The Infrastructure Minister Liz Kimmins has launched an audit into the governance of NI Water.
In a written statement, the minister said there are a number of ongoing issues, some of which have been subject to investigation and have already resulted in the need for action plans.
Kimmins did not outline the ongoing issues in her announcement.
However she said cited the "scale, volume and severity of these concerns" combined with the "time it has taken NI Water to conduct the required investigations" in her decision to launch the investigation.
She said this, "alongside other matters of compliance" had led her to conclude that this work is necessary to "provide appropriate assurance that NI Water's systems and processes are robust, effective and fit for purpose".
She said the department allocates more than "half a billion pounds of taxpayers' money to NI Water annually", adding, that "it is crucial that I am assured that there is accountability to the Department, the Assembly, the NI Water Board, wider stakeholders and the public."
In 2025 there was an investigation into why the provider was unable to live within its budget.
Previously, people from rural communities and businesses told BBC News NI that areas are being left "devastated" due to issues with Northern Ireland wastewater network, which is overseen by NI Water.
In parts of Northern Ireland, new houses cannot be built and businesses are unable to expand.
How is NI Water funded?
Northern Ireland is the only part of the UK where households do not pay directly for their water.
Instead, NI Water receives a government subsidy which diverts more than £300m annually from the Stormont Executive's budget.
Since its founding, NI Water has been underfunded compared to the amount the independent Utility Regulator says it needs.
Households previously paid for water through a portion of their rates bill but that link was broken in 1998.
However, a report in June 2025 suggested that a £100 increase in the average household rates bill could largely solve Northern Ireland's water infrastructure crisis.