I am also birthing at Nepean and was planning a waterbirth!

Peace Angel i am very confused! ... have been told on multiple occasions that my plan for a waterbirth is fine as long as the plug is pulled when bub is actually birthing!
If they pull the plug, it's not a waterbirth! You can labour in the bath at nepean, but you cannot birth in the bath. What Peace Angel has said is correct, I'm afraid. I have had a few clients who have birthed at Nepean (and I have worked there) and they do not support waterbirths. None of the hospitals in the area health service support waterbirths (westmead, blue mountains, blacktown etc).

The only option for a waterbirth is home birth.