and outside the home.

The data showed outdoor irrigation as the largest source of residential demand, followed by showers. It also revealed a widespread but often hidden problem: about 30 per cent of households showed signs of continuous leakage on the customer side of the meter, losses that typically go unnoticed but add up at system level.

For utilities, such insights mark a departure from reliance on infrequent meter reads and broad averages. Granular, near real-time data allows water providers to identify specific drivers of demand and loss. Water Corporation has used the findings to refine customer programmes, placing greater emphasis on leak detection and irrigation efficiency alongside general conservation messages.

The approach is attracting interest elsewhere. In Victoria, South East Water is expanding smart metering through staged rollouts, building on earlier trials. The utility is testing operational impacts, customer responses and regulatory outcomes before committing to wider deployment, reflecting a cautious but growing industry shift towards data-led decision-making.

This comes as utilities face tighter supply constraints, rising costs and closer regulatory scrutiny. Detailed consumption data is increasingly seen as a way to manage demand, defer expensive infrastructure investment and demonstrate value for money.

Economic analysis has supported the case. Frontier Economics has argued that granular usage data can strengthen business cases for digital investment, particularly where benefits to customers and networks can be clearly identified and quantified.

Obstacles remain. Handling large volumes of customer data raises privacy and cybersecurity risks, while the benefits of smart meters often depend on sustained customer engagement. Regulatory approval can also be complex, especially when gains emerge gradually rather than immediately.

Even so, uptake is accelerating. By turning routine water use into actionable information, smart meters are quietly reshaping how Australia’s water sector operates, pointing towards a more efficient and resilient system.