When managing a property purchase in New South Wales, conveyancers and property lawyers know that comprehensive due diligence extends well beyond standard title searches and zoning checks. A substantial number of water certificates are issued across the state, ensuring financial and structural integrity for the buyer. These certificates are issued by key authorities including:

Sydney Water: Greater Sydney and the Illawarra

Hunter Water: Newcastle, Lake Macquarie, Maitland, Cessnock, and Port Stephens
NSW Local Councils: Includes Greater Sydney, Hunter, Central West, Illawarra Shoalhaven, and Northern Rivers councils
Water NSW: Regional or rural areas involving Water Access Licences (WALs)

In this article, we’ll highlight seven water-related certificates to include in your NSW conveyancing checklist to safeguard your client’s investment, maintain compliance, and proactively manage potential liabilities on the land.

1. Outstanding Rates: Section 66 / Section 47 Certificates

Issued by Sydney Water or Hunter Water, this certificate is fundamental to achieving financial clarity. It ensures no unpaid water or sewer debts are inherited by the purchaser, facilitating accurate settlement adjustments. This is also mandatory for settlement in their respective areas, so ordering it early ensures results are available for settlement calculations.

2. Section 88G Certificate: Confirm authority consent for dealings

Issued by Sydney Water, this certificate provides registration assurance. It confirms the authority’s consent to a dealing (e.g. a transfer or mortgage) when a title is burdened by a positive covenant benefiting Sydney Water or a prescribed authority. This is essential for avoiding registration requisitions at the NSW Land Registry Services.

3. Service Location Prints / Plans and Sewer connection plans

Provided by Sydney Water, Hunter Water, or Central Coast Council, these plans offer critical information on feasibility and constraints. They show the precise location of public water and sewerage pipes and structures, and the property’s connection points. This is vital for identifying easements and constraints for any planned development or major renovation. Specifically, these plans are the primary way to determine if an unregistered sewer or water main crosses the land, which could lead to unforeseen restrictions on building that may not be evident from a standard title search.

4. Sewer Service Diagram (SSD) / House Drainage Diagram (HDD)

The SSD (Sydney Water) and HDD (Hunter Water) confirm the property’s compliance and infrastructure by showing how the internal private plumbing connects to the public sewer. These diagrams are critical for compliance under the Conveyancing (Sale of Land) Regulation 2022 and are essential resources for builders and plumbers.

5. Special Water Meter Readings (SWMR)

Available from Sydney Water, Hunter Water, and Central Coast Council, an SWMR provides a precise water usage reading, typically ordered close to settlement. This tool ensures billing accuracy, preventing potentially complex and contentious post-settlement billing disputes between the vendor and purchaser.

6. Building Over or Near Sewer (BOS/BAS) Approval Letter

Issued by Sydney Water, this letter is key for risk mitigation. It confirms if existing structures were approved to be built over or adjacent to public water assets. Unapproved work over mains may expose the client to costly future rectification or demolition. For best use, always order this when purchasing a property with planned renovations or extensions, or where outbuildings or pools are clearly visible.

7. Water Access Licence (WAL): Interest search & financial statement

For rural and irrigation properties, this involves certificates and statements administered by WaterNSW. This process confirms the asset confirmation (rural) for a Water Access Licence, which is a separate asset from the land. The required due diligence is twofold:

A Water Licence Interest Search verifies the licence’s existence, conditions, and transferability (including details like shares and extraction limits). It is also critical for identifying any registered mortgages or encumbrances over the licence.
A State Water Financial Statement identifies any outstanding charges or debts owed to WaterNSW, ensuring account status is clear and preventing the purchaser from inheriting arrears.

By combining both, you verify the asset, its legal status, and its financial standing, which is essential for correct contract drafting and settlement adjustments.

Protecting clients and preventing settlement issues

By expanding your due diligence checklist to routinely include these valuable water certificates, you are not just ticking boxes, you are proactively identifying potential financial, structural, and legal risks that a standard set of searches might miss. As a result, your client’s most significant investment will be correctly managed and ensured a smoother path to settlement.

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