SYDNEY WATER has abandoned a decade-long push for Sydneysiders to cut their usage because pursuing more efficiencies would drive up bills.

Critics say the move is short-sighted and is designed to preserve corporate profits, maximise state government dividends and make the Kurnell desalination plant appear viable.

Illustration: Cathy Wilcox

After years of successfully promoting a culture of water efficiency - the former premier Morris Iemma described water as "liquid gold" in 2007 - the utility has now dumped programs for schools, businesses and households and has abandoned large-scale recycling schemes.

The utility's latest water efficiency report says consumption in Sydney is at historic lows, and "after more than a decade of sustained effort, the biggest gains in water savings are already made".