Nightclubs were removing taps from bathrooms to force patrons to buy bottled water at inflated prices, NSW parliament was told today.
Announcing new water provision laws, State Gaming and Racing Minister Richard Face revealed the practice had been happening mainly at dance venues where water was in demand.
In some cases, nightclubs were only providing hot water in bathrooms.
Mr Face warned removing taps from bathrooms posed a health hazard.
The failure to provide cheap water also contravened the government's responsible serving laws, he said.
"It appears that these venues are trying to force patrons who want to quench their thirst to buy alcohol or bottled water at outrageous prices in order to maximise their profit," Mr Face told parliament.
"It has been a source of complaint for some period of time.
"There is a dehydration risk where patrons cannot easily access water or obtain water.
"This is a particular problem which has emerged with dance venues."
Mr Face said the government would introduce new laws to force licensed venues to provide chilled water for free or at a nominal charge.
Under the new laws, a licensee who failed to provide adequate water would face a penalty of up to $20,000 and cancellation or suspension of their licence.
Apart from the dehydration risk, Mr Face said the lack of easy access to water also flew in the face of harm minimisation laws relating to alcohol intoxication.
The new laws were in line with the Licensing Court ruling which was increasingly imposing the condition that water be provided to patrons free of charge or at a nominal cost, he said.
Licensed premises had an obligation to ensure that water was realistically priced if not free of charge, Mr Face said.
Of the hotel and club industry, the tap removal incidents had been restricted to nightclubs, he said.
AAP