STRATEGY Urban Water 2017
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Urban Water
STRATEGY
2017
ABORIGINAL ACKNOWLEDGEMENT City West Water respectfully acknowledges the Traditional Owners of the lands and waters upon which we work and operate. We pay our deepest respects to the traditional custodians past, present and future. We acknowledge the continued cultural, social and spiritual connections that Aboriginal people have with the lands and waters, and recognise and value that the Traditional Owner groups have cared for and protected them for thousands of generations. We will further develop our partnership with the Traditional Owner groups to ensure their contributions to the future of the water management landscape and to maintain their cultural and spiritual connection.
CONTENTS
1 INTRODUCTION PART B: BACKGROUND AND
Why do we need an urban water strategy? 5 CURRENT ACTIVITIES 42
1.1 City West Water has some key features 6
1.2 There may be a shortfall of supply over demand 7 7 Context and current practice for
management of water and
1.3 Viable solutions must reflect adaptive and
wastewater services 43
integrated approaches 9
7.1 Drinking water supply 43
2 What are the requirements 7.2 Alternative water supply 46
for an urban water strategy? 11 7.3 Managing water usage 48
2.1 Stakeholder expectations 11 7.4 Managing wastewater services 51
2.2 Responding to legislative and other obligations 12
2.3 City West Water business strategy 12 8 Techniques for
managing uncertainty 55
3 Structure of this document 15 8.1 Managing the effects of climate change 55
8.2 Adaptive management 57
8.3 Trading using water grid and markets 58
PART A: STRATEGIC APPROACH AND ACTIONS 16
9 Supporting liveability and wellbeing 61
4 Reliability and quality of water and 9.1 Healthy public open spaces 61
wastewater services 17 9.2 Healthy waterways 62
4.1 Responding to trends in supply and demand
9.3 Greening the West 62
for water 17
4.2 Managing and developing sources of water 20 10 Investment evaluation 65
4.3 Making every drop count 21 10.1 Identifying opportunities 65
4.4 Managing the environmental impact of 10.2 Investing in the right options 65
treated wastewater 24
4.5 Managing our investment in assets and resources 25 11 CONCLUDING REMARKS 68
5 Community liveability and wellbeing 29 12 APPENDICES: FURTHER READING
5.1 Partnering and leading for the benefit of the AND HELPFUL LINKS 70
community 29
5.2 Engaging with the general community 32 GLOSSARY 80
5.3 Engaging with Aboriginal communities 33
6 Delivering the Urban Water Strategy 37
1
INTRODUCTION
Why do we need an
urban water strategy?
We need access to enough water to meet basic human needs and to support a healthy environment and
economy. Without water, trees and vegetation cannot provide the range of ecosystem services that assist
in creating a truly liveable city, such as: temperature regulation; air quality improvements; carbon storage;
habitat; and stormwater, waterways and catchment benefits. Greener urban environments can offer low-
cost preventive strategies to improve community health, reduce heat stress, increase amenity and foster
social cohesion.
We need clear and consistent direction that will foster the right This Urban Water Strategy seeks to identify how the supply-
behaviours and decisions to deliver the best possible outcomes demand balance for water might change over the next 50 years
for the communities we serve that take account of: and what measures we need to take to:
• the pressure on demand for services created by a • understand, and potentially modify, the emerging demand
growing population for water
• changes in the supply of water created by a • manage, and develop as required, options for the supply
changing climate of water to most effectively and efficiently meet the
emerging demand.
• our combined impact on the environment and
urban liveability. This section presents:
By the end of the Millennium Drought, our customers had • a snapshot of City West Water’s service area
achieved significant water savings – some of the water saving
• a high level analysis of future supply and demand
behaviours have now become second nature. The community
has also invested in the Victorian Desalination Project. However, • a brief description of potentially viable solutions to any
the combination of these measures still does not guarantee emerging supply-demand imbalance and need for an
security of water supply to see us through the next 50 years. adaptive and integrated approach to planning.
City West Water is responsible for acquiring the water needed This section is not intended to tell the whole story. It
by customers in our service area. If ‘business as usual’ – endeavours to provide some context to the more detailed
whatever that happens to be – is likely to result in a shortfall of analysis that will follow in later sections of this document.
supply over demand, then business as usual needs to change.
5
Urban Water Strategy
1.1 City West Water has some key features
City West Water’s service area is comprised of Melbourne’s Central Business District, adjoining inner-city areas and the western suburbs
of Melbourne (see Figure 1).
Figure 1. City West Water service area
The approach City West Water needs to take to the • is home to internationally renowned sporting venues
development of an urban water strategy must consider its
• has the greatest concentration of industrial customers in
context – City West Water’s service area:
Victoria and some of the largest single water users
• has the fastest population growth in metropolitan
• has less rainfall than other parts of Melbourne – 500mm
Melbourne – set to increase from 1 million to 2.3 million
to 650mm in Melbourne’s west compared to 650mm to
over the next 50 years, of which:
1100mm in eastern and south eastern areas.
• established areas will absorb 68% of the growth
Table 1 presents a summary of some of the key metrics for City
• greenfield development will absorb 32% of the growth1
West Water’s service area that outlines where we are now and
• includes the Melbourne CBD – a critically important where we are likely to be in 50 years time.
and nationally significant economic hub that caters to
multinational companies, major hospitals and universities
1
Based on urban growth boundary set in Plan Melbourne – see: www.planmelbourne.vic.gov.au
6
Table 1. City West Water’s service area: Where we are now and where we are likely to be in 50 years
Metric 2015-16 2065-66*
Population 1,000,000 2,300,000
Dwellings 390,000 940,000
Drinking water supplied 111 GL 156 GL
Sewage collected 92 GL 143 GL
Alternative water supplied 2.5 GL 9.7 GL
* For planning purposes we consider a range of values for each of these parameters – the values noted here represents the approximate centre of the relevant range.
