Bulk water

We supply, treat and transfer drinking water to Melbourne’s retail water companies and other non-metropolitan water businesses.

Our bulk water customers include:

  • City West Water
  • South East Water
  • Yarra Valley Water
  • Western Water
  • Gippsland Water
  • Barwon Water
  • South Gippsland Water
  • Westernport Water

Bulk charges comprise fixed monthly availability prices from three separate sources of water (headworks) and a single variable usage price. There is also a variable usage price for the 125GL water order from the Victorian Desalination Plant.

The headworks prices reflect Victorian Government policy changes to the Bulk Water Entitlement Framework that came into effect 1 July 2016. Headworks prices are based on each retailers entitlements share of the Greater Yarra System–Thomson River, North South Pipeline and Victorian Desalination Plant. These prices provide a clear cost signal associated with holding, buying or selling water entitlements.

Gippsland Water prices are based solely on their use of the Tarago Reservoir.

Prices from 1 July 2020 to 30 June 2021 

Retailer Headworks price ($/month)
Greater Yarra System -Thomson River
Headworks price ($/month)
North South Pipeline
Headworks price ($/month)
Victorian Desalination Plant
Usage price ($ /ML)
City West Water 4,615,233.38 1,022,687.50 11,367,625.51 254.24
South East Water 6,230,717.60 1,022,687.50 15,346,509.76 254.24
Yarra Valley Water 6,638,334.08 1,022,687.50 16,350,489.72 254.24
Western Water 551,241.25     254.24
Barwon Water 561,228.86     254.24
South Gippsland Water 50,341.66     254.24
Westernport Water 50,341.66     254.24

Gippsland Water 

Headworks ($/ML) ​Transfer ($/month)
400.15 ​1,337.74

These prices were reviewed through a public process, where the Essential Services Commission:

  • completed extensive analysis of our 2016 Water Plan, which sets out the expected costs to deliver planned capital works programs, service standards and forecast volumes for each prescribed service

  • reviewed capital expenditure, operating expenditure and forecast demand

  • consulted with stakeholders, including a review of submissions made by interested parties

The 2016 Water Price Review covers a five year regulatory period from 1 July 2016 to 30 June 2021. The prices set through the review reflect the efficient cost of providing water services.

Bulk water agreements

Last updated:
12 August 2020