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Ongoing drought, changing community attitudes and a re-vamped industry structure are driving metropolitan water agencies in NSW to invest in recycled water schemes for residential customers. As more customers have their essential water needs met through recycling schemes, PIAC is seeking to ensure that customers receive adequate price protection for the service provided. This submission argues for strong price regulation to protect captive customers from price discrimination by monopoly water agencies and ensure the equitable and affordable delivery of essential water services.