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Consulting Report
22 Apr 2026

Unlocking water capacity

How AI & Cloud computing applications can increase water supply and reduce water demand

Oxford Economics Australia partnered with AWS to produce a robust, evidence-led report exploring how AI, cloud computing, connected sensors, and advanced analytics can help increase available water capacity across Australia. The project assessed practical opportunities to reduce water losses, optimise consumption, improve operational decision-making, and support long-term water resilience across utilities, households, agriculture, and mining. Deliverables included sector modelling, market sizing, real-world case studies, adoption pathways, and quantified efficiency opportunities.

Background: Australia Needs Smarter Ways to Meet Growing Water Demand

Australia’s water system is under increasing pressure from population growth, industrial expansion, climate variability, and rising demand from major sectors such as agriculture, utilities, mining, and households. At the same time, large volumes of water are lost through network leakage, inefficient irrigation, outdated monitoring systems, and operational processes that rely on static settings rather than real-time optimisation.

Many organisations understand the need for better water management, but often lack clear evidence on where the biggest opportunities exist and how digital technologies can create measurable outcomes. This created a need for credible, data-backed analysis connecting technology investment with real operational and sustainability value.

The Challenge: Complex Water Systems Require Better Data, Faster Decisions, and Scalable Solutions

Water efficiency challenges vary significantly across sectors. Utilities need earlier leak detection and better pressure management. Farmers need more precise irrigation decisions based on soil, weather, and crop conditions. Households need better visibility over consumption and hidden leaks. Mining operators need improved water recovery and smarter process control.

These systems are dynamic, fragmented, and influenced by many changing variables. Traditional manual oversight or rule-based systems often struggle to adapt quickly enough; cloud infrastructure and AI-enabled solutions have the potential to solve these challenges in a scalable and commercially relevant way.

Solution: Oxford Economics Australia Delivered the Evidence Base for Smarter Water Innovation

Oxford Economics Australia developed a comprehensive customer-facing thought leadership report for AWS showing how advanced digital technologies can unlock water capacity across the economy. The engagement combined economic expertise, sector intelligence, and real-world technology applications to create a practical and credible market narrative.

Key Deliverables Included:
  • National analysis of Australia’s water consumption profile by sector
  • Identification of highest-value water efficiency opportunities
  • Quantified savings potential across utilities, households, agriculture, and mining
  • Review of AI, cloud, sensor, and analytics use cases already delivering outcomes
  • Forward-looking adoption scenarios and market opportunity modelling

The result was a commercially strong asset helping AWS demonstrate how cloud technology can move beyond digital transformation to solve physical infrastructure and sustainability challenges.

Download the full report to know more.

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The experts behind the research
  • Alex Hooper

    Alex Hooper

    Head of Climate & Energy Economics, OE Australia
    Alex Hooper

    Head of Climate & Energy Economics, OE Australia

    Alex is a macroeconomist with over a decade of experience, she currently leads Oxford Economics' climate & energy economics practice.

  • Hayden Toohey

    Hayden Toohey

    Economist, Oxford Economics Australia
    Hayden Toohey

    Economist, Oxford Economics Australia

    Hayden is an Economist in Oxford Economics’ climate & energy economics practice, specialising in energy-sector analysis, regional modelling, and scenario-based forecasting. He graduated with a Bachelor of Economics with First Class Honours from the University of Technology Sydney.

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