1.2 There may be a shortfall of supply
over demand
Planning to manage water supply and demand and associated
infrastructure over a 50 year period is a complex exercise
because of:
• limitations in water storages
• significant variation of inflow to water storages that are
(partially) offset by capacity from the Victorian Desalination
Project
• prospectively significant variation in the rate of growth in
demand for water and wastewater services.
Storage limitations
In 2014, City West Water was granted an entitlement to 24.8%
of water on Melbourne Water’s storages and an on-going
entitlement to 24.8% of inflows of water not required for
environmental purposes. Based on these entitlements, and
current rates of potable water usage (111 GL per annum), if
Melbourne Water storages were 100% full and there were zero
inflows, these storages alone could deliver around two and a
half years of water supply.2
Variation of inflow to water storages and the
availability of desalinated water
City West Water is allocated a proportion of the water flowing
into Melbourne’s main water supply reservoirs, known as
‘entitlements’. Historically, inflows to Melbourne Water storages
have been highly variable as shown in Figure 2 (which depicts
annual inflows over the past 100 years). As inflows vary, so too
does City West Water’s entitlement.
2
Ignoring potential supplementation from the Victorian Desalination project. Melbourne Water’s storage levels as of March 2017 were around 66% of capacity, which means City West
Water currently has an entitlement in Melbourne Water’s storages to less than two years of expected potable water demand.
7
Urban Water Strategy
Figure 2. Water flowing into Melbourne’s main water supply reservoirs over the past 100 years
Source: Melbourne Water, https://www.melbournewater.com.au/waterdata/waterstorages/Pages/Inflow-over-the-years.aspx
There can be no certainty around future inflows, but it is Combining storage, catchment inflow and demand
possible that a warming climate over the next 50 years could considerations
deliver long term average inflows lower than has historically
been the case. Figure 2 annotates the clear difference between There are clearly many combinations of outcomes for storage,
the long term average inflows and the much lower average catchment inflow and demand considerations that could
experienced since the commencement of the Millennium emerge over the next 50 years – and assuming the Victorian
Drought in 1997. Desalination Project is used to capacity supplemented by a
Near term water shortages from the combination of storages maximum of 10 GL of alternative water by 2066 available as
and catchment inflows can be offset by operation of the a fit-for-purpose substitute for potable water. However, in
Victorian Desalination Project – which has a capability to deliver order to give a sense of the planning challenges ahead it is
150 GL per annum to the metropolitan Melbourne system – sufficient (for now) to present plausible best case and worst
thus potentially supplementing City West Water’s entitlements case scenarios:
by around 40 GL per annum.3 • high supply / low demand – a best case scenario in that
the shortfall of supply and demand emerges as late as
Variation of future demand for water – population possible
growth and water use efficiency
• low supply / high demand – a worst case scenario in that
City West Water’s service area is subject to particularly high the shortfall of supply and demand emerges sooner rather
rates of population growth. Our current best estimate is that than later.
over the next 50 years the residential population in our service Table 2 presents the best case and worst case scenarios for
area will have grown from just on 1 million in 2016 to more each of supply (City West Water entitlements to inflows) and
than 2.3 million by 2066. While actual population changes may demand:
differ from this best estimate (±10%), there is also a range to
consider around per capita water use: Will households become • in the high supply / low demand (best case) scenario we will
more profligate in their water use or will they embrace (further) have sufficient supplies of potable water to meet demand
water efficiency messages?4 beyond our 50 year planning horizon without having to
resort to major supply augmentation or coercive water
restrictions (supply of 146 GL and demand of 125 GL)
• in the low supply / high demand (worst case) scenario
supply is outstripped by demand in 2027-28 (supply of
125 GL and demand of 126 GL).
3
City West Water also has entitlements to water storages in the northern parts of Victoria (Goulburn System and the Murray System), which could be called on in times of critical
human need through operation of the North-South Pipeline.
4
Population projection is not an exact science. Sensitivities were applied to the latest population projections from Victoria in Future (the official Victorian Government forecast) using
high, medium and low growth scenarios from the Australian Bureau of Statistics’ analysis reflecting possible variations in rates of birth, death and migration.
8
Table 2. Potential outcomes at critical points for potable water supply-demand balance in the City West
Water service area based on alternative scenarios
2027-28 2065
HIGH SUPPLY / LOW SUPPLY / HIGH SUPPLY / LOW SUPPLY / HIGH
LOW DEMAND HIGH DEMAND LOW DEMAND DEMAND
Total potable water demand (GL per annum)* 110 126 125 204
City West Water entitlements to catchment inflows 150 125 146 90
and desalinated water (GL per annum)
(average over the preceding 5 years)
* Reduced by the amount of potable water that is not required due to it being substituted by fit-for-purpose alternative water.
1.3 Viable solutions must reflect adaptive Fit-for-purpose water for use in bathrooms, laundries, gardens,
commerce, industry and irrigation can be delivered from a
and integrated approaches range of alternative sources such as:
The combination of uncertainty in catchment inflows and • harvested stormwater
water demand means that our approach to long term • recycled wastewater.
management of water will need to be highly adaptive,
responding to conditions as they emerge. Unlike the However, before we commit to any particular ‘solution’ we
assumptions underlying our best and worst case scenarios must also note the highly capital intensive nature of some
above, catchment inflows will not follow a stable path but will approaches. If we were to make capital investments based on
likely vary as has been the case historically. Even though we fears of the worst case scenario, but the actual outcome was
may not have a ‘structural’ supply-demand balance problem, closer to a best case scenario, significant capital may have been
the possibility of a severe multi-year dry spell could create sunk into assets years earlier than required and there would still
short-term need for some creative solutions. be a need to pay for the asset(s) by raising prices for customers
above a level that was otherwise required.
