The water quality crisis experienced in Australia by Sydney Water Corporation (SWC) in the summer of 1998 was due to the repeated detection of high levels of Cryptosporidium oocysts and Giardia cysts in water in the distribution system. The detection levels of both cysts and oocysts ranged from non-detects to hundreds of parasites per L of finished water. Boil water advisories were in effect at three different times, for a total of seven weeks. The decisions to issue boil advisories were in effect at three different times, for a total of seven weeks. The decisions to issue boil advisories were made primarily on laboratory testing showing high and/or persistent levels of Cryptosporidium oocysts and Giardia cysts in the Sydney Water system. These contamination events were so unusual, and appeared to be uncontrollable, leading the government of New South Wales to establish a formal inquiry to investigate the cause of the contamination. This paper reviews the reports of the Sydney Water Inquiry, records supplied by Australian Water Services, and discusses an independent audit of the laboratory analyzing samples. Results indicate that reliance on poor quality monitoring data created an international water quality crisis where no water quality problems or threats to public health existed.