Water Gauge 2026
Leadership, Workforce and Digital Capability will define the
next decade of water
Australia’s Water Sector stands at a defining moment.
Record capital investment, housing growth targets, ageing infrastructure and climate volatility are colliding within a tightly regulated pricing environment. The expectations placed on boards and executive teams have never been higher.
The Davidson Water Gauge 2026 draws on direct insights from CEOs and board members across some of the nation’s largest water organisations. The findings point to a sector under pressure, yet rich with opportunity for those prepared to act early.
1. Financial Pressure Is The Dominant Risk
of leaders identify funding and pricing pressures as their greatest strategic risk. Utilities must finance enabling infrastructure for housing growth, renew ageing networks and strengthen climate resilience while maintaining affordability.
Boards are balancing long term asset lifecycles against short term political horizons.
Governance capability is now central to financial sustainability.
2. Leadership and workforce gaps are widening
of respondents cite leadership capability gaps as their most urgent workforce issue. Engineers, digital specialists and capital delivery leaders are in high demand across national mega projects.
Water organisations can no longer rely solely on traditional talent pools. Future ready leadership will require experience in large scale infrastructure delivery, digital transformation and customer centric operating models.
Being a water sector CEO in 2026 means being a communicator, a change leader and a custodian of community trust.
3. Digital maturity has become a board issue
Half of surveyed leaders acknowledge gaps in digital and technology literacy at board and executive level. Meanwhile, more than half of utilities are progressing digital initiatives and AI adoption.
Predictive analytics, real time data and automation are shifting operating models from reactive repair to preventative performance. Those who embed digital capability at the top will convert technology investment into resilience and capital efficiency.
Digital capability is no longer a technical discussion. It is a governance imperative.
4. Climate resilience and affordability are converging
Climate adaptation, environmental stewardship and affordability are no longer separate agendas. Nearly half of leaders identify equitable access and affordability as a strategic priority.
Utilities must clearly articulate how capital investment strengthens reliability, resilience and long-term water security. Social licence will depend on transparency, engagement and leadership credibility.
A decade defined by leadership capability
The sector's challenges are complex, but they are navigable.
Organisations that:
Invest
in leadership development
Broaden
talent pipelines
Strengthen
governance structures
Accelerate
digital capability
will be best placed to deliver on record capital programs and maintain community confidence.
Water Gauge 2026 offers a practical lens through which boards and executive teams can assess readiness, identify capability gaps and shape a clear path forward.
Download the Davidson Water Gauge 2026
Access the full report to explore detailed insights, survey findings and strategic implications for Australia’s water sector.
Enhance workplace performance | Strengthen leadership capability | Deliver the next decade with confidence
