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Sugarloaf Pipeline Project - Facts and Common Questions

General questions

How long is the proposed pipeline?

Approximately 70 kilometres. The pipeline will provide a link between the Goulburn River and Sugarloaf Reservoir.

How long will it take to build the pipeline?

The project is expected to take about 2½ years and should be completed in 2010.

How much water will the pipeline transfer?

The pipeline will enable a maximum of 75 billion litres of water savings to be transferred to Melbourne each year.

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Where is the water coming from?

The water transferred via the pipeline will be sourced from savings achieved through the modernisation of irrigation infrastructure in the Goulburn-Murray Irrigation District.

In the first stage of the project, this program of irrigation modernisation, known as the Food Bowl Modernisation Project, is anticipated to capture 225 billion litres of saved water annually that is currently lost due to system inefficiencies caused by open channels in the Goulburn-Murray Irrigation District. This water will be shared equally between irrigators, the environment and Melbourne.

What is the preferred pipeline route?

The preferred route for the Sugarloaf pipeline travels south from the Goulburn River near Yea, along the Melba Highway corridor to the Sugarloaf Reservoir, west of Yarra Glen. The route includes private farmland and public land.

While a general pipeline route has been identified, the specific route alignment has not been finalised. This will be done in close consultation with affected landowners and local councils as part of the detailed design process, which Melbourne Water is undertaking now.

In most cases, there will be a requirement to acquire an easement rather than acquire land. The compensation for this easement will be determined by an independent valuer in consultation with the land owner.

Why is the Melba Highway route the preferred route?

  • It is approximately 20 kilometres shorter in length than the next preferred option;
  • It has the lowest capital cost in terms of the cost of construction of the pipeline and also the cost of the associated water treatment plant works;
  • It has fewer identified environmental and planning impacts;
  • The Melba Highway route is the lowest point over the Great Dividing Range thus reducing ongoing energy costs of pumping.

What studies will be undertaken as part of the detailed design process?

Thorough environmental, heritage and planning studies will be carried out to support a decision on a finalised route for the pipeline.

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Landowner questions

How will private land be affected?

Melbourne Water will need to access private land to build the pipeline and to create an easement to protect the pipeline. The easement is necessary so that the pipeline can be accessed if required in the future for maintenance. Its location will be registered on titles.

How wide will the pipeline easement on private land be?

Construction will require a strip of land approximately 25-30 metres wide. The easement will be approximately 30 metres wide (or possibly wider in steep terrain), however, the final easement registered on property will be 10-15 metres wide. The only condition of the easement will be that you cannot build on top of it.

How deep will the pipeline be dug into the ground?

As a rule, it will be buried a minimum of about 1 metre deep. Crossing of major roads or rivers could alter its depth depending on construction measures chosen.

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Will landowner's land be acquired? Or will an easement be put across it?

In most cases, there will be a requirement to register an easement rather than purchase a strip of land. Consultation will be undertaken with affected landowners to agree the compensation payment related to the registration of easements.

Melbourne Water can compulsorily acquire easements and the process for this is outlined in the Land Acquisition and Compensation Act 1986.

Does Melbourne Water have to pay landowners to put an easement on their land?

Compensation for the easement and rental for the workspace occupied during construction will be assessed by an independent certified practising valuer.

Melbourne Water will pay compensation to landowners including costs associated with the creation of the easement and restoration of land within the easement.

Will the easement impact what owners can and can't do on their land?

The easement will restrict the construction of significant buildings over the pipeline but is unlikely to affect uses of that land such as grazing. The aim of the consultation process with affected landowners is to minimise disruption to the current and future use of their land as a result of the pipeline.

The only exception to this is where above ground fittings will be required at some locations and these will require protection from damage. No rezoning of land will be required for construction of the pipeline.

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Will the pipeline be above or below ground?

The vast majority of the pipeline will be underground, particularly on privately owned land. The possible exception to this may be where the pipeline negotiates river or creek crossings.

What kind of impacts to my everyday business can I expect from the project?

