Water infrastructure – feasibility studies
Water Infrastructure – feasibility studies
The Australian Government invests in water infrastructure projects through its National Water Infrastructure Fund (NWIF). It invests in projects to improve water security, quality and availability. It provides support for infrastructure such as dams, weirs, pipelines, water recycling and treatment plants and water distribution infrastructure. Before 2020, the NWGF was called the National Water Infrastructure Development Fund (NWIDF).
Projects can be for town water supplies or agricultural and industrial sectors. Town, or urban water funding focusses on regional, remote, or First Nations communities to provide safe, reliable drinking water. Funding is available for the development of business cases, through to project construction.
An associated program is the National Water Grid Fund Science Program for research projects that can support climate resilience, emerging water security technology, and sustainable development of water resources.
Accessing the fund
The Department of Regional Development, Manufacturing and Water leads the consideration, coordination and development of Queensland's urban, First Nations and bulk water infrastructure funding proposals. The Queensland Government expects project owners to contribute towards the cost of the project.
We can help you access the program by:
- working with you to see if your project is eligible and a priority for funding
- drafting your project proposal with you for consideration by the Queensland Government
- for projects supported by the Queensland Government, submitting an application to the National Water Grid for assessment.
If your application is successful, we will work with you to set up project level governance, agreements and communications.
Contact us by email urbanfunding@rdmw.qld.gov.au for more information, or to see whether your project is eligible.
How studies are used
Proponents and interested parties can use the feasibility studies to determine:
- the viability of the proposals
- whether further investigations are required
- whether it is appropriate to progress them at this time.
The information will assist our consideration of potential priority water needs and options across Queensland for new bulk water supply infrastructure and will be used to update the Queensland bulk water opportunities statement. For projects that are located in areas that are the subject of a Regional Water Assessment, the information developed will also inform the respective assessment and its recommendations.
Bulk water feasibility studies
Since 2015 more than 20 feasibility studies and business cases have progressed with support from the NWGF.
They help the Queensland Government prioritise its investment in water infrastructure through projects like the Regional Water Assessments and the Urban Water Risk Assessment.
These are the feasibility studies for Queensland projects that have been funded by the NWGF.
Undertaken by SunWater Limited.
The study investigated the upgrade of the existing Bundaberg Water Supply Scheme, including channels and pipelines to increase distribution from Paradise Dam.
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Undertaken by the Department of State Development, Manufacturing, Infrastructure and Planning (DSDMIP).
This study is a preliminary investigation into raising the dam wall, looking at estimated demand for new water entitlements in the region and potential environmental impacts.
Since this study was completed, discussions between SunWater and potential water customers have indicated the potential for greater water demand in the short to medium term than noted in the study.
As a result, SunWater is now preparing a preliminary business case to ensure the right strategy is in place for the long-term water needs of the region.
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Undertaken by SunWater Limited.
To facilitate the use of available water allocations in the Burdekin Haughton Water Supply Scheme, this study investigated distribution channel limitations and augmentations.
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Undertaken by the Isaac Regional Council.
The study examines ways to achieve reliable long-term performance of the council's water supply, treatment, storage and distribution infrastructure for the next 20 years.
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Undertaken by Coalstoun Lake Water Pty Ltd (CLW).
The study looks into water supply option for the Coalstoun Lakes area, including a possible pipeline connecting Paradise Dam to Coalstoun Lakes and Biggenden looks at opportunities for Coalstoun Lakes.
This is to allow Coalstoun Lakes to capitalise on its abundance of high-quality soils suitable for irrigated agriculture and transform Coalstoun Lakes into one of Queensland’s most productive agricultural hubs. There are multiple assessments ongoing in the wider Burnett region that potentially intersect with this project, primarily the Queensland Government’s Bundaberg and Burnett Regional Water Assessment.
This detailed business case serves to inform the analysis of both water demands and supply options included within that Regional Water Assessment.
The project closely intersects with the Paradise Dam Improvement Project (that is currently being progressed), which means that for now and in the long-term, there are sufficient water allocations to support growth in the Coalstoun Lakes area (this project) and the broader Bundaberg region.
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Undertaken by the Stanthorpe and Granite Belt Chamber of Commerce.
The study has developed a detailed business case for the proposed Emu Swamp Dam and associated water distribution scheme – referring to the whole development as the Granite Belt irrigation project.
A formal Queensland Government addendum has been included at the start of the detailed business case, outlining a number of matters that need to be considered and appropriately addressed before the project can progress.
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Undertaken by Isis Central Sugar Mill.
This study looks at opportunities to enhance sugarcane supply to the mill by developing new sugarcane lands and infrastructure in the Gayndah region.
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Undertaken by Townsville Enterprise Limited (TEL).
The study into the proposed Hells Gates Dam and associated infrastructure requires a significant amount of further assessment to establish the financial viability and economic benefits associated with the proposal.
The feasibility study indicated this project would be challenging, with the main risks being:
- costs of water likely to restrict the viable cropping opportunities
- absence of a water allocation or allowance under the Water Plan
- capacity of markets to absorb significant additional horticultural production.
Because of this and other factors outlined in the report, this proposal needs to be further considered along with:
- other competing interests and development options for water resources in the area
- impacts to existing users and the environment.
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TEL is progressing the Hells Gates Dam and Big Rocks Weir project to detailed business case and environmental assessment stage. As an early deliverable of the assessment, TEL has completed a detailed business case for Big Rocks Weir and Hells Gates Dam, with both being treated as standalone projects.
