In August 2006 the Independent Transport Safety Regulator (ITSR), an agency of the Government of New South Wales that regulates safety and accredits railway operators, identified the Zig Zag Railway (and one other operator) as a "higher risk" isolated line operator because of its complex operations and high numbers of passenger trips. The ITSR gave Zig Zag Co-operative additional time to develop a safety improvement plan in order to comply with the Act, that took effect for all heritage railway operators from 1 January 2007.