NSW Opposition Leader Peter Debnam said today the Iemma-Costa Labor Government must move beyond its paralysis and declare a state of emergency on water following dam level data showing Sydney's water supply at new lows. 

"The water crisis has reached the point where Morris Iemma must finally acknowledge there's a problem and declare a state of emergency to cut through the bureaucratic red tape," Mr Debnam said.

"Morris Iemma has failed to deliver NSW a secure water supply over 12 years and now he wants 16 years," he said.

"Labor now wants to slug families and small businesses for its water failure though higher prices. We are all going to pay for Morris Iemma's failure to secure Sydney's water supply."Environment Minister Bob Debus told Nine News: "In the longer term of course it may be expected that prices will rise."

"Morris Iemma has demonstrated he can't deliver on infrastructure – be it water or roads yet he now wants the people of NSW to trust him again," he said.

"The Iemma-Costa Labor Government needs to urgently adopt the NSW Liberal/Nationals water plan to drought-proof NSW."

The plan includes:

• Declare a State of Emergency to cut through bureaucratic red tape;Harvest billions of litres of water of stormwater that flow out of sea after every rainfall;

• Recycle ocean outfalls including one in our first term and recycle this water for non-drinking purposes;

• Boost rainwater tank installation by doubling the rainwater tank rebate;

• Repair ageing infrastructure and clear the backlog of over 200 projects needed to fix country and coastal towns' water and sewerage schemes;

• Enhanced dam capacities; and,

• Encourage large scale recycling by ending Sydney Water's monopoly.

"After 12 years of Labor's excuses, it's time to fix NSW and change the government," Mr Debnam said.