Property Council NSW Executive Director Katie Stevenson said plans to streamline and fast-track water and wastewater infrastructure reflected consistent advocacy from the industry body.
"When applications for apartment buildings get the stamp of approval from planning, there are often further strings attached where significant excavations need additional sign-off from water authorities and this adds costly further delays to the delivery of new housing.
"Today's announcement effectively declares 2025 as a year of cultural change for the three water authorities involved in the pre-construction approval of new housing - it is the sort of leadership we need to align all aspects of the government's activities towards resolving the housing crisis.
"We appreciate the priorities outlined in the action plan, along with the specific activities and timelines it includes, which have been created through extensive consultation with the industry."
Ms Stevenson said many developers faced hurdles with multiple water approvals even after securing initial planning permission.
"This creates costly bottlenecks and slows the delivery of new homes at this critical time as we face the housing crisis. By streamlining the removal of groundwater processes and introducing risk-based triaging, the government's plan will cut unnecessary red tape that drives up both cost and time.
"Earlier collaboration with water authorities will give builders and investors the certainty they need to proceed, helping projects stay on schedule, with critical infrastructure in place when construction begins.
"This coordinated approach is something we've long called for - it will reduce duplication, shorten waiting times, and encourage greater innovation," she said.
"The plan's emphasis on consultation with industry experts and developers is a significant move to address the practical challenges encountered on the ground."
Ms Stevenson said clearer guidelines and more effective engagement with industry will shore up confidence that water-related obstacles will not unduly stall new housing projects.
"By working together, government and industry can ensure these reforms deliver real outcomes for communities and provide a timely boost to housing stock where it's needed most."