Water you waiting for? Victoria’s Annual Water Outlook has some positives, but the summer’s dry forecast is no excuse for wasting the most precious resource.
Prepared by the Victorian Government, the Annual Water Outlook is produced every year with the intention of keeping Victorians informed about the State’s water supplies.
The Outlook consolidates information from the annual water outlooks of Victoria’s 18 urban and rural water corporations. It uses this information to outline the strategies of the state’s utilities to manage shortages, especially during the drier summer and autumn months.
The latest Annual Water Outlook, released in December 2024, didn’t predict water restrictions this summer. But with climate variability and a growing population knocking on our water tanks, this year’s report is a clarion call: use water wisely today to avoid drought-level drama tomorrow.
Why this year’s Outlook matters
Victoria’s Annual Water Outlook is more than just a weather forecast; it’s a blueprint for water security across urban, rural and environmental systems. As of November 2024, storage in Melbourne stood at 88.4 per cent, while regional storage averaged 78.7 per cent. These figures, though encouraging, come with a caveat.
Victorian Minister for Water Harriet Shing said, “Wet conditions in recent years have provided a buffer against the below-average rainfall seen across most of the state in spring and winter.”
However, that buffer won’t last forever. Shing noted that Melbourne alone added 140,000 new residents in 2024.
“To support this growth, the Victorian Government has set a target of 800,000 new homes over the next decade. Every new home adds to the demand on our water resources,” she said.
The snapshot provided by the report also reflects the challenges of managing water in an increasingly variable climate.
According to Melbourne Water, “Even above-average inflows are insufficient to meet current annual water demand.”
The Thomson Dam is Melbourne’s largest reservoir, making up about 60 per cent of Melbourne’s total water storage capacity. It was designed to build up Victoria’s water reserves in wet years, for use when conditions are dry. It can hold up to 1,068,000 megalitres of water within its catchment area of 48,700 hectares.
David Norman, Melbourne Water‘s Head of Water Supply, emphasised the importance of the Thomson Dam. “It helps when imagining our water supply network to think of the Thomson Dam as a savings account that we try to keep as full as possible so we can manage during future drier periods,” he said.
Such insights highlight the urgency of addressing supply gaps before they become crises. South East Water Managing Director Lara Olsen spoke on behalf of Melbourne’s water utilities and underlined the need for continued water conservation. She pointed out that while it’s positive that Melburnians used slightly less water at home this year – 161 litres per person per day, compared to 163 litres for the previous year – they cannot afford to become complacent.
“Our water storages are secure right now, but we know hotter conditions are expected over the summer, and warmer and drier conditions in the longer term,” she said. “So, it’s important to continue to keep making every drop count and aim for 150 litres of water per person per day to keep our supplies secure now and into the future.”
Secure for now, but not forever
The good news is that water restrictions are unlikely for Melbourne and regional cities this summer and autumn. However, this doesn’t warrant complacency. The Bureau of Meteorology’s forecast indicates above-average rainfall for parts of the state, but temperatures are also expected to rise. This duality emphasises the need for vigilance.
“Victoria is the fastest-growing state in the country,” Shing said. “Planning ahead is critical to ensure we have enough water to meet future demand.”
Water corporations are already bracing for long-term challenges. The Department of Energy, Environment and Climate Action (DEECA) collaborates with urban water providers to secure new supply sources, including recycled water and desalination expansions.
“Failure to plan and deliver new water supplies in time puts us at risk of extended and severe water restrictions,” Shing said.
The state’s desalination plant is a cornerstone of this strategy. It produces non-rainfall-dependent water, which has bolstered Melbourne’s resilience.
Meanwhile, regional water providers are focused on securing their systems for the years ahead. Barwon Water, for instance, has highlighted how small towns in its supply area could face restrictions if drier conditions persist into 2025.
Barwon Water Managing Director Shaun Cumming said investing in alternative water sources was essential to ensuring supplies kept up with a rising population and changing climate.
“As the region continues to attract more residents and there’s growing demand for our services, we need to tip the balance from relying on rainfall to more climate-resilient sources,” Cumming said. “This includes increasing our use of and exploring opportunities for manufactured water, such as recycled water for non-drinking water purposes.
“All water matters, so we’ll continue to focus on water efficiency and conservation measures to ensure we’re smart and sustainable with our resources.”
The looming threat of drier conditions has also prompted calls for greater public engagement in water conservation efforts.
“Collaborating with communities ensures that everyone has the tools and knowledge to reduce water consumption effectively,” Shing said.
Such collaboration is vital in urban and rural contexts, where varying needs demand tailored solutions.
