YARRA VALLEY URBAN WATER STRATEGY WATER

Transcription

1 YARRA VALLEY URBAN WATER STRATEGY WATER 2017

2 ABORIGINAL ACKNOWLEDGEMENT Yarra Valley Water proudly acknowledges Aboriginal people as Australia s first peoples and the local Traditional Owners as the original custodians of the land and water on which we rely and operate. We pay our deepest respects to their Elders past, present and future. We acknowledge the continued cultural, social and spiritual connections that Aboriginal people have with the lands and waters, and recognise and value that the Traditional Owner groups have cared for and protected them for thousands of generations. In the spirit of reconciliation, we remain committed to working in partnership with local Traditional Owners to ensure their ongoing contribution to the future of the water management landscape while maintaining their cultural and spiritual connections.

3 FOREWORD OUR PURPOSE IS TO PROVIDE EXEMPLARY WATER AND SANITATION SERVICES THAT CONTRIBUTE TO THE HEALTH AND WELLBEING OF CURRENT AND FUTURE GENERATIONS. This purpose sets out Yarra Valley Water s commitment to a sustainable future and is underpinned by three themes: 1. customers and community are at the centre of everything we do 2. protecting the environment and enhancing Melbourne s liveability 3. developing partnerships to meet the challenges of the future. Our Urban Water Strategy takes a long-term view across the next 50 years to ensure that we can fulfil our purpose. We have outlined directions for the future and actions for the next five years. We have considered these directions and actions against the United Nations Sustainable Development Goals, which represent a global consensus on what a sustainable future looks like and the priorities required to achieve this. Our directions and actions in this Strategy cover 13 out of the 17 sustainable development goals. In developing our Strategy, we have embraced the vision in the Victorian Government s recently released Water for Victoria Water Plan Water is fundamental to our communities. We will manage water to support a healthy environment, a prosperous economy and thriving communities, now and into the future. Our Strategy builds on many of the actions in this plan. Melbourne will be a vastly different city in 50 years accommodating many more people perhaps double our size according to the projections, with more densely populated suburbs, and is likely to be a drier warmer place due to climate change. The way we deliver water and sanitation services will change with technological and other innovations. But the core outcome sought by our customers is likely to remain sustained access to clean, affordable water and effective waste management. In addition, our customers will be looking to sustain and enhance the aspects that contribute to Melbourne being one of the world's most liveable cities, such as green open spaces for recreational activities and an improved environment including healthy rivers and streams that flow through our urban landscape. We have worked closely with the water industry in Melbourne and the Department of Environment, Land, Water and Planning to develop our Strategy to ensure there is consistency across Melbourne. To this end, a short summary document has been produced by the water industry Water for a Future Thriving Melbourne." We look forward to working closely with our customers, partners (including Traditional Owners and councils) and the water industry in delivering our Strategy. Pat McCafferty MANAGING DIRECTOR YARRA VALLEY WATER URBAN WATER STRATEGY

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5 CONTENTS OVERVIEW Executive Summary page 7 CHAPTER 1 Introduction page 26 CHAPTER 2 Strategic context page 32 CHAPTER 3 Our customers' voice page 43 CHAPTER 4 Our long-term water availability and sewerage capacity page 56 CHAPTER 5 Using the water we have sensibly page 90 CHAPTER 6 Being prepared for droughts and water shortages page 98 CHAPTER 7 Water-related urban amenity for the community page 106 CHAPTER 8 Engaging the community and Traditional Owners page 120 APPENDICES Appendices page 124 GLOSSARY Glossary page 147 REFERENCES References page 150 Shane Smith, Treatment Plant Optimisation Coordinator, Water Quality Sampling YARRA VALLEY WATER URBAN WATER STRATEGY

