NSW Opposition Leader Peter Debnam and Shadow Minister for Finance Peta Seaton today announced the NSW Liberal/Nationals will turn the water crisis into an important economic growth opportunity for NSW.

"Morris Iemma and Labor's 12 years of inaction on securing Sydney's water supply has led to our current crisis, but I will use this as an economic opportunity to drive our stalled economy," Mr Debnam said.

"By investing in the world's best technology and developing new skills and capability, I will create new export capability and restore industry confidence to invest in a city with secure water supplies," he said.

"To boost innovation, research and technology capability the NSW Liberal/Nationals will:

• Create a Centre of Water Technology Excellence (CWTE) at a major NSW university including a chair and research projects to kickstart and trial innovative water projects, including joint ventures with the water industry;

• Establish an interactive Water Factory at Homebush in Sydney's West, based on the successful Water Visitor Centre in Singapore, which attracts hundreds of thousands of visitors each year, with a focus on schoolchildren;

• Create a dedicated research facility at the Water Factory, including two annual $50,000 scholarships for innovative urban and rural water research projects.

"The primary role of the Water Factory will be to provide community information and education on water issues, including management, conservation, and recycling options. The Centre will also address rural water issues including salinity and supply," Mr Debnam said.

Ms Seaton said the Water Factory will include a fully operational small-scale demonstration water recycling plant. 

"This will give the public direct access to the various water processes available, such as reverse osmosis," said Ms Seaton, who has toured the Singapore Water Visitor Centre.

"The Water Factory will be open to the public and will include a Schools Seminar Room to cater for visiting school groups, and demonstration and interactive displays that inform people about all aspects of water management and quality.

"In addition, the Centre will pursue an ambitious regional outreach programme to take the activities of the centre to regional NSW, targeting high schools.

"The Water Factory will include a dedicated research facility linked with the CWTE.  It will also be encouraged to establish links with existing research and demonstration centres already in operation around Sydney.

"As part of the CWTE Centre’s research programme, two $50,000 per year scholarships will be provided for innovative water research projects. One scholarship will be provided for urban water research and the other for regional water research," Ms Seaton said.

The $6.7 million package will be funded out of the NSW Liberal/Nationals 'New Water' Network policy.

Mr Debnam said the NSW Liberal/Nationals are determined to ensure NSW never faces a water crisis as bad as the one currently gripping our state.

"That's why I want to attract the best scientists and experts to NSW," he said.

"Labor's inaction over 12 years on water has taught us a lesson we will never forget – this is the situation you find yourselves in if you don't.

"The Navy taught me that you plan for all contingencies - and Labor's Morris Iemma has failed to do that. I won't be caught short.

"My plan to secure Sydney's water supply begins on day one with a plan to recycle double the water of Labor's desalination plant at half the cost," Mr Debnam said.