Environment and Natural Resources Committee Inquiry into Melbourne’s Future Water Supply June 2009 Inquiry into Melbourne’s Future Water Supply Report of the Environment and Natural Resources Committee on the Inquiry into Melbourne’s Future Water Supply ORDERED TO BE PRINTED Victorian Government Printer 2009 Parliamentary Paper No. 174 Session 2006-2009 i Parliament of Victoria Environment and Natural Resources Committee Inquiry into Melbourne’s Future Water Supply ISBN - 978-0-9757811-4-2 The Committee would like to thank Melbourne Water for allowing its images to be used on the front cover This report is printed on 100% recycled paper. Table of contents Committee Members ........................................................................................... xi The Environment and Natural Resources Committee .................................... xiii Terms of reference ............................................................................................. xv Chair’s foreword ............................................................................................... xvii Executive summary........................................................................................... xix Framework for managing Melbourne’s water supply ..................................... xix Water use efficiency and conservation ............................................................ xx Stormwater and rainwater – harvesting, storage and use ............................ xxii The reuse of treated wastewater ..................................................................... xxii Groundwater .................................................................................................... xxiii Desalination ..................................................................................................... xxiv Other optional water sources ......................................................................... xxiv Recommendations............................................................................................ xxv Definitions and acronyms............................................................................... xxxi Chapter 1: Introduction .................................................................... 1 Background to the Inquiry ................................................................................... 1 Scope of the Inquiry ............................................................................................. 3 Inquiry process..................................................................................................... 3 Issues raised during the Inquiry.......................................................................... 5 Melbourne’s water supply.................................................................................... 7 Rivers and reservoirs.............................................................................................. 9 Recycled water ..................................................................................................... 15 Stormwater and rainwater..................................................................................... 16 Groundwater......................................................................................................... 17 Melbourne’s water demand ............................................................................... 18 Projections of Melbourne’s future water supply and demand........................ 19 Inquiry report ...................................................................................................... 22 Chapter 2: Framework for managing Melbourne’s water supply .. 23 Introduction......................................................................................................... 23 Policies and plans .............................................................................................. 23 Securing Our Water Future Together, 2004 ......................................................... 24 Long term water resources assessment............................................................... 26 Regional sustainable water strategies .................................................................. 26 Water Supply-Demand Strategy for Melbourne .................................................... 29 The Next Stage of the Government’s Water Plan, 2007....................................... 30 Water authorities’ water plans .............................................................................. 32 The Water Act: Victoria’s legislative framework.................................................... 33 iii Inquiry into Melbourne’s Future Water Supply Governance and key stakeholder relationships .................................................... 35 Regulatory bodies................................................................................................. 41 Funding for water supply programs....................................................................... 42 Chapter 3: Water use efficiency and conservation........................47 Key findings ........................................................................................................ 47 Introduction......................................................................................................... 49 Definition of water use efficiency and conservation .............................................. 50 Progress in water use efficiency and conservation......................................... 51 Residential water conservation and efficiency ...................................................... 57 Non-residential water conservation and efficiency................................................ 59 Discussion ............................................................................................................ 59 Water conservation and efficiency programs .................................................. 60 Victoria’s water conservation and efficiency programs ......................................... 60 Water use efficiency and conservation programs in Orange County, California ... 61 Water restrictions ............................................................................................... 63 Permanent water savings rules............................................................................. 69 Water offset arrangements ................................................................................... 70 Alternatives to water restrictions ........................................................................... 71 Discussion ............................................................................................................ 73 Behavioural change programs .......................................................................... 74 Discussion ............................................................................................................ 78 Water efficient buildings and appliances ......................................................... 79 Water efficiency rating systems ............................................................................ 82 Mandating water efficiency in buildings................................................................. 85 Technological innovation ...................................................................................... 89 Discussion ............................................................................................................ 89 Water Smart Gardens and Homes Rebate Scheme and other incentives for water efficient products ..................................................................................... 91 Other incentives.................................................................................................... 95 Discussion ............................................................................................................ 96 Water efficiency programs in the non-residential sector ................................ 98 Discussion .......................................................................................................... 101 Water pricing to encourage water saving....................................................... 102 Pricing review and regulation.............................................................................. 103 Increasing charges for water............................................................................... 104 Fixed and variable pricing structure .................................................................... 105 Rising block tariffs............................................................................................... 107 Revenue security ................................................................................................ 109 Other pricing models........................................................................................... 110 Discussion .......................................................................................................... 111 Water infrastructure leak detection and repair............................................... 112 Discussion .......................................................................................................... 116 iv Table of Contents Chapter 4: Stormwater and rainwater – harvesting, storage and use ...................................................................................................... 117 Key findings ...................................................................................................... 117 Introduction......................................................................................................