The Big Rocks Weir business case was completed with assistance from GHD and KPMG.
The Hells Gates Dam business case was completed with assistance from SMEC.
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Undertaken by the Hughenden Irrigation Project Corporation Pty Ltd (HIPCo) with funding from the Australian Government’s National Water Infrastructure Development Fund.
The project is located 45km west of Hughenden in northern Queensland and proposes to harvest water from the Flinders River to supply to new irrigated agriculture.
The proposal was the subject of a preliminary business case, developed by the HIPCo and released in February 2020. The preliminary business case assessed multiple water supply options and recommended that more detailed assessment should be undertaken to identify a preferred option.
The subsequent detailed business case was completed in May 2022 and identifies the proponent’s preferred option to be an off‑stream storage adjacent to the Flinders River, that can capture flood flows for distribution to a new irrigation development.
Although the detailed business case has been completed, there are several matters that need to be progressed to understand the proposal's viability more fully. The formal statement in the detailed business case by the Department of Regional Development, Manufacturing and Water details these matters and should be read before considering the findings and recommendations in the detailed business case.
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Undertaken by Cape York Sustainable Futures and Regional Development Australia – Far North Queensland and Torres Strait.
The strategic business case assesses the expansion of the Lakeland Irrigation Area and considers soil suitability, water availability, storage and distribution design, analysis of economic and financial aspects and production of a business case.
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Undertaken by the Lockyer Valley Regional Council.
The study reviewed and short-listed water supply options for agriculture in the Lockyer Valley based on assessment and comparison of sustainability, yield and the levelised cost to supply water.
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Undertaken by North Burnett Regional Council and South Burnett Regional Council.
The study examined a range of water supply and security options in the North and South Burnett regions to underpin an expansion of irrigated agriculture, new jobs and economic growth.
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Undertaken by Mount Isa Townsville Economic Zone Inc. (MITEZ)
This preliminary business case assessed the estimated demand for new water entitlements in the area around Cloncurry and identified the proposed Cave Hill Dam as the preferred infrastructure.
The study indicated that the costs associated with the proposed development were likely to outweigh the benefits at this time.
MITEZ is preparing a detailed business case with the remaining NWIDF funds to assess the potential costs and benefits in more detail.
It will also undertake activities that can be used in the future if a change in circumstances makes the proposal viable.
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MITEZ has also prepared a detailed business case with the remaining NWIDF funds to assess the potential costs and benefits in more detail. This report identifies activities that can be used in the future if a change in circumstances makes the proposal viable.
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Undertaken by Building Queensland on behalf of the Queensland Government, the study has developed both a preliminary business case and a detailed business case for a proposed dam on the Walsh River near Mareeba.
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Access the detailed business case on Building Queensland’s website:
Undertaken by Queensland Farmers' Federation (QFF) on behalf of an unofficial consortium including QFF, Cotton Australia, AgForce, Lockyer Valley Regional Council, Toowoomba and Surat Basin Enterprise, and others.
The preliminary business case explores supplying recycled water (of varying quality) to the Darling Downs and Lockyer Valley for agriculture.
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Undertaken by the Tablelands Regional Council.
The study has developed a preliminary business case that examines the viability of multipurpose water use options as a vehicle to drive regional economic growth and achieve industry development and community benefit.
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Undertaken initially by Bowen Collinsville Enterprise Limited with the later and current stage being delivered by Bowen River Utilities.
The proposed Urannah Dam, on the Broken River near Collinsville, together with an associated water distribution network was the subject of a preliminary business case completed in 2019. Following the assessment of a range of technical, environmental and hydrological factors, as well as financial and economic modelling, Bowen Collinsville Enterprise has identified 2 options for further assessment.
The assessment of the proposal is progressing through the development of a detailed business case and Environmental Impact Statement lead by Bowen River Utilities.
The detailed business case for the proposal was completed in June 2021. It identifies potential water demand from the mining sector in the Bowen Basin and from a new irrigation area which could be established near Collinsville.
While the detailed business case has been completed, there are several matters that need to be progressed to understand the proposals viability and credentials. Once the Environmental Impact Statement and necessary further detailed technical assessments have been concluded, the detailed business case will be subject to review and updated to include outcomes from these important activities.
Please read the statement by the Department of Regional Development, Manufacturing and Water at the beginning of the report before considering the findings and recommendations of the study.
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Completed science projects
Projects completed under the National Water Grid Science Program.
The project uses a Multi Criteria Analysis (MCA) approach to provide a synthesis of information from all previous studies to identify areas in the Mitchell, Flinders and Gilbert catchments as potentially suitable for sustainable agricultural development and warranting further investigation.
Key constraints to profitable development were considered and included temperature and associate crop stress expected under climate change; the limited road and rail access to markets; access to labour; production costs; soil fertility and vegetation clearing restrictions.
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The focus of this study is a desktop assessment to identify areas of Queensland that may be suitable for further investigation for underground technologies (sand dams or underground dams) to support agricultural developments.
The first report presents a literature review, including an overview of the regulatory framework in Queensland and a summary of previous investigations into managed aquifer recharge schemes in Queensland by water plan area.
The second report presents the results of the Multi-Criteria Analysis (MCA) methodology used and the results of the analysis, identifying areas as having good potential for location of sand dams and sub-surface dams.
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