The Water Efficiency Fund (WEF) is PUB’s co-funding scheme for organisations that want to use less water. It funds water efficiency assessments (70% of cost, up to S$30,000), pilot studies (70%, up to S$150,000), full-scale water recycling plants (up to S$5 million per project) and water-efficient equipment (up to S$300,000 per project). Most categories require premises using at least 1,000 cubic metres of water a month, and work may only start after PUB approves the project.
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For factories, data centres, hotels, laundries, food plants and large commercial buildings, water is a significant and rising utility cost. The WEF can pay for a professional water audit and then a large share of the recycling plant or equipment it recommends. The rules are detailed: PUB’s application information (updated 31 July 2026) sets thresholds, savings formulas and a two-stage payment that depends on proving the savings. This guide explains each category in plain terms.
What does the Water Efficiency Fund cover?
| Category | Main eligibility thresholds | Funding | Cap |
|---|---|---|---|
| Water Efficiency Assessment (water audit) | Premises using at least 1,000 m3 a month | 70% of assessment cost | S$30,000 |
| Pilot Study | At least 1,000 m3 a month, and at least 10% water savings or 6,000 m3 a year | 70% of pilot cost | S$150,000 |
| Recycling or use of alternate sources of water | Confirm current thresholds with the WEF Administrator | Lower of water savings incentive or 50% of capital cost | S$5 million per project |
| Adoption of water-efficient equipment | At least 1,000 m3 a month, and annual savings of at least 1,200 m3 | Lower of water savings incentive or 50% of total qualifying cost | S$300,000 per project |
| Industrial Water Solutions Demonstration Fund (IWSDF) | At least 10,000 m3 a month, at least 5% savings, and an emerging or innovative technology not yet implemented in the industry | Lower of water savings incentive or 50% of capital cost | S$5 million per project |
Monthly consumption is based on potable water, NEWater and industrial water shown in the latest six months of water bills. Premises that each use less than 1,000 m3 a month can apply collectively for the assessment, pilot and equipment categories.
How is the water savings incentive calculated?
For recycling plants, water-efficient equipment and IWSDF projects, PUB pays the lower of two amounts:
- Water savings incentive: S$0.71 per m3 of potable water, S$0.45 per m3 of NEWater or S$0.37 per m3 of industrial water saved, over the economic life of the plant or equipment or 15 years, whichever is earlier; or
- Capital cost: up to 50% of the capital cost (for equipment, 50% of the total qualifying cost, which includes equipment and construction or installation).
The result is then subject to the cap for that category.
Example: A beverage plant uses 25,000 m3 of potable water a month. It plans a recycling plant costing S$1.4 million that will save 200 m3 of potable water a day, with an economic life of 10 years. The savings incentive is 200 x 365 x 10 x S$0.71 = S$518,300. Half the capital cost is S$700,000. PUB would fund the lower figure, S$518,300, well within the S$5 million cap. Half (S$259,150) would be paid on commissioning and the balance in the third year if at least 75% of the declared savings are achieved. These figures are illustrative.
How is each category paid?
| Category | First payment | Second payment |
|---|---|---|
| Water Efficiency Assessment | Single payment after the assessment is complete, the premises obtains Water Efficient Building (Basic) certification and PUB approves the report | |
| Pilot Study | 50% on commissioning of the pilot plant | Up to 50% when PUB approves the pilot report |
| Recycling plant | 50% on commissioning | Up to 50% in the third year after commissioning, if at least 75% of declared savings are achieved and the report is approved |
| Water-efficient equipment | 50% on completion of installation | Up to 50% after one year of monitoring, if at least 75% of declared savings are achieved and the report is approved |
| IWSDF | Reimbursement on completion of works and proof of payment, with full reimbursement expected on plant completion and meeting the Letter of Offer terms | |
The assessment report must include a Water Efficiency Management Plan with a water balance chart, the current baseline Water Efficiency Index, and proposed improvement measures with estimated savings, feasibility and timeline.
Which projects are not eligible?
PUB’s non-exhaustive list of exclusions includes:
- replacing PUB-supplied water with another type of PUB-supplied water;
- rainwater harvesting projects;
- water-efficient fittings such as taps, showerheads, flushing cisterns and urinals;
- work done to comply with regulatory requirements, such as mandatory recycling for specific sectors, trade effluent discharge limits or earth control requirements; and
- private water meters that the premises is already required to install, for example under SS 636 for larger new developments, or for qualifying consumers under the Water Efficiency Management Practices rules. Remote monitoring added to meters can still be funded.
