The Rural Water Efficiency Project (RWEP) will upgrade critical infrastructure, reduce water losses and build a stronger, more reliable rural water system for the future.

The project has received $120 million from the Australian Government through the Resilient Rivers Water Infrastructure Program, with up to $40 million from Coliban Water, bringing the total project budget to $160 million.

As a customer-funded organisation, access to this external funding helps ensure Coliban Water can deliver this critical project while minimising cost impacts for customers

Our rural network was not designed for the demands placed on it today.

Within the project area, there are 301 km of open channels and gravity pipelines, along with eight balancing storages, with some assets dating back to the 1870s. Because this infrastructure is ageing and in poor condition, only around 20% of the water entering this part of the system is available for customer use. The rest is lost through leaks, seepage and evaporation.

With a changing climate, drought risk, population growth and increasing pressure on water resources, we need to improve how efficiently water is delivered. Continuing to operate the system in its current form is not sustainable.

On 15 April 2026, the Australian Government announced committing $120 million to greenlight the Rural Water Efficiency Project.

While this announcement marks the formal start of the project, this is a large and complex project that will be delivered in stages over several years.

We are now bringing together a dedicated project team to plan and deliver the Rural Water Efficiency Project. As the project progresses, we are committed to keeping you informed with clear, timely updates and providing opportunities for you to ask questions and share feedback.

Background

In August 2023, we welcomed a $3.7 million investment announcement by the Australian Government to develop a Detailed Business Case for a more efficient rural channel system. The funding complements our $2 million investment in the project.

The Coliban Water rural network supports lifestyle, agricultural and primary industry through 12 rural supply systems, comprising 360 kilometers of channels and 140 kilometers of pipelines. We typically supply between four and seven gigalitres of raw and recycled water to rural customers each year.

Originally built to supply the former booming mining industry and associated services, our rural water network is an ageing and leaky system that can now often be found passing through growing urban areas. In its current configuration it does not always support what’s best for the region.

The channels are largely unlined and inefficient. 79%, or an estimated 4 gigalitres, of water is lost each year due to leaks and seepage in both the Coliban Water channel and private channel networks.

Building on the work completed in the Preliminary Business Case in October 2022, this investment will support engagement work with our rural customers to develop options to update the rural network.

These options aim to improve customer service levels and provide greater water efficiency, as well as delivering significant water savings and better environmental and cultural outcomes.

We are not accepting any new rural licences at this time

As we progress with the design options for the project we won't be accepting any new rural licence applications. We need to make this effective straight away so that there are no new pipe locations or changes to the network that we haven't planned for, as we move to finalise the design and costs. These changes won't affect permanent or temporary water trading, or any changes in property ownership.

For more information see the 'Policy update May 2025' document under the Resources & Updates tab.

Rural Customer Advisory Group

Made up of nine representatives from across the rural system, this group has been operating for over 20 years. They meet quarterly and provide us with feedback on policy and operational challenges across the rural network. Members include:

• Brian Stephens & Paul Mannes - Eppalock Pipeline
• Malcolm Burrows - Harcourt
• Charles Thompson & Jon Vercoe - Specimen Hill
• Mark Browne - Ascot
• Jeremy White & Michael Chalkley - Emu Valley
• Ray Hope - Lockwood

The Rural CAG have been used opportunistically throughout the development of the detailed business case for the Rural Water Efficiency Project.

The project team will now be developing a detailed engagement framework and will examine opportunities to engage with our customers and the broader community throughout the various phases of project delivery.