Melbourne Water has submitted its 2026–31 Price Submission to the Essential Services Commission (ESC), the State’s independent economic regulator, outlining a AUD 7.8 billion investment plan to secure Melbourne’s water future.
Developed through engagement with more than 8,000 customers, water corporations, and Traditional Owner partners, the proposal focuses on supporting population growth, strengthening climate resilience and protecting waterways and drainage systems.
“We've listened closely to our customers and communities,” said Managing Director Dr Nerina Di Lorenzo. “This Submission reflects their voices and channels investment into the services and outcomes that matter most to Melburnians.”
The five-year plan includes AUD 2.9 billion to modernise drinking water infrastructure, AUD 2.7 billion to maintain sewerage networks, and AUD 2.2 billion to enhance waterways, drainage and flood management.
“These include investments in water security and readiness for large-scale water supplies that ensure our city is resilient to climate change while it grows,” Dr Di Lorenzo said.
Five key performance commitments underpin the plan: reliable water supplies, sustainable sewerage services, healthy waterways, improved drainage and flood resilience, and transparent collaboration across the water sector.
Melbourne Water will not increase prices above inflation in 2026–27. From 2027 to 2031, bills are projected to rise by up to 1.5 per cent annually above inflation, around AUD 17 per year for the average household. The waterways and drainage charge paid by homeowners and businesses in Melbourne will not rise beyond inflation. This does not include any adjustments by retail water corporations and usual price adjustments. As the provider of bulk water and sewerage services for Greater Melbourne, Melbourne Water’s charges account for about half of the average household water bill across metropolitan Melbourne.
For the first time, Melbourne Water will introduce support programs for vulnerable customers, complementing the existing measures of retail water corporations.
The ESC will now assess the proposal’s efficiency and alignment with community expectations. Melbourne Water’s full submission is available online.