Saving water: a collective effort
While governments plan for the future, households can act now. Programs like “Target 150” encourage Melburnians to limit daily water use to 150 litres per person. In its Annual Water Outlook, South East Water reported that smart water practices in homes and businesses are critical to reducing demand for our precious resources. The Water Conservancy’s Smart Water Advice initiative offers practical tips for everyday water savings, such as fixing leaks promptly and choosing water-efficient appliances.
Permanent Water Saving Rules also apply year-round, covering outdoor water use.
The Victorian Government’s permanent water-saving (or use) rules are always in place to help manage water efficiently. The rules are uniform across Victoria and included in each water corporation’s permanent water-saving plan, and breaking these rules can result in penalties. The rules will not prevent the need for additional water restrictions during major drought periods; but they will help Victorians use water more efficiently and encourage all people to value this precious resource for the long term.
Innovative water-saving programs extend beyond homes. The Schools Water Efficiency Program helps educational institutions monitor usage and detect leaks using digital tools. Similarly, the Community Rebate Program supports low-income households with water-saving retrofits, including replacing inefficient taps and showerheads. Such efforts underscore the shared responsibility of water conservation.
Local councils also play a significant role. Many are adopting water-sensitive urban design principles, such as permeable pavements and rain gardens, to maximise stormwater capture and reduce reliance on potable water.
Innovative approaches for the future
Victoria’s water security depends on creativity and collaboration. The desalination plant, for instance, remains a key asset. Since its commissioning in 2016-17, it has supplied 455 gigalitres of drinking water. Melbourne Water estimates that storage levels would be at 63.3 per cent today without the plant. As far as it is concerned, desalination is not a last resort; it’s a reliable supplement to Victoria’s rainfall-dependent sources.
Similar to the Western Port Recycled Water Scheme, recycled water projects offer enhanced resilience. This scheme aims to supply agricultural enterprises with 4,000 megalitres of Class A recycled water each year, minimising reliance on rainfall-dependent sources. In addition, the Victorian Government’s investment in water infrastructure initiatives, such as the Macalister Irrigation District Modernisation Project, underscores the dual advantages of improving water efficiency and bolstering agricultural productivity.
“The water our storages captured during the wet years that preceded this one has ensured water availability is still relatively healthy heading into 2025,” Warren Blyth, Water Distribution Services General Manager at Goulburn-Murray Water, said.
Additionally, partnerships with Traditional Owners aim to restore cultural water rights. Since 2021, 6,605 megalitres have been returned to Traditional Owner organisations.
“Water is more than a resource; it’s a connection to Country,” Shing said. “This work reflects our commitment to supporting Traditional Owners in managing water landscapes sustainably.”
Barwon Water’s Urban Water Strategy outlines strategies to extend the reach of the Melbourne-Geelong Pipeline to supply growing demand and allow water to be returned to the Moorabool River for Traditional Owners’ cultural values and environmental needs.
Another key strategy is exploring stormwater harvesting. Authorities aim to reduce pressure on mains supplies by capturing and reusing rainwater in urban areas. The City of Melbourne’s Growing Green Guide highlights how green roofs and rain gardens can help achieve this dual purpose.
This approach aligns with the broader goals of the Central and Gippsland Region Sustainable Water Strategy. The strategy expands on plans to expand the use of desalination, recycled water, and stormwater, ensuring a diversified portfolio of water sources for Victoria’s future.
“A multi-pronged approach is the only way to secure water for all sectors,” Shing said.
Balancing environmental needs
Beyond urban and agricultural water use, the health of Victoria’s rivers, wetlands and ecosystems remains a priority. Environmental watering programs, led by the Victorian Environmental Water Holder (VEWH), aim to support biodiversity and improve waterway health. Healthy ecosystems are crucial for the well-being of communities and the environment.
Programs such as these ensure that water flows support native fish, waterbirds, and vegetation. In the Barmah Forest, for example, environmental flows have helped restore wetland habitats, benefiting species like the Moira grass. Meanwhile, in the Latrobe River, targeted releases improve water quality and protect against algal blooms.
The success of these programs hinges on maintaining water reserves for environmental purposes.
“By balancing human and environmental needs, we ensure that water remains a shared resource for generations to come,” Shing said.
What does the industry need to do?
So, what’s next for Victoria? As storage levels hold steady and innovation continues, the challenge lies in maintaining this momentum. Planning for the future isn’t just about new technologies or government policies; it’s about a collective mindset.
By treating every drop as precious, we can ensure that water security becomes not just a goal but a legacy. Every Victorian has a role to play, from the showerhead to the water grid. The question isn’t whether we can save water – it’s whether we will. Together, we can make every drop count.
For more information, visit water.vic.gov.au
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