May 2026
The Concerned Waterways Alliance has provided a submission to the Essential Services Commission in response to its Draft Decision on Melbourne Water’s 2026 Price Review.
The submission focuses on whether the Draft Decision adequately reflects Melbourne Water’s current and emerging obligations as waterway manager, and whether the proposed pricing framework will support meaningful improvements in waterway health.
Key issues raised
The CWA acknowledges that while the Commission has applied reductions and adjustments across elements of Melbourne Water’s broader proposal, the decision not to reduce the base waterways and drainage component is welcomed.
However, the submission raises three primary concerns.
Removal of the $7.28 million waterway manager step change
The Draft Decision adopts the consultant’s recommendation to remove funding for vegetation grants, wetland and estuary management, and associated delivery capacity.
The CWA considers this funding to be directly linked to core waterway manager functions and notes that its removal would reduce Melbourne Water’s ability to deliver on-ground outcomes, particularly in rural and peri-urban catchments.
The submission also notes that recent planning and stormwater reforms have expanded expectations on waterway protection and management, and that these changes were not reflected in the original consultant’s assessment.
Treatment of community-supported programs
The submission highlights that Melbourne Water’s own engagement processes demonstrate strong support for increased investment in waterway health, including grant-based delivery models.
The CWA considers that this evidence should be given greater weight in the final decision.
Data centres and large-scale water demand
The submission supports the Commission’s preliminary position that Melbourne Water’s addendum on large and complex connections is not yet adequate.
It raises broader concerns about the scale of potential demand from data centres and the implications for system planning, water sourcing, and pricing.
In the submission the CWA recommends:
- development of a dedicated tariff class for very large users,
- full cost recovery through charges to data centres, including factoring in the envitable need for a greater reliance on higher cost desalination or recycled water sources,
- the need to fully insulate household water bills from the cost burden of supplying data centres,
- prioritisation of non-potable water sources, and
- improved transparency and reporting.
Summary
The submission asks the Commission to reconsider specific elements of the Draft Decision, in particular the removal of the waterway manager step change, and to strengthen its approach to large-scale water demand.
The focus is on ensuring that the final determination aligns with current policy settings, documented community expectations, and the practical requirements of delivering waterway health outcomes.