Melbourne to lock in lowest capital city water bills
Melbourne Water is inviting Melbournians to have their say on its prices regarding how best to invest in its water system while supporting Melbourne families by avoiding price rises in 2026.
Melbourne Water will also continue to create lasting value for Melbournians while maintaining the lowest water bills of any Australian capital city under a proposal for modest price rises between the 2026-31 price period.
Every five years, the State’s independent economic regulator, the Essential Services Commission, reviews all water corporation’s proposed services and prices to ensure they're fair.
With Melbourne Water’s next pricing period due to begin in 2026, Melbourne Water is developing a plan for the services and investment that will secure Melbourne's living standards and keep bills as low as possible.
Melbourne Water’s proposal ensures that Melbourne’s residents and businesses can continue to rely on world-class water, drainage and sewerage services amid population growth and climate change impacts.
The impact of Melbourne Water’s proposed investments would see no price rise above inflation in year one, and a modest price increase of up to 2.3% per year above inflation over the following four years, translating to an average rise in household bills of around 50c each week.
This is in contrast to other sectors and some Australian capital cities that are grappling with price increases of up to 50% over five years.
“We have heard our customers. They have told us that we must provide clean, safe and reliable water services where they are needed today and invest to keep up with Melbourne’s growth,” said Melbourne Water Managing Director, Dr Nerina Di Lorenzo.
“Water is essential for every part of our life, our environment and our economy. Through careful management of water systems and waterways, Melbourne Water will actively support the creation of new housing, drive business growth, and help to shape places where people want to live and work.
“Our customers have told us that our job is to maintain Melbourne’s precious way of life and to help build our shared future by managing flood risk, supporting appropriate development, and protecting green spaces.
“Melbourne Water will continue to provide the world-class water and services that Melbournians can trust. You can turn on your tap and flush your toilet, knowing everything will function as it should.
“We’re balancing the need for important investments and keeping prices low for our customers.”
The Melbourne Water price proposal will continue to be shaped by extensive in-depth customer and community engagement, which showed support for making prudent and careful investments while not exceeding a price increase of $26 annually.
Melbourne Water is now entering a public engagement period on this proposal. This means all Melbournians are invited to have their say.
Thriving Communities Australia CEO Ciara Stirling encouraged people, especially those with lived experience of vulnerability — to have their say and help shape the decisions that affect them.
“Thriving Communities Australia is committed to ensuring everyone has fair and equitable access to essential services. We are pleased to see Melbourne Water engaging with the community to consult on its future investments and price impacts, and proposing to expand support for people experiencing vulnerability.”
The proposed price increase will fund critical investments from 2026 to 2031, including:
- $2.0 billion to continue to provide safe, clean drinking water, service our growing region, renew aging assets, and deliver essential dam safety works.
- $3.2 billion in our sewerage system to increase capacity, minimise sewer spills, renew aging assets, and meet environmental and health standards while keeping up with higher usage.
- $1.6 billion to manage flood risks, including maintaining and renewing drains and drainage assets (including developer-delivered assets), increasing flood awareness, keeping our region’s flood maps refreshed, and completing flood modelling.
With Melbourne’s population expected to exceed six million by 2030, these investments aim to enhance access to reliable water and sewerage services, enhance flood and drainage management, support environmental stewardship, and integrating Traditional Owner values into water management practices.
“We recognise the significance of our responsibility to support Melbourne’s way of life, not only to provide essential services but also to promote environmental sustainability and community health,” said Dr Di Lorenzo.
“I encourage Melbournians to read our short community proposal and have their say on our prices and investments. Your voice matters in shaping the future of Melbourne. This is your opportunity to have your say on our services and prices.”
“Together with our customers, we will build on our proven expertise to ensure that our city and residents have access to clean, reliable, and affordable water services for decades to come.”
Visit the Price Submission website to learn more and participate: https://letstalk.melbournewater.com.au/price-submission
Media contact:
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