Not all the required water supply needs to come from
traditional catchments and the existing Victorian Desalination The approach we take will be proactive and adaptive, checking
Project, although these will remain the source of water for for signs and confirming evidence of structural change before
drinking, cooking and personal hygiene. committing to new projects. This needs to occur in the context
of integrated water management (IWM), a collaborative
Approaches to managing the potential water supply shortfalls approach to planning that brings together all elements of the
may include: water cycle including sewage management, water supply,
• augmentation of existing supplies – more water storages stormwater management and water treatment while also
and/or additional desalination capacity considering environmental, economic and social benefits. IWM
is a widely-embraced concept but we need to think carefully
• (further) substitution of potable water with fit-for-purpose about how we make this happen – successful implementation
alternative water requires: leadership; partnership; and an understanding of the
• storage of fit-for-purpose alternative water in local aquifers value created and costs avoided.
• more intensive demand management.
9
2
What are the requirements
for an urban water strategy?
We must take account of expectations from two quite different sets of stakeholders for what an urban
water strategy needs to deliver. These stakeholder groups are:
• Our customers and the community we serve
• the Victorian Government as both shareholder and driver of water policy.
2.1 Stakeholder expectations • support mild water use restrictions in times of shortage in
preference to paying more to avoid them
Our customers deserve an assurance that the services most • prefer to focus on water use behaviour change and
important to them are being delivered in the best possible way. the development of alternative water sources from the
Our strategy for the long term management of our water and existing water cycle in preference to paying more for large
wastewater services must speak to the values of our customers. augmentation projects
In collaboration with other metropolitan Melbourne water • prefer a proactive rather than reactive approach to ensuring
corporations, City West Water conducted a program of future supplies, even if it means paying a little more now in
community and stakeholder research to inform its urban water preference to spending big for future major augmentations
strategies and the Melbourne Water’s System Strategy (MWSS)5.
The broad objectives of the research were to understand: • are looking for better (simpler) more regular
communications from water corporations with respect to
• the value customers place on water, urban water water resource management.
management and outcomes sought to support life
and liveability Water is highly valued and seen as essential to life, yet is taken
for granted. Figure 3 provides an overview of the community’s
• community expectations of water availability and priorities in water usage and what it means to them, grouped
future supplies into three categories in descending order of importance.
• community expectations of communication and
engagement.
The results of the survey pointed to some common views and
trends among a majority of respondents. The key conclusions
of the engagement exercise were that customers and the
community:
• desire sustained access to safe and affordable water services
• do not readily connect ‘water’ with ‘Melbourne’s liveability’
• expect water corporations to implement an adaptive
planning approach that is adjusted to fit the situation
5
Newgate Research undertook the customer research on behalf of the metropolitan Melbourne water corporations. There were approximately 1000 people engaged through a number
of forums, including face-to-face, online forums and online surveys. The results are statistically valid.
11Urban Water Strategy
Figure 3. Community priorities for the valuation of water
Drinking Food production/farming
Health and safety Personal hygiene and cleaning
Essential Cooking
Parks and gardens Sporting grounds
Economy and Mental and
employment physical health
Healthy waterways Community
Liveability and environments connectedness
Private swimming pools
Personal lawns
Fountains
Car washing
Discretionary
2.2 Responding to legislative and other 2.3 City West Water business strategy
obligations
Our vision is to be an exceptional service provider that
There are three separate pieces of policy and strategy puts customers first and benefits the community.8
articulation from the Victorian Government and its agencies Part of the expressed ambition for our organisation is that we
that place specific expectations on the nature and content of demonstrate a passion for community liveability and wellbeing
urban water strategies: with a drive to:
• Statement of Obligations – a formal instrument issued • care for, and where possible to enhance, the environment –
by the Minister pursuant to the Water Industry Act 1994 with an eye to the future and the challenges imposed by a
that specifies obligations of the water corporations in changing climate
performing their functions and exercising their powers.6 • be vibrant partners in the life of our community
The obligation for each of the water corporations to deliver
its own urban water strategy is supported by guidelines • anticipate community needs and to take the lead within our
regarding required strategy content. areas of influence.
• Water for Victoria – the Victorian Government’s primary Extensive knowledge of the water cycle is a key pillar in the
water policy document.7 It sets the following vision: success of our business, delivering behaviours and outcomes
consistent with:
Water is fundamental to our communities. We will manage
water to support a healthy environment, a prosperous economy • treating the liveability of Greater Melbourne as a shared
and thriving communities, now and into the future responsibility
• Melbourne Water System Strategy (MWSS) – which provides • supporting diversity of water resources to help meet the
a long-term view of water resource management taking challenges ahead
account of the challenges and opportunities across the • facilitating water efficiency as a key contributor to resource
Greater Melbourne region over the next 50 years. optimisation.
In combination, the separate policy and external strategic
directions require urban water strategies to:
• identify the best mix of measures to provide water services
in our towns and cities with an outlook from now to 50
years time
• recognise that resilient and liveable cities and towns
are fundamental to economic prosperity, social
and environmental needs, and community identity
and wellbeing.
6
www.depi.vic.gov.au/__data/assets/pdf_file/0019/365122/Statement-of-Obligations-General.pdf
7
http://delwp.vic.gov.au/water/water-for-victoria
8
City West Water’s full business strategy can be accessed at http://www.citywestwater.com.au/about_us.aspx.
1213
3
Structure of this document
The following strategy will outline the principles and priorities that City West Water will be following
– some of which are already embedded into current practice – to guide the development of specific
recommended actions.