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7 EXECUTIVE SUMMARY INTRODUCTION YARRA VALLEY WATER IS MELBOURNE S LARGEST RETAIL WATER UTILITY, PROVIDING ESSENTIAL WATER AND SANITATION SERVICES TO MORE THAN 1.8 MILLION PEOPLE. OUR SERVICE AREA COVERS MOST OF MELBOURNE S NORTHERN AND EASTERN SUBURBS. Yarra Valley Water exists to enhance the liveability of our community, now and into the future. Our core purpose is to provide exemplary water and sanitation services that contribute to the health and wellbeing of current and future generations. This Urban Water Strategy outlines how we will manage water availability and sewerage capacity over the next 50 years to deal with key challenges population growth, climate change and weather variability while still delivering water-related urban amenity (such as parks, gardens and sporting grounds) and improving the environment. Water utilities are required to produce an Urban Water Strategy around every five years, under the Victorian Government s water-planning framework, considering all aspects of the urban water cycle across a 50-year period. Our Urban Water Strategy has been developed in collaboration with Melbourne s three other water utilities Melbourne Water, City West Water and South East Water. YARRA VALLEY WATER SERVICE AREA YARRA VALLEY COUNCIL BOUNDARIES MITCHELL MURRINDINDI CITY WEST WATER YARRA VALLEY WATER HUME WHITTLESEA NILLUMBIK MORELAND DAREBIN BANYULE YARRA RANGES PORT PHILLIP BAY SOUTH EAST WATER MELBOURNE MANNINGHAM BOROONDARA WHITEHORSE STONNINGTON WESTERN PORT PORT PHILLIP MONASH N CARDINIA POPULATION SERVED: 2016 (current): 1.8 million 2066 (50 years): 3.3 million YARRA VALLEY WATER URBAN WATER STRATEGY

8 VISION The Victorian Government recently released Water for Victoria, a plan designed to set the direction of water management in Victoria for decades to come. It is based on the following vision: WATER IS FUNDAMENTAL TO OUR COMMUNITIES. WE WILL MANAGE WATER TO SUPPORT A HEALTHY ENVIRONMENT, A PROSPEROUS ECONOMY AND THRIVING COMMUNITIES, NOW AND IN THE FUTURE. We have embraced this same vision in developing our own Urban Water Strategy. OUR SYSTEMS We provide water and sewerage services to our customers through distributing water and collecting sewage. We hold bulk entitlements to water from a number of catchment sources and desalinated water from the Victorian Desalination Plant at Wonthaggi. Our bulk water is delivered through Melbourne Water s bulk water supply system to our distribution system. Our customers sewage is treated at Melbourne Water s eastern and western sewage treatment plants and our ten local sewage and recycled water treatment plants. Our local sewage treatment plants provide recycled water for fit-for-purpose household, business, open space (e.g. sporting grounds, golf courses) and agricultural uses. An overview of our water and sewerage system is shown in the diagram below. KEY CHALLENGES OVER THE NEXT 50 YEARS Yarra Valley Water s main challenges in managing water availability over the next five decades are: population growth climate change (change in climate over longer-term) weather variability (periodic droughts and floods) providing for water-related urban amenity. Our service area in Melbourne is currently home to around 1.8 million people. This population is projected to increase to 3.3 million by Approximately 70% of this additional population will live in existing urban areas the rest will settle in new developments on the outskirts of the current urban area. Climate change projections indicate a hotter and drier climate over the long-term with more variability including an BULK WATER FROM MELBOURNE WATER DELIVERY OF WATER AND SANITATION SERVICES TO 1.8 MILLION CUSTOMERS SEWAGE LOCAL TREATMENT PLANTS SEWER MAIN EASTERN TREATMENT PLANT RECYCLED WATER WESTERN TREATMENT PLANT 8 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

9 increased number of storm events. A possible scenario is for streamflows into our reservoirs to decline in the long term, reducing our ability to rely on catchment-based water sources. We use the latest climate change scenarios produced by CSIRO and adopted by the Department of Environment, Land, Water and Planning. Weather variability is a key risk to our water supplies and infrastructure, and one that could worsen as our climate continues to change. Victoria has a highly variable climate, which produces severe floods, droughts and bushfires. The multi-year Millennium Drought ( ) led to the construction of major water supply augmentation works for Melbourne. These works included the Victorian Desalination Project, the Sugarloaf (North-South) Pipeline, and an investment in Goulburn-Murray Water s Connections Project that is saving 75 billion litres of water per year for Melbourne. The drought also had significant impacts on our customers, including social dislocation through the loss of urban amenities such as sporting grounds. The Victorian Government s Water for Victoria plan aims to build a resilient and liveable Melbourne using an integrated water management approach that includes creating green open spaces (including sporting grounds) that can be used even during a severe drought. These spaces will provide waterrelated urban amenity, reduce the growing city s heat island effect, and minimise the health impacts of heat stress caused by a warmer climate. OUR CUSTOMERS VOICE We have worked with our customers and the broader Melbourne community to develop our Urban Water Strategy. By engaging with our customers, we have learned that: Water is of the highest value. Our customers see it as essential to life but water utilities, the services they provide and the role they play to protect future water availability are not top of mind. Our customers do not immediately connect the role water and water utilities have with Melbourne s liveability unless prompted. The key water-related outcome sought by our customers is sustained access to clean, affordable water and effective waste management. The key issues our customers consider are availability, maintaining their standards of living and climate change. Our customers preferences are: 1. an adaptive planning approach that adjusts to the situation we face 2. Yarra Valley Water promoting sensible water use behaviours 3. a proactive and practical approach to managing water customers want us to further encourage the efficient use of water and not waste it (focussing on behavioural change and other similar measures to those that were implemented during the Millennium Drought). The majority of customers do not support paying more the most popular option is to make changes at home in order to avoid paying more 4. increased use of recycled water and stormwater recycling but they expect drinking water to continue coming from the mains supply 5. expansion of desalination capacity to be considered once all other options have been explored and then with extensive customer consultation. Customers were not aware of the existence of the annual Water Outlook and are looking for more regular and accessible engagement. There is an opportunity to be more proactive with communications and provide education, guidance, reminders and reassurance about the future. Customers support ongoing planning and believe it continues to be needed. We have taken these customer beliefs and preferences into account in developing our Urban Water Strategy, and will continue engaging the community in the future. OUR STRATEGY OUTCOMES Our strategy is based around: meeting the challenges of significant population growth, climate change, and weather variability while catering for water-related urban amenity meeting the preferences of our customers and the Melbourne community building upon Melbourne s existing water framework supporting the achievement of the Victorian Government s Water for Victoria plan and adopting its vision. We recognise that a lot can change over 50 years and we will be updating this strategy at five-year intervals to accommodate these changes. Our strategy aims to achieve five customer-focused outcomes: 1. providing the community confidence in our longterm water availability and sewerage capacity 2. ensuring the water we have is used sensibly 3. being prepared for droughts and times of water shortages 4. delivering water-related urban amenity to thriving communities 5. engaging the community and Traditional Owners. YARRA VALLEY WATER URBAN WATER STRATEGY

