Sensor technology can provide more representative water quality data, and often at a lower cost, than traditional methods. In this study, Environment Protection Authority Victoria (EPA) partnered with Banyule City Council to test the use of water sensor technology for tracking the ongoing health of waterways and detecting pollution incidents in real time. We also aimed to understand how this technology can be incorporated into EPA’s operational and emergency functions. Water sensors were deployed in Darebin Creek, north Melbourne, upstream and downstream of an extensive industrial estate stormwater drain outfall, as well as at the outfall itself. These sensors monitor water level, oxidation-reduction potential (ORP), electrical conductivity (EC), pH, temperature, and turbidity, and are equipped with a central wiper. Other sensors were deployed inside the stormwater drainage network of the industrial estate. These sensors monitor water level and volatile organic compounds. Continuous, real-time data from this network of sensors have been collected since October 2022, and analysed using maps and dashboards. A key feature of the sensors is that they provide an early warning system of pollution through text messages and emails, as well as information to narrow down the location of the incident. Using these data, EPA officers have been able to respond faster and be more efficient in tracking the source of the pollution. Furthermore, the data has been successfully used to engage, influence, and support businesses in understanding and meeting their environmental obligations. More data analysis is currently underway. The analysis can guide EPA’s operational decision-making, for example, when planning for compliance inspections. This study shows how this type of novel monitoring technology can be used by water managers and regulators to optimise and focus operational efforts, and to rapidly respond to pollution incidents or emergencies that pose a risk to the environment and human health.