This document is structured as follows: Under each focus area there is a discussion of:
• Part A presents a discussion of both the high level strategic • the context
approach to our task as well as an outline of the actions we • the strategic approach
will implement to deliver our strategy. Our areas of strategic • actions to give effect to our strategic intent – these
focus are split into separate discussions of: actions are also summarised in section 6 of the document.
• reliability and quality of water and wastewater services
Figure 4 provides an overview of the Part A structure and its
• community liveability and wellbeing. links to City West Water’s overall strategic vision.
Figure 4. Overview of City West Water’s Urban Water Strategy
Responding to trends in supply and demand for water
Reliability and
Areas of strategic focus
Managing and developing sources of water
quality of water
Making every drop count
and wastewater
services Managing the environmental impact of treated wastewater
Managing our investment in assets and resources
Community Partnering and leading for the benefit of the community
liveability and Engaging with the general community
wellbeing Engaging with Aboriginal communities
vision
To be an exceptional service provider that puts customers first
our
and benefits the community
• Part B provides the background and detail around some of
our current practices that is needed to provide a full context
for our determined strategy and actions.
15PART A: STRATEGIC APPROACH AND ACTIONS
4
Reliability and quality of water and
wastewater services
This section discusses the first of two areas of focus, outlining what it is that City West Water will be doing
to ensure we provide ongoing reliability and quality of water and wastewater services.
Our approach to this Urban Water Strategy addresses growth Exceptional service delivery is premised on the use of the right
in our customer base through the development of a suite technology and assets, deployed in the right way. We bring an
of infrastructure solutions that not only provide for water innovative mindset to technology selection that is adventurous
supply and sewerage infrastructure, but aim to also improve yet responsible and seek to benefit from others by adapting
the environmental sustainability, resilience and economic great solutions from across the world into our context.
performance of the water management system. Our approach However, we do not innovate merely for the sake of providing
reflects the principles of integrated water management (IWM) a point of difference. We leverage advances in technology to
and has been developed through: enhance the overall safety, security and reliability, and to reduce
the cost, of our operations.
• analysis of the interactions between the water cycle and the
urban landscape Through engaging with our stakeholders – which include
residential customers, business customers, developers,
• identification of the infrastructure required to achieve
contractors, the plumbing industry, government (state and
integration of water supply, sewage conveyance, treatment
local), community organisations and educational institutions
and disposal, flood mitigation, drainage and urban amenity
– we seek to create better and more integrated solutions that
• understanding that alternative water is often more consider the entire water cycle.
expensive to capture and/or produce (depending on water
source and application) than surface water and only some 4.1 Responding to trends in supply and
sources of alternative water are cheaper than desalinated demand for water
water
• considering the potential offered by demand management Context
– while acknowledging the substantial efforts our customers
have already made to become more efficient in their use of The long-term water supply-demand balance for City West
water. Water’s service area was prepared in collaboration with all water
Our existing IWM approach to planning for infrastructure to corporations based around Greater Melbourne (see Figure 5).
achieve multiple water cycle management outcomes will be
underpinned by seeking new partnerships. IWM is expected
to deliver significant efficiencies in designing, building and
operating water management systems.
17Urban Water Strategy
Figure 5. Long-term supply-demand balance for City West Water’s service area based on Melbourne Water’s
drinking water supply system*
High demand - Low
supply scenario
250 results in 114 GL Medium demand -
shortfall by 2065 Medium supply Low demand - High
scenario results in supply scenario
23 GL shortfall by results in no
2065 shortfall by 2065
200
Average Annual Volume (GL/yr)
150
3
1 2
100
1 Year 2027/ 28 is the earliest possibility when demand for water exceeds supply
2 Year 2044 is medium case possibility when demand for water exceeds supply
3 Year 2065 results in no shortfall of water resource
50
Water supply range due to impact of Climate Change on stream flows
Water demand range due to possible variation in population, climate change and water efficinecy assumptions
Water demand range due to possible variation in population, climate change and desired water efficinecy assumptions
0
2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065
Year beginning July
* The assessment takes into account modelling of stream flows into the reservoirs based on climate scenarios and use of water from the Victorian Desalination Project. Assessment also
reflects current Government policy with respect to the use of the North-South Pipeline (which can only be used in time of critical human need – i.e. when water storages are less than
30% as per the System Management Rules stated in our Statement of Obligations.
The demand assessment takes account of planned alternative At the other extreme, in the low supply / high demand
water supplies from City West Water local sources that would scenario, demand could outstrip our service area’s allocated
act as a fit-for-purpose substitute for drinking water and, thus, supply as early as 2027/28, resulting in a shortfall of
netted-off total drinking water demand. The supply assessment approximately 114 GL by 2065.
takes account of supplies form Melbourne’s catchment and
the Victorian Desalination Project.9 Scenarios considered Strategic approach
contemplate different outcomes for each of population growth,
efficiency of water usage and climate change (CC) impact: Due to variability and uncertainty in long-term supply and
demand, we can play a vital role in reducing the demand on
• high supply / low demand scenario assumes slow our drinking water system. We will use a balanced portfolio of
population growth, high efficiency of water usage and no options that includes demand management and diversification
climate impact, thus delivering maximum likely supply of supply sources to manage water availability.
• low supply / high demand scenario assumes fast Using an integrated approach – and by working with
population growth, low efficiency of water usage and high Melbourne Water, our customers and our stakeholders – we
climate change impact, thus delivering minimum likely can better understand the needs of the wider system and
supply. optimise investment in future augmentation of the major
Based on the collaborative assessment of supply and demand supply and distribution system. As a way of managing the
for drinking water in City West Water’s service area, in the high overall affordability of water, such an approach is consistent
supply / low demand scenario, City West Water’s service with the wishes of our customers, who would like to see
area would experience no supply shortfall until sometime incremental cost effective investments where prudent in order
after 2065. to avoid large costly future investments.
