The Arden Precinct in North Melbourne is undergoing major urban renewal. Located just two kilometres from Melbourne’s CBD, Arden is being transformed into a vibrant new neighbourhood that will support housing, jobs and transport connections for around 20,000 people by 2051.
Background
Arden’s landscape has been shaped by its natural history. Once part of the West Melbourne Swamp and influenced by the Moonee Ponds Creek floodplain, the area has long experienced flooding challenges.
As Arden grows, effective flood management is essential to protect future residents, safeguard property and support sustainable development in a changing climate. In some parts of the precinct, development may also be subject to restrictive planning controls unless key drainage infrastructure is upgraded to safely enable future development. However, it is not possible to completely eliminate flood risk, as such development in some parts of the precinct may continue to be constrained.
In 2021, Melbourne Water engaged Engeny to prepare the draft Arden-Macaulay Precinct Flood Management Strategy, developed alongside planning for the Arden Structure Plan 2022. At the same time, the Urban Renewal Cost Recovery Scheme (URCRS) was also being explored as a way to help fund major drainage and flood mitigation infrastructure across Melbourne’s urban renewal precincts.
The Victorian Planning Authority’s Arden Structure Plan was approved in 2022 through Planning Scheme Amendment C407melb. However, the amendment did not include the referral mechanisms needed to implement the URCRS funding model.
Since then, Melbourne Water has worked closely with the Department of Transport and Planning and the City of Melbourne to identify alternative ways to secure funding for the essential flood mitigation infrastructure needed to support urban renewal in this area.
Development Contributions Plan (DCP) Planning Scheme Amendment (PSA)
To ensure development can proceed safely and sustainably, an interim Development Contributions Plan Overlay (DCP04) has been approved by the Minister for Planning via Planning Scheme Amendment C489melb (approved on 28 May 2026). The overlay will apply on an interim bases until it is replaced by a permanent Development Contributions Plan via a subsequent planning scheme amendment.
DCP04 requires new development within the Arden Precinct to contribute to the cost of key flood mitigation infrastructure. This ensures growth is supported by the drainage and flood management upgrades necessary to reduce risk across the precinct.
What the contributions will help deliver
Funds collected through DCPO4 will support projects identified in the Melbourne Water Arden-Macaulay Precinct Flood Management Strategy, August 2021, which is currently being reviewed and updated. The future permanent DCP will be based on the updated concept design, including:
- Raised and extended levees for Moonee Ponds Creek
- Creating above ground flood storages (retarding basins)
- Upgrading pump stations within the Arden-Macaulay Precinct
Who is responsible for delivering the works?
The delivery of these projects will be shared across several organisations, including:
- Melbourne Water
- Department of Transport and Planning
- Development Victoria
- City of Melbourne
As the floodplain management authority for the region, Melbourne Water will continue to provide flood information and specialist advice and lead ongoing refinement of the flood management strategy over time to ensure the flood and drainage infrastructure meets the needs of a growing community.
Next steps
Melbourne Water continues to work with the Department of Transport and Planning and the City of Melbourne to establish a permanent funding mechanism for flood mitigation infrastructure across both the Arden and Macaulay precincts.
We will keep the community informed as this work progresses and as future funding arrangements are finalised.
More information and contact details
For more information, visit Engage Victoria or call 131722.
