Bulk recycled water

We provide recycled water from our two sewage treatment plants to Melbourne’s retail water businesses and some regional water authorities, as well as a private company. These companies then supply recycled water directly to users.

Recycled water customers

Our recycled water customers include:

  • Greater Western Water (formerly City West Water)
  • South East Water
  • Southern Rural Water.

Pricing principles for recycled water

According to our pricing principles recycled water prices should:

  • consider the price of any substitutes and customers’ willingness to pay

  • cover the full cost of providing the service (with the exception of services related to specified obligations or maintaining balance of supply and demand)

  • include a variable component.

Where we do not propose to fully recover the costs associated with recycled water, we must demonstrate to the Essential Services Commission that:

  • we have assessed the costs and benefits of pursuing the recycled water project

  • we have clearly identified the basis on which any revenue shortfall is to be recovered.

If the revenue shortfall is to be recovered from non-recycled water customers, we must demonstrate that either:

  • the project is required under the Statement of Obligations which applies to Melbourne Water, or pursuant to other government policies that apply to Melbourne Water

  • there has been consultation with the affected customers about their willingness to pay for the benefits of increased recycling​.

Last updated:
7 December 2022