The Safe Drinking Water Act 2003 came into effect on 1 July 2004, and is the first Act in Victoria to deal specifically with the regulation of drinking water supplies.

Prior to this, the quality of drinking water was regulated through the Health Act 1958, the Health (Quality of Drinking Water) Regulations 2002, the Food Act 1984, and contractual and licence deeds between water businesses and the Department of Sustainability and Environment.

The Drinking Water Regulatory Unit, which has responsibility for the implementation and oversight of the Safe Drinking Water Act, is part of the Department of Human Services Victoria.

The Drinking Water Regulatory Unit works with the Victorian water industry, other units within the Department of Human Services, key stakeholders and other government departments to deliver the regulatory objectives of the Act.