Infrastructure Victoria’s 2025-55 strategy stressed manufactured water sources — especially treated wastewater and desalinated seawater — would be essential as the climate became more unpredictable and demand rises.
According to the strategy, up to 65 per cent of Melbourne’s future water needs could come from these non-rainfall sources.
A pilot recycled water plant is proposed to cost in the range of $20 million to $50 million, with an additional $5 million to $10 million earmarked for technical studies and community engagement to build trust and clarify regulatory requirements.
Recycled water is highlighted as likely being cheaper than stormwater, using less energy and being far less sensitive to rain variability.
At the same time, Infrastructure Victoria recommends developing a detailed business case for boosting desalination capacity — either by expanding the existing Wonthaggi plant or potentially building a new facility.
Because desalination infrastructure can take up to a decade to deliver, preparatory work needs to start now to ensure water is available when demand peaks.
Securing a steady supply of manufactured water would reduce reliance on rainfall and traditional sources, helping farmers maintain irrigation and production even during dry periods, Infrastructure Victoria said.