10 URBAN WATER STRATEGY CUSTOMER OUTCOMES OUR LONG-TERM WATER AVAILABILITY & SEWERAGE CAPACITY DELIVERING WATER RELATED URBAN AMENITY ENGAGING THE COMMUNITY USING THE WATER WE HAVE SENSIBLY & TRADITIONAL OWNERS BEING PREPARED FOR DROUGHTS THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS The United Nations Sustainable Development Goals (SDGs) represent a global consensus on what a sustainable future looks like and the priorities required to achieve this. In April 2015, we signed up to the United Nations Global Compact, which is the world s largest corporate sustainability initiative. By doing so we committed to advance the SDGs which broaden the way we see sustainability from environmental stewardship to now also include economic prosperity and social inclusion. Water is a vital part of the social fabric in every community and through the delivery of essential water and sanitation services, our activities support many of the SDGs. We have used the priorities set out in the SDGs as a lens to review and enrich our strategy to ensure we can maximise the value we provide to our community. They create a platform for purpose driven conversations between sectors and the need to work in partnerships. Our directions and actions in this strategy cover 13 out of the 17 goals and the relevant SDGs are shown against each long-term direction and five-year action. United Nations Sustainable Development Goals 10 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

11 PROVIDING THE COMMUNITY WITH CONFIDENCE IN OUR LONG-TERM WATER AVAILABILITY AND SEWERAGE CAPACITY WATER We will provide our customers with a water supply without restrictions except during major emergencies, such as an extremely severe drought or a major bushfire in our protected supply catchments. We expect that our customers will continue using water sensibly while enjoying the amenity that water provides. Melbourne s water availability may become unpredictable over the next 50 years. To mitigate the uncertainty, we have adopted an adaptive approach using a number of climate change and population growth scenarios. The Figure below shows the mid-points in a range of projections over the 50- year period. The mid-point projection for residential water use is that it will decline from the current volume of 161 litres per person per day to 127 litres per person per day in 2066 a reduction of 35%. This is due to the substantial expected increase in multi-residential dwellings (where average use is 40% lower than a separate dwelling due to smaller or no gardens and lower household size) and the expected efficiency gains of in-house appliances such as clothes washers. This projected reduction is on the back of a 32% reduction in residential water use from the early 2000's during which water use was 246 litres per person per day. YARRA VALLEY WATER S 50-YEAR DEMAND SUPPLY OUTLOOK NOW DEMAND 1.8 million people Household use: 161 l /p/d 2.5 million people Household use: 137 l /p/d 3.3 million people Household use: 127 l /p/d SUPPLY 160 billion litres Catchment: 140 Desalinated water: 19 Recycled and rainwater: billion litres Catchment: 121 Desalinated water: 48 Recycled and rainwater: billion litres Catchment: 114 Desalinated water: 56 Recycled and rainwater: 8 Unidentified: 31 * Based on median supply and medium demand scenarios. Existing rainwater demand is not included. * These additional water resources are likely to be produced from progressive changes in technology over the next 50 years coupled with our adaptive approach. Over the same period from the early 2000's, total nonresidential water use (commercial, industrial and councils) decreased by 30% from 39.7 billion litres to 27.8 billion litres. Under this median scenario, non-residential demand is projected to increase by a modest 0.3% per year to 32.7 billion litres in 2066 (our population is projected to increase by an average of 1.2% per year over the 50 years). Faced with the scenario of growth combined with high climate change impact, we would need to augment our bulk water resources by 2031 (on the same basis, the Melbourne water supply system will need to be augmented by 2028 the rest of Melbourne is forecast to have higher population growth than our area). If a significant drought occurs on top of this scenario, additional water supplies may be needed sooner. Our long-term water availability strategy is built on a foundation of being adaptable to cater for all future circumstances. The key activities associated with achieving this outcome are: providing ongoing information to our customers on our long-term water availability including: 1. reviewing the annual Water Outlook a snapshot of our water availability on 1 December each year prior to the commencement of the peak summer water use period to make it more customer friendly and accessible (produced jointly by the water sector in Melbourne) YARRA VALLEY WATER URBAN WATER STRATEGY

