The demands on governments and local authorities are changing in response to community expectations for environmentally sustainable outcomes. To reverse declining water quality in rivers and ensure sustainable use in the 21st century, the State Government in New South Wales has introduced a package of Water Reforms. The introduction of integrated water, sewerage and drainage planning is one of the Water Reform initiatives. Traditionally, government and local authorities have managed their water supply, sewerage and stormwater drainage systems as separate entities. Integrated urban water planning is a structured planning process to evaluate concurrently the opportunities to improve the management of water, sewerage and drainage services within an urban area in ways which are consistent with broader catchment and river management objectives. The New South Wales Department of Land & Water Conservation (DLWC) has developed an integrated urban water planning process through a number of recent pilot studies. The process links urban water management objectives to overall catchment and river management objectives. DLWC is currently developing a set of guidelines for integrated urban water plans. DLWC has developed the Integrated Urban Water Planning methodology through three pilot studies in the New South Wales towns of Finley, Goulburn and Bombala. The pilot studies have shown that an integrated approach to water, sewerage and stormwater planning can identify opportunities that are not apparent when separate strategies are developed for each service. The result is better-integrated, more sustainable solutions, and substantial cost savings for local communities.