The Sydney Catchment Authority (the Catchment Authority) was created by the NSW Government in July 1999, in response to the Sydney Water Inquiry. Its purpose is to manage the water catchment areas and infrastructure within its jurisdiction and to supply bulk water to the Sydney Water Corporation (Sydney Water) and several smaller customers.

In August 1999, the Premier asked the Independent Pricing and Regulatory Tribunal of NSW (the Tribunal) to investigate and make a determination on the maximum prices the Catchment Authority can charge for water supply services for the period 1 October 2000 to 30 June 2005.1 The Tribunal was also asked to consider the role and objectives of the Catchment Authority and the findings and recommendations of the Sydney Water Inquiry when making its determination. The full terms of reference are in Attachment 1.