The Government of Western Australia has announced a record AUD 2.7 billion water infrastructure investment for the 2026-27 financial year, a concrete expression of the strategic direction laid out in its recently published Made possible by water policy document.
The allocation sits within a broader AUD 6.4 billion, four-year capital works programme spanning Water Corporation, Aqwest and Busselton Water, targeting supply resilience for both metropolitan and regional communities across a state already confronting some of the most severe climate-driven water pressures anywhere on the planet.
By investing in new water sources, desalination, and essential maintenance across WA, we're future-proofing our State – Water Minister Don Punch
The policy context matters. Made possible by water paints a stark picture: since the 1970s, the South West has seen rainfall fall by up to 20 per cent and streamflow to dams by as much as 80 per cent. Where Perth's reservoirs once received 420 billion litres annually, inflows today often amount to just 10 to 50 billion litres. Meanwhile, Western Australia's population is projected to reach 4.4 million by 2050, and by 2035 Perth alone will require up to 125 billion extra litres of climate resilient water, nearly doubling current desalination output.
Where the money goes
It is against this backdrop that the 2026-27 budget takes on its significance. A newly created Regional Water Source Fund will receive AUD 52.9 million to advance source planning across rural communities, while AUD 64.1 million has been earmarked to strengthen existing and future sources feeding the Integrated Water Supply Scheme, which currently serves more than 2.5 million residents in the Perth and Peel region.
The Pilbara commands the largest single investment: AUD 606 million toward construction of the Dampier Seawater Desalination Plant, a project connected to a broader collaboration between Water Corporation, the Department of Water and Environmental Regulation, Yindjibarndi Aboriginal Corporation and Rio Tinto Iron Ore to reduce pressure on the culturally significant Millstream aquifer. A further AUD 11.8 million will upgrade the West Pilbara Water Supply Scheme, and AUD 23.8 million will explore supply options for the Boodarie Strategic Industrial Area near Port Hedland, where emerging industries including critical minerals processing are placing new demands on an already strained system.
System maintenance also features prominently, with AUD 166.7 million over two years committed to planned works aimed at reducing leaks and pipe bursts across the network. The Made possible by water document acknowledges that construction costs have risen by 40 per cent since 2019, nearly double the state's inflation rate, making this maintenance commitment particularly significant in financial terms.
Technology and the long game
The investment also encompasses technology, with smart metering rollouts already under way across regional towns and a pilot of 16,000 devices in Perth. In Exmouth, where smart meters were installed in 2024, 17 per cent of surveyed residents reported reducing their consumption, a meaningful data point for a state where around AUD 700 million in annual subsidies currently bridges the gap between the true cost of water production and what users pay.
Water Minister Don Punch framed the scale of the challenge and the government's response in direct terms: "By investing in new water sources, desalination, and essential maintenance across WA, we're future-proofing our State by supporting workers, protecting communities and ensuring water security in a changing climate."
Taken together, the budget and its underpinning strategy signal that Western Australia is treating water security not as a sector issue but as a foundational condition for economic and community survival.