9
The Victorian Desalination Project can supply up to 150 GL per annum and is essential to supporting the base level of service objective to keep Melbourne’s water storages above the
Water Outlook ‘low action point’ (40% of the total system storage).
18City West Water will be prepared for all reasonably foreseeable • review and update every five years (with a new 50 year
population growth, water efficiency and climate change outlook) of the Urban Water Strategy and Melbourne Water
outcomes to meet our water supply security objectives. The System Strategy (first release 31 March 2017)
following strategic initiatives will be pursued:
• collaborate with Melbourne Water, DELWP and other
• participate in the development of Melbourne Water’s stakeholders on longer term water resource assessments,
Annual Operating Plan10 to maximise the yield from the Central Region Sustainable Water Strategy and broader
catchment-based bulk entitlements – the Annual Operating policy initiatives
Plan will have an important role in providing our customers
• ensure, through the Drought Preparedness Plan, that we are
with confidence that we will be able to meet their needs
proactive in our management of water resources, not just at
• maximise the beneficial use of our entitlements to surface times of critical need.11
water and desalinated water
To ensure long-term water availability that responds to
• publish an accessible form of the Annual Water Outlook variability in supply and demand, all water corporations have
each December – incorporating detailed action plans collaborated in the development of an adaptive management
for managing our portfolio of water resources over the framework that will include the above as part of an
following three years interconnected set of plans, strategies, processes and actions
(see Figure 6).
Figure 6. Adaptive management framework
Urban water planning
Melbourne Water System
Annual decision making and
Strategy Policy planning and direction
implementation
Urban Water Strategies
Water Outlook Long-term water resource assessment
Integrated water
Desalinated water order advice Central Region Sustainable Water Strategy
management forums/
Annual operating plan plans
Seasonal determinations
Seasonal watering plan
Yearly 5 yearly 10 yearly
Ongoing planning and evaluation When
Accounting and reporting, monitoring and analysis, system modelling, yield required
assessment, system optimisation
Managing extreme events
Drought Preparedness Plan
(incorporating Drought Response Plans)
Emergency Management Plans
10
Every year, Melbourne Water, in collaboration with other water corporations, prepares an Annual Operating Plan that outlines how the system will operate each year under a range
of different climate scenarios, demands and system performance criteria.
11
The Drought Preparedness Plan – which is a requirement of our Statement of Obligations and incorporates the Drought Response Plan – is an accompanying document to this
Urban Water Strategy along with measures in place to manage risk from extreme events as tabled under Appendix A. Measures in place to manage risk.
19Urban Water Strategy
ACTIONS City West Water has permanent rights (known as bulk
entitlements) to water from the catchments and the Victorian
1. Enhance City West Water’s understanding of Desalination Project at Wonthaggi. To meet the future
long-term trends in regional water resource uncertainty of supply and demand, we have an opportunity to
availability by participating in DELWP-led Central substitute drinking water with fit-for-purpose alternative water
Region Sustainable Water Strategy review and (where viable) to improve the overall resilience of the system.
Long Term Water Resource Assessment.
2. Publish an Annual Water Outlook to meet
ALTERNATIVE WATER
community expectations to be more proactive, … refers to water that does not come from the main
engaging and accessible. catchments and other sources of potable water.
3. Collaborate in a water industry working group for … is generally non-potable and can be sourced
the development and improvement of demand from recycled water, diverted stormwater, recharged
forecasting methods and tools, with an objective aquifers and sewer mining.
to support the development of consistent water
and sewage demand forecasts at hourly, daily, … can be used for garden watering, car washing,
seasonal and annual scales. laundry or toilet flushing, which means we can save
our precious potable water for the things we really
4. Review desalinated water order process in need it for – like drinking.
consultation with DELWP to ensure we optimise
the costs and benefits from the investment.
The Melbourne water system is connected to a number of
neighbouring systems, linking the sources of water used by
4.2 Managing and developing sources most Victorians. The growing interconnection of the water
of water supply system across the southern region of Victoria provides
flexibility in water management and a strong foundation for
Context the ongoing availability of water. This joined up system, or
water grid (see Figure 7), delivers enhanced water security for
Our customers are entitled to expect water to be delivered in our customers and opportunities to improve the efficiency
a manner that meets or exceeds any regulated standard for with which our overall water resources are managed through
reliability and quality. a water market, thus reducing some of the costs that would
otherwise have to be borne by our customers.
Figure 7. Water grid connections through the south-central region of Victoria
From Silver and From
Wallaby Creeks Goulburn
River
Sugarloaf
Toorourrong Pipeline
Sunbury Resevoir
Yan Yean
Resevoir Maroondah O’Shannassy
Reservoir Reservoir
Greenvale Sugarloaf
Reservoir Upper
Reservoir
Yarra
Yarra River Thomson
Reservoir
Melton Reservoir
City West Yarra Valley
Water Water
Silvan Thomson River
Reservoir
Werribee
Tarago
Noojee Water grid
Cardinia
Reservoir
Areas supplied by
Melbourne Water
Reservoir
South East
Water Tarago
River
Geelong
Warragul N
River
To Mornington Major transfer pipelines
Peninsula
Distribution connections
Siphon
Catchment storage
Operational storage
Desalination plant
Korumburra
Suburbs & Towns
Cowes
November 2015
San Remo
Victorian
Desalination
Plant
Wonthaggi Inverloch
20Strategic approach Alternative water
City West Water will be an active participant in the south- Our strategies with respect to the management of alternative
central water market trial. We will facilitate outcomes where water supplies will (in part) be influenced by the areas to which
our infrastructure is required to provide water where it is most they are to be delivered – differences in strategy arising from
needed. This south-central water market trial will assess system the nature of existing infrastructure:
flexibility and seek to demonstrate the overall resilience of the • Growth areas – City West Water is committed to supplying
interconnected system. City West Water could act as a both recycled water to service future development in the
a buyer and seller in the market. For example, in wet times Western Growth Area except to areas where distance from
City West Water could buy water from other southern grid- source may make supply uneconomic. We will review the
connected water corporations when their reservoirs are full. supply and demand for alternative water and deliver fit-for-
Conversely, in dry times, City West Water could sell its own purpose supplies where the value to the community and
water allocation or on-sell water produced by the Victorian environment exceeds the costs.
Desalination Project to other regional urban corporations
whose need may be greater due to drier conditions. • Established areas – City West Water will focus on major
redevelopments, which offer significant opportunities for
As our water supply mix becomes more diverse through further delivering alternative water as existing infrastructure is
uptake of alternative water, we will explore ways to improve our either refurbished or replaced (e.g. upgrading traditional
water resource assessment methodologies through improved technology; introducing stormwater harvesting; introducing
data and modelling. sewer mining).
All water supplies will be managed to ensure they meet We will also explore the potential for aquifer storage
appropriate standards for quality – that is, be fit-for-purpose. and recovery to cost effectively support the supply of
alternative water.
Potable water
With respect to supplies of potable water, City West Water will ACTIONS
maximise the value our customers obtain from our portfolio of
water holdings. This will be achieved by: 7. Strive to deliver 9.7 GL per year of alternative
water by 2065 – in line with current plans for
• maintaining priority on the delivery of high quality growth areas (including existing 2.5 GL per year
drinking water to reflect public health considerations and supply as of 2015/16).
community expectations
City West Water’s aim is to explore opportunities
• being proactive in the collaborative review administrative in established areas which have a potential to
arrangements such as water system management rules and substitute 6 to 8 GL per year of drinking water.
accounting processes
8. Review City West Water’s Integrated Water
• optimising the management of our allocation of Northern Management Strategy to ensure alignment with
Victorian water within the prevailing policy setting, which UWS.
may include selling excess water holdings
9. Develop a prototype industry based water
• participating in development of local market trials and resource assessment model to provide integrated
investigating potential alternative policy settings for use of view of our future supply and demand balance –
entitlements in Northern Victoria water holdings e.g. eWater Source.
• reviewing the principles supporting desalinated water order
advice to ensure customers obtain maximum value from 4.3 Making every drop count
the Victorian Desalination Project in collaboration with other
water corporations
Context
• collaborating with other water corporations to assess the
need for augmentation of assets to deliver supplies of bulk We all have a role in responsible water use. By using water
water. wisely and minimising water wastage we can help to
secure water supplies and create greener and more liveable
ACTIONS communities for now and into the future.
Figure 8 depicts changes in water use in the City West Water
5. Support DELWP in the south central market service area by both residential and non-residential customers
trial and the development of the grid oversight over the period 2004/05 to 2015/16. It is clear that there was
function. substantial effort on the part of both residential and non-
6. Evaluate long-term water supply options that residential customers to be more efficient in their water use as
could supply water to Melbourne and the the Millennium Drought took hold. We came a long way and
surrounding region, taking into consideration many of the savings produced up to 2010/11 have become
community preferences. embedded through the adoption of new behaviours, more
efficient appliances and pricing reforms. However, after the
drought ended in 2010/11, and water restrictions were relaxed,
there has been some bounce back in water usage.
21Urban Water Strategy
Figure 8. Residential and non-residential water use in the City West Water service area
Residential water use Non-residential water use
(litres per capita per day) (kL per customer per day)
250
4.5
4.0
200
3.5
150 3.0
2.5
100 2.0
1.5
50 1.0
0.5
0
0.0
Figure 9. Bulk water purchases by City West Water
120
100
GL per annum
80
60
40
20
0
As a consequence of the post-drought bounce back in water
usage and significant population growth, bulk water purchases Working towards the elimination of inefficient water use
to service the needs of City West Water customers (see Figure
As indicated in section 4.1 and Figure 5, were the high supply
9) are now higher than they were in 2004/05.
/ low demand scenario to play out, we could defer significant
Given the pressures on the supply-demand balance for water system upgrades that would otherwise be required to
noted in section 4.1, future circumstances may well require provide additional water. Although we can’t directly influence
further changes to water usage practices if we are to avoid population growth and climate variability, we can influence
involuntary restrictions on water use. demand through community education to encourage better
water use habits and uptake of water efficient appliances. If
Strategic approach necessary, water restrictions can also be applied.
When we asked the community during the development of
There are two aspects to making every drop count:
this strategy, more than 60% of people felt strongly that some
• conscious effort or action on the part of customers to form of mandatory water restrictions should be implemented
ensure efficient water use in the future as a means of managing droughts. However, we
also learned that severe water restrictions can impact on the
• minimising water losses (non-revenue water) – primarily
liveability and economy of our region. Therefore in trying to
leakage or theft.
manage the supply-demand balance at least community cost,
Greater awareness of water usage practices and taking we will continue to implement water efficiency programs and
measures to address inefficiency and wastage can help to improve our understanding of their relative costs and benefits.
preserve a valuable resource for future need (enhancing
community liveability) and to produce equivalent or better
outcomes for customers at lower cost.