Large water users with net consumption of at least 60,000 m3 a year already have mandatory water efficiency requirements, including an annual Water Efficiency Management Plan. Work required by those rules cannot be funded, but projects that go beyond them may be.
How do you apply?
- Check consumption. Pull six months of water bills (within one year of the application date) and calculate average monthly use by water type.
- Consult PUB. PUB encourages applicants to contact the WEF Administrator at [email protected] to discuss the project before lodging it.
- Get at least three budgetary quotations. Each must be on the vendor’s letterhead and signed on the first or last page.
- Write the proposal yourself. PUB requires the project proposal to be written by the applicant, not the vendor (except for water efficiency assessments).
- Complete the declarations. These include confirming any other government incentives for the project and that there are no related-party transactions between the vendor and the applicant. The CEO, MD or equivalent endorses the form.
- Submit one hard copy with endorsed supporting documents to the WEF Administrator, Water Supply Network Department, PUB, 40 Scotts Road #15-01, Environment Building, Singapore 228231.
- Wait for PUB’s express approval before starting. After accepting the Letter of Offer, you normally have 12 months to complete the assessment, commission the plant or install the equipment.
Documents checklist
- ACRA records dated within one year of the form’s endorsement date.
- Six months of water bills (and equivalent records for other water sources).
- At least three budgetary quotations; consultants’ proposals for an assessment.
- Project proposal with schematic diagram of the proposed system or equipment.
- Current water balance chart and proposed water balance chart after implementation.
- Meter installation schematic, if the assessment relies on metering.
- All costs stated excluding GST, to two decimal places.
Plumbing work must be done by a PUB-licensed water service plumber.
Tax and accounting points
PUB’s application information states that assessment funding is revenue in nature, while pilot, recycling, equipment and IWSDF funding is capital in nature, and refers applicants to IRAS on the tax effect. Capital grants generally reduce the cost on which capital allowances can be claimed. Our article on the tax treatment of government grants explains this, and our guide to FRS 20 grant accounting covers how to present the grant in the financial statements. If the second payment depends on achieving 75% of savings, plan for the risk of a reduced payment; see what happens when grant targets are missed.
Common reasons applications fail or payments are reduced
- Starting work or placing orders before PUB’s approval.
- Consumption below the category threshold once averaged over six months.
- Projects that only meet a mandatory requirement.
- Vendor-written proposals, or fewer than three valid quotations.
- Over-stated savings that are not achieved, putting the second payment at risk.
- Related-party vendors, which conflict with the declaration.
Projects that also cut waste or energy may qualify for other schemes, such as the NEA 3R Fund. Our directory of Singapore government grants for companies lists the alternatives.
Frequently asked questions
Can an office tenant apply for the Water Efficiency Fund?
The test is the premises’ water consumption, not the type of business. Premises below 1,000 m3 a month can apply collectively for some categories, but most offices will fall well below the thresholds.
Is rainwater harvesting funded?
No. PUB lists rainwater harvesting projects as not eligible.
How long do we have to complete the project?
Normally 12 months from accepting the Letter of Offer, unless PUB approves other dates. IWSDF projects follow milestones in the Letter of Offer.
Can we combine the WEF with another government grant?
You must declare any other government incentive granted or applied for on the same project. Do not claim the same cost twice.
Is the application online?
PUB’s current application information asks for one hard copy, with endorsed supporting documents, sent to the WEF Administrator.
Official source: PUB Water Efficiency Fund application information (31 July 2026).
Information checked against official sources on 6 November 2026.
Free grant consultation: is the Water Efficiency Fund right for your company?
Raffles Corporate Services has in-house certified grant consultants who are experienced with Singapore grant applications and the full grant process, from checking eligibility and preparing the proposal and supporting documents to submitting claims and meeting the conditions after approval. We can arrange a free consultation to review your company and identify which grants, including the Water Efficiency Fund, may be applicable.
Email [email protected] or WhatsApp +65 8501 7133 to book a time. PUB decides every application, and no consultant can guarantee approval.
The Editorial Team, Raffles Corporate Services