Different land uses may be impacted by different components of the project. Melbourne Water and the Sugarloaf Pipeline Team will continue to work with individual landowners and occupiers to ensure that various land uses are accommodated as best as possible.

If a property is identified as being along the final pipeline alignment, the following potential impacts may occur:

  • construction noise during working hours;
  • potential changes to local traffic patterns; and
  • other potential impacts such as dust emissions and occasional vibration.

Impacts will vary depending on the size of each property. Construction will take at least 7-10 days depending on the rate of construction work, followed by a period of reinstatement works (i.e. revegetation, levelling) which may take up to six weeks.

All properties will be surveyed prior to works commencing to ensure that they are reinstated to as close to their original condition as possible. It may take some months for revegetation to be successfully established.

All construction work is required to comply with relevant EPA guidelines. This includes consideration of issues such as noise, hours of works and dust. Pump station operational noise must also comply with EPA guidelines.

What will my property look like after you install the pipeline?

Land will be reinstated to as close to its original condition as possible. Melbourne Water is required to do this by the Water Act 1989. We plan to ensure the project is as unobtrusive as possible in all aspects, including permanent impacts on the landscape.

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What types of impacts can I expect to be compensated for?

Property owners can expect to be compensated for impacts to property, such as land acquired or fundamentally changed by the project, or other impacts as assessed and determined by the Land Acquisition and Compensation Act.

An affected landowner can expect to receive financial compensation for:

  • The lessening of value of land affected by the easement that is required to access and maintain the pipeline;
  • Any devaluation of the balance of your property which may occur as a result of the pipeline project;
  • The direct impacts to your property during construction and until rehabilitation of the construction area is completed; and
  • The indirect impacts to your property from construction (such as disruption or loss of agricultural production within the construction corridor).

In determining the amount by which a property might be devalued, the valuer will take into account:

  • The difference between the unencumbered land value (i.e. the value of the land prior to the easement) and the land value after it is encumbered by an easement;
  • The position of the pipeline/easement relative to your house or other structures, or relative to any subdivision possible under the planning scheme controls applicable to your land;
  • Removal of any established trees and/or the inability to plant trees or other long term crops on the easement; and
  • Direct financial loss or allowance for disturbance during the period of construction. This item involves rental for the easement and other workspace land, loss of grazing or other use/income for the period of reestablishment.

The valuer will not make a blind assessment of a property. He or she will meet with each landowner so that they can voice concerns about particular impacts that it is felt the pipeline or easement may have on the property.

If an easement is put on my property, what restrictions may be placed on my property?

The pipeline will be constructed almost exclusively underground and there will be a requirement to register an easement over the pipe to protect it. The Water Act provides the ability for an asset owner to enter property to inspect and maintain an asset. An easement will impose a requirement that permanent structures cannot be built within the pipeline easement without approval from Melbourne Water. This also protects landowners/occupiers from inadvertently constructing too close to the pipeline.

Will the pipeline be fenced off?

During construction, part of the pipeline corridor will be fenced off. This is to ensure stock and people do not enter the construction zone and to minimise safety issues. The final pipeline easement, however, is not intended to be fenced and the land will be able to used, in most parts, for its previous purpose. The pump station and balancing storage and associated infrastructure will be fenced.

Will you maintain any access roads through my property to get to the pipeline?

Clear access will need to be maintained from the existing road network to the pipeline, as well as a clear pathway directly above the pipeline in case access arrangements are required for maintenance.

Management of access roads will be subject to agreement with landowners/occupiers on a case by case basis.

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Environmental Effects Statement (EES) Referral questions

Also see:

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Downloads - common questions and fact sheets

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Contact us

For more information about the Sugarloaf Pipeline Project:
Call toll free - 1800 453 753 or contact us online.

For more information about the Food Bowl Modernisation Project:
Contact the Department of Sustainability and Environment Call Centre -136 186

For more information on The Next Stage of the Government's Water Plan:
Visit Our Water, Our Future
View the 12 month progress report