22Voluntary water efficiency programs that do not come with 11. Enhance the metrics to identify target behaviours
express usage restrictions, such as Target 155, can be effective and report consumption through more robust
means of modifying customer behaviour. However, we need to classification systems that facilitate focusing
remain innovative in our approach as water programs that were on the industry sectors where there is greatest
very effective during the Millennium Drought may not have as opportunity to improve water efficiency.
significant an impact if deployed in the future. We will continue
12. Commit to supporting the efficient use of water
to refine the programs we sponsor in order to maximise their
across the community. By 2022, City West Water is
effectiveness.
forecasting demands of:
Our strategy will be to: • 230 litres per person per day for total
• educate, support and assist customers to sustain water water use across Melbourne (includes both
efficient practices, highlighting the value of water and its residential and non-residential use)
finite nature – we will tailor specific / targeted programs • 150 litres per person per day for residential
leveraging from our understanding of water usage only water use.
segments12
City West Water will publish its performance and
• restore our customers’ commitment to water efficiency actions in the Annual Water Outlook.
• ensure water efficiency programs are accessible to every
business customer and to help them adopt industry based Minimising water losses
best practice13 In parallel with our efforts to ensure our customers use water
• maintain an awareness of new technologies,14 approaches wisely, we accept our own responsibility to minimise the loss
and innovations in water efficiency and improve our of water through the network and to effectively manage the
understanding of opportunities to save water water resources that are used in the community but do not
attract a charge. Collectively, this water is referred to as “non-
• understand the true cost of water restrictions to the revenue water”.
community and using that understanding to inform supply
and demand decisions15 We will invest in non-revenue water savings measures where
the benefits of doing so outweigh the costs. To aid our
• support permanent water use rules to prevent return to assessments we will ensure we have an accurate understanding
inefficient water use practices16 of the size of components of non-revenue water, supported by:
• continually evaluate the effectiveness of water efficiency • data reconciling from bulk meters
programs and interventions and implementing them where
the benefits outweigh the costs. • effective site metering and auditing
• meter accuracy testing and replacement programs
Water loss minimisation will be further aided by undertaking (in
ACTIONS a timely manner):
• targeted asset maintenance programs and renewals
10. Support research directions emerging from Water
for Victoria, including a study into the economic • targeted investment in digital metering.17
costs of water restrictions. The objective is to
build a shared understanding of the following
complex considerations of water restrictions:
• potential liveability impacts ACTIONS
• economic costs
13. Deliver initiative for effective management of
• community perspectives non-revenue water and manage water losses to
• water savings. an economic level.
12
See http://www.citywestwater.com.au/residents/water_saving_tips.aspx.
13
See: https://www.citywestwater.com.au/documents/best_practice_guidelines.pdf
14
For example, waterless appliances and fixtures, efficient garden watering technologies, ultra-low-flow toilets, urine diverting toilets and composting toilets.
15
Water for Victoria proposes that: ‘water corporations, local government, catchment management authorities and community leaders will work together to enhance public space
through integrated water management in our existing and new urban environments. In part this will be achieved by building a shared understanding of the cost of water restrictions
to the community and community expectations about restrictions, and using this to inform water supply and demand management decisions’ (Water for Victoria, p88).DELWP is
currently leading research into the economic effect of water restrictions.
16
See: http://www.citywestwater.com.au/residents/permanent_water_use_rules.aspx.
17
City West Water, South East Water and Yarra Valley Water are working together to explore the value of digital water metering. As part of the Digital Metering Joint Program, we
are working towards developing business cases in the first half of 2017. Digital metering will only proceed if the business cases demonstrate that the program can deliver value to our
customers and the broader community.
23Urban Water Strategy
4.4 Managing the environmental impact Plant will also facilitate better downstream environmental
outcomes.
of treated wastewater
City West Water will seek to make the most of our investments
Context at treatment plants and allow beneficial use of recycled water
and bio-solids by:
In order to protect human health and the environment, it • customer education and engagement:
is important that the quality of wastewater is managed to a • encouraging cost-effective cleaner on-site production
standard that keeps harmful contaminants at satisfactory levels. activities by customers
Wastewater is collected and transferred through our pipe • adopting smarter and less onerous trade waste
networks, treated and subsequently discharged to Port Phillip. requirements without compromising risk management
A proportion of this water is re-used for irrigation and fit-for- • implementing policies aimed to ensure the sewerage
purpose use through purple pipes in new developments. system is only accepting waste that can be treated and
Discharge of wastewater from treatment plants is a significant does not significantly hinder either our ability to re-use
contributor to our environmental footprint. We can optimise treated effluent or opportunities for ‘waste to resource’
wastewater treatment to influence the quality of this discharge recovery.
to Port Phillip in two key ways:
• better understanding the quantity and quality of what
• understanding and influencing what goes into the sewers is initially disposed of by customers into the sewerage
• the manner in which we treat wastewater when it is system through:
received at treatment plants. • improvements to data capture and forecasting
City West Water owns and operates the Altona Treatment • improved waste tracking of sludge and greasy waste
Plant (ATP), treating around 6% of all the sewage we collect. from source in order to prevent illegal dumping into the
The remaining sewage we collect is transferred to Melbourne sewer network
Water’s Western Treatment Plant (WTP). City West Water • maintaining engagement with industry groups to keep
contributes approximately half the sewage volume going to track of changing technologies to ensure we invest in
WTP. technologies which are advanced, proven and cost effective
– this will allow us to identify opportunities for resource
Strategic approach
recovery from wastewater and sludge by:
The quality of sewage collected and transferred to various • exploring the viability of options for converting waste
treatment plants affects the ability to re-use treated sewage to energy
and meet compliance requirements on discharge to • exploring the viability of options for sewer mining and
Port Phillip. recycled water schemes
City West Water will engage in continuous improvement in • exploring the viability of options for sewer heat recovery.
assessment and management of sewage quantity and quality City West Water intends to maintain ATP as a localised
through: improved data and forecasting; and encouraging our treatment plant for mainly domestic sewage. This will allow
customers to engage in cleaner on-site production activities. us to: maintain the simplicity of on-site treatment processes;
This will allow us to make the most of our investments at and maintain the supply of recycled water to both industrial
treatments plants and allow beneficial use of recycled water customers and public open spaces. Remaining domestic and
and bio-solids. Collaboration with Melbourne Water to better all commercial / industrial sewage will be directed to WTP,
understand and influence the nature of wastewater transmitted where large scale treatment of complex contaminants is more
through our system to Melbourne Water’s Western Treatment cost effective.
