The Commission was initially established to play a regulatory role in the Territory’s electricity supply industry market. On 1 January 2001, the Commission was also assigned a regulatory role in the water and sewerage industries with the passage of the Water Supply and Sewerage Services.

That Act and its associated regulations require and allow the Commission to undertake certain regulatory functions in the Territory’s water supply and sewerage services industries for the provision of those services within a sole provider model. Under the Act, the supply of water and sewerage services are to be licensed, with licences issued by the Commission being for defined (and gazetted) geographical areas.

Power and Water Corporation is licensed for the provision of water and sewerage supply services in declared licensed areas of the Northern Territory.

The Commission’s activities in the water and sewerage industries relate mainly to licensing, although the Minister may assign some price and service standard monitoring functions to the Commission under his regulation powers.

Water and sewerage regulation is divided into five categories: