Sydney is facing a water crisis as its population is projected to increase significantly by 2031. Current water demand already exceeds supply and if consumption is not reduced, Sydney is estimated to run out of drinking water by 2038. Several initiatives are proposed to reduce demand by 40% by 2038, including a 50% increase in water prices, targets for households to collect rainwater, and a water trading scheme. Calculations show these initiatives could decrease drinking water demand by 32.5% and avoid the predicted crisis.