24ACTIONS City West Water will ensure investment in water and
wastewater network and other infrastructure takes account of
14. Update projections for sewage collection based long term outcomes for:
on the outcomes from the collaborative Demand • public health
Forecasting and Capacity Planning Improvement
Project and develop an ongoing improvement • environmental protection – which includes working towards
plan for forecasting and capacity planning. net-zero emissions from our own operations
15. Collaborate with Melbourne Water, Yarra • climate change mitigation, adaptation and resilience
Valley Water and South East Water to develop • overall service affordability for our customers, which flows
Melbourne’s sewerage strategy. from customer-centric decision making processes and
overall operational efficiency.
4.5 Managing our investment in assets
Decision making processes
and resources18
To deliver the best possible value to our customers and to
Context maximise the affordability of our services, implementation
of substantive change (new projects or amended practices)
City West Water manages a network of more than 9000km will be supported by robust business cases and appropriate
of water supply and sewer mains. Augmenting water and empowerment that allows informed decision making.
wastewater networks and other infrastructure can be a very City West Water will ensure it has robust investment evaluation
costly exercise and should only be pursued when other non- frameworks and business cases that use relevant data and
augmentation options have been shown to be less effective insightful analysis to fairly and accurately assess all reasonable
(and more costly) over the long term in meeting the needs of options and incorporate consideration of the long-term costs
the community. and benefits to customers.
Strategic approach
City West Water will prudently manage its existing infrastructure ACTIONS
to provide reliable water supply and sewage management
services at the least community cost. Along with potential 16. The water industry will consider all of the benefits
augmentations, we will consider other options for action that of alternative water projects when developing
could maintain reliability of supply, yet avoid (or mitigate/ business cases based on the scenarios from the
delay) the need to augment infrastructure. We will pursue urban water strategies and will work to ensure
opportunities to keep demand for water low through a alignment of implementation across the industry
balanced portfolio of options such as education campaigns and 17. The industry will quantify further benefits on
investments in water efficiency and localised alternative water liveability outcomes and health benefits and
supplies. Optimising the efficiency of delivery mechanisms can review the principles of recycled water and
help avoid, or delay the need for, expensive augmentations. stormwater pricing for inclusion in business
cases.
18
This section focusses only on City West Water controlled assets and resources. Optimisation of assets that are controlled by others (e.g. the Victorian Desalination Project and
Melbourne Water systems) are considered in the context of section 5.1 Partnering and leading for the benefit of the community.
25Urban Water Strategy
Operational efficiency and asset lifecycles Resilience to a changing climate
City West Water will maintain the affordability of services for our City West Water has a vision for climate resilience to become a
customers by ensuring the efficient and effective, use of assets leader in climate adaptation that understands and proactively
we own and operate by: responds to the impacts of climate change on our services,
customers and the community.
• incrementally growing the assets base (as prudent) to
service the future growth City West Water will develop a holistic approach to achieving
net-zero emissions and working with stakeholders to reduce
• seeking greater efficiencies from assets in established areas
the emissions from our operations. This approach will consider:
where renewal of old infrastructure might otherwise be
required • progressive emissions reductions targets to become
net-zero by 203020
• (where prudent) de-commissioning assets that have
reached the end of their economic life19 • incorporating climatic variability and its possible
impacts in all aspects of our strategic planning and
• extending the life and effectiveness of existing water and
infrastructure delivery.
sewer network assets through:
• exploring smarter (real-time) network monitoring and
response systems
ACTIONS
• incorporating weather prediction into integrated water 21. Develop a Climate Resilience Strategy by June
management solutions 2017. This strategy will include commitments to
• improved understanding and managing contaminants of undertake the following:
concern that reduce asset life • proactively reducing the risks climate change
• exploring the value of digital metering poses to our customers, assets and staff
• educating our customers on climate change
• monitoring and responding to our energy use profile –
and engaging with them to deliver services
we will identify opportunities to invest further to reduce
and infrastructure that take account of
electricity consumption through smart technologies.
customer expectations
• integrating future climate change scenarios
into our planning
ACTIONS • establishing a monitoring and evaluation
process for climate resilience.
18. Work with Melbourne Water through regular
review of average and peak demand, seeking 22. Reduce our total carbon emissions by 80%
efficiencies by avoiding (where prudent) capital (compared to our baseline) by 1 July 2025 and
infrastructure upgrades for the water and sewer adopt a leading pathway to achieve net-zero
network. emissions.
19. Commit to innovation to deliver smart and
efficient services and optimise existing
investment in assets and management systems.
Work towards determining the viability of
upgrading our meter fleet to digital meters.
20. Commit to exploring opportunities to determine
real time monitoring of our network and
customers’ usage of water.
19
If an asset no longer delivers (net) value to the community, it has reached the end of its ‘economic life’. Due to changing circumstances, the end of ‘economic life’ might occur prior to
an asset being fully depreciated or reaching the end of its ‘technical life’ (the period for which it was designed to deliver services).
20
Water for Victoria outlines an expectation that the four metropolitan Melbourne water corporations will examine an early path to achieve net-zero emissions by 2030.
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