How Melbourne is future-proofing its water supply
Globally, water managers face a difficult reality: climate change is outpacing the capacity of our water systems.
The United Nations University calls this the risk of water bankruptcy, where systems become so stressed they cannot recover without intervention. This perspective prompts a critical question: are we living within our hydrological means, or are we using more water than our environment can provide?
For Melbourne, this warning is real, but so are our actions. We are experiencing reduced rainfall, more frequent droughts, longer fire seasons that threaten water quality, and more intense heatwaves that stress our rivers and creeks as well as drive up per capita water use. At the same time, demand from our rainfall-dependent sources already exceeds supply, and desalinated water has supplied around a quarter of our storage capacity since 2016. Heavier downpours and rising sea levels are also increasing flood risks. These challenges are already influencing our planning, investment, and operations.
Recent developments underscore the urgency. In parts of central Victoria, inflows to storages have declined by more than 50 per cent over recent decades, while population continues to grow and the threat of damaging bushfires increases. It is a reminder that climate pressures are being felt across the state, and that all water corporations, regardless of their size or geography, are confronting similar challenges.
But the Victorian water sector, and Melbourne Water, is taking action now. We are implementing system-wide measures to prevent the water deficits highlighted by the UN. Our role is to safeguard Melbourne’s liveability by ensuring secure water, reliable sewerage, healthy waterways, and resilient drainage. This requires us to adapt now rather than later.
The Victorian Government has established a Water Security Taskforce to investigate long-term options to strengthen water security for our communities. Under the stewardship of this bipartisan taskforce, we are analysing all options in our water supply system to withstand a drier climate for a growing city. This involves expanding supply sources, improving integrated planning across water types, and collaborating with government and retailers to meet the needs of a growing population. Recycled water, stormwater harvesting, and desalinated water are becoming essential to reduce pressure on traditional supplies and support the city’s diverse needs.
Our waterways are also a priority. We are studying the effects of reduced rainfall and lower groundwater flows on river health and acting early to protect the specific and ecosystems that depend on them. Working with the Victorian Environmental Water Holder, we deliver environmental flows to support threatened species such as the platypus, maintain critical habitat, and keep our rivers functioning through dry periods. We are also partnering with Traditional Owners to strengthen cultural water rights and ensure reliable water reaches places of deep cultural significance, such as the rewatering of the Bolin Bolin Billabong on the Yarra River, a site central to ceremony, gathering and practice for thousands of years. Alongside this, we are supporting wetlands as drought refuges, planning revegetation with climate-resilient species, and creating cooler, greener public spaces that support community wellbeing.
We are upgrading our sewerage network to ensure reliability under climate and population pressures. This includes using our Network Outlook tool to model future stress points, assessing sea-level rise impacts on coastal infrastructure, and planning targeted upgrades to keep the system safe, resilient, and effective.
Water bankruptcy does not have to be an inevitability, but we must act. Victoria benefits from foresight, strong institutions, and a community that values water. By acting early, investing in resilience, undertaking bi-partisan investigations into future water sources, protecting natural systems, and planning for current climate realities, we are working to mitigate the impacts of water bankruptcy on our communities. At the same time, the community has a role to play in preserving water. Permanent Water Saving Rules remain in place year-round to encourage conservation efforts. Simple actions like shorter showers, turning off taps while brushing teeth, using a broom instead of a hose for outdoor cleaning, can save precious water – because every drop counts.
The decisions we make now can ensure our water system is strong for future generations. In this decade that matters, we must collaborate to use water wisely, support innovation and implement policies that secure our water future.
This article appears in the March/April 2026 edition of Utility. Subscribe HERE.
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