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Purpose

The purpose of this paper is to explain three phases of modernisation change in the Sydney water sector from the early 1980s to 2007 and comments on how those phases of change are likely to be impacting the nascent development of water management processes in Sydney‐based water consuming organisations.

Design/methodology/approach

A framework of modernisation reform in the Sydney water sector has been determined through literature review.

Findings

This paper demonstrates that only moderate modernisation reform occurred in the Sydney water sector in the period from the early 1980s to 2007 tempered by water scarcity and a thrust to sustainability. As a result of these reforms, it is argued that water management processes in water consuming organisations are likely to have accelerated into the early 2000s.

Research limitations/implications

This paper calls for empirical research to understand why organisations in the Sydney region have recently developed water management practices.

Practical implications

This paper contributes to an understanding of the impact of modernisation reform in the Sydney water sector from the early 1980s to 2007 and provides insight into the factors driving water management practices in water consuming organisations.

Originality/value

This paper provides public sector and environmental management researchers with an examination of modernisation reform in the Sydney water sector and relates this to the development of water management objectives in water consuming organisations.

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