Australia needs to prevent the introduction of more "forever chemicals" amid warnings it is becoming increasingly difficult to deal with the contaminants already in the environment.
A federal senate inquiry is examining the extent of contaminations from the PFAS family of chemicals, which do not naturally break down and have been linked to health problems like cancer.
Water Services Association of Australia executive director Adam Lovell recommended severe restrictions and labelling on PFAS in non-essential consumer products so consumers have a choice to limit their exposure.
The presence of the chemicals is becoming increasingly difficult to manage, he told a hearing on Wednesday.
"We're finding (PFAS) literally everywhere," he said.
Sydney Water executive general manager Paul Plowman agreed the chemicals were "absolutely ubiquitous".
"So we do need to manage it within the urban water cycle," he said.
The agency is designing a thermal treatment facility to treat wastewater at high temperatures to destroy the chemical, leaving behind a reusable biochar.
"It's extremely energy intensive and very, very expensive," he said.
Utility costs are passed on to customers, and it would be cheaper and easier to avoid the presence of the chemicals than to treat them, he added.
NSW Environment Protection Authority chief executive Tony Chappel said more than 1100 sites in the state had been triaged, with significant contamination detected at 51 since legacy firefighting chemicals were found at Williamtown air force base and Newcastle Airport.
Rivers, lakes, a park and a school are among the NSW sites likely to have had significant exposure.
But the state agency has only so much power over sites that include Defence bases and federally-owned airports.
"Without legal powers to regulate or compel the commonwealth government this has created significant issues," Mr Chappel said.
For many of the listed sites, the environmental watchdog says the discovery of PFAS in the environment does not mean there is a human health risk.
While drinking water in Sydney and the Hunter region is regularly monitored, NSW Health is supporting an expanded screening test for water utilities managed by regional councils.
PFAS chemicals are known for their heat, water and stain resistance and have been commercially produced for decades for use in firefighting foam, aviation, carpets, fabric and cosmetics.
The federal inquiry is examining sources of contamination and the effectiveness of current regulations, along with the social, economic, health and environmental effects.
Stop PFAS Blue Mountains convenor Jon Dee criticised health authorities for not offering blood tests in communities where chemicals have been detected and said drinking water guidelines were inadequate.
The United States' Environmental Protection Agency agency has set an enforceable target of four nanograms per litre, but it also has a health-based goal of zero.
University of Sydney professor Stuart Khan said it was a purely aspirational statement by an agency that had "effectively plucked a number out of the air" and Australia's less-strict guidelines were aligned with the rest of the world.
