Unlike the city run ferry service, water taxis are privately run and cost more to cover the same distance. The taxis offer services to those who are stranded on the Islands when ferry service is disrupted or ended or to patrons who have missed boarding their cruise ships at various docks along the mainland. Inner taxis normally offer services within the inner harbour only.
Water taxis are licensed like land based taxis, and are also regulated by boating regulations.  These regulations require the operator to be a licensed motor boat operator and have required life jackets for all occupants.