12 2. providing better and more regular engagement with our customers on future water availability. monitoring long-term trends including understanding developments with the latest science associated with climate change and water management. becoming a leader in climate change adaption through our restorative environmental strategy which includes being greenhouse gas neutral and acting restoratively we plan to become energy self-sufficient by managing our short-term (one year) and mediumterm (up to five years) water availability requirements through: 1. planning for the optimal use of all water resources including taking account of water availability risks and the extra cost of desalinated water 2. providing ongoing advice to customers about the use of desalinated water to supplement our water supplies. making the most of our existing water resources and continuing to promote the efficient use of water through programs like Target 155 and our Schools Education Program. Our customers, like the majority of Melburnians, have adopted a great culture of saving water, and currently use 32 per cent less than they did in the early 2000's. The desalination plant increases the resilience of Victoria s water supplies, but sensible watersaving measures are still needed to keep Melbourne s water use at reasonable levels and ensure water bills are affordable for current and future generations. diversifying our water sources, including rainfallindependent water supplies. This underpins our adaptive approach to managing Melbourne s water availability over the next 50 years and ensures there is water resilience to meet the demands of the growing city and its water-related urban amenity. We will diversify our catchment-based water supply system, in collaboration with the water industry in Melbourne and Department of Environment, Land, Water and Planning, by considering the following: 1. stormwater recycling and recycled water where feasible. We have already mandated recycled water for 100,000 new homes in Melbourne s Northern growth area, which will require six billion litres per year of recycled water at full development, and are piloting advanced processes to recycle stormwater to drinking water standard 2. desalination capacity - we understand that our customers believe that the expansion of the Victorian Desalination Project should only be considered once all other options have been explored and then only with extensive customer consultation. trading water to other urban water utilities in southern Victoria to maximise the utilisation of water resources by all water users and reduce the need for water supply augmentations. Yarra Valley Water s service area is projected to grow at a lower rate than others in greater Melbourne over the next 50 years so we are likely to sell water to other urban water utilities. If, at any point, long-term water shortages seem likely, we will begin detailed planning for the next major augmentation of Melbourne s water supply in collaboration with the water utilities in Melbourne and the Department of Environment, Land, Water and Planning. IMAGE: Wallan sewage treatment plant upgrade. 12 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

13 LONG-TERM DIRECTIONS - COMMUNITY CONFIDENCE IN WATER AVAILABILITY understand and reflect customer needs and expectations in our planning provide ongoing accessible information to our customers on our long-term water availability continue to monitor long-term trends become a leader in climate change adaption and explore zero net greenhouse gas emissions by 2030 manage our short-term (one to three years) water availability requirements through optimal use of all our water resources continually evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration customer preferences continually evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration customer preferences engage with the community on the value of our diverse water supply system to our customers and instil confidence and trust in the services we provide diversify our water sources through recycled water and stormwater recycling schemes the water industry in Melbourne is forecasting 25 GL of alternative water by 2066 in line with current plans. The water utilities in Melbourne are aiming to contribute a further 40 billion litres where business cases demonstrate value to their communities [joint Melbourne water industry] make the most of our existing water resources and continue to promote efficient use of water through programs like Target 155 and our Schools Education Program trade water with other urban water utilities in southern Victoria to avert water shortages by some urban water utilities and potentially delay any major water grid addition. SUSTAINABLE DEVELOPMENT GOALS: SEWERAGE Sewerage services are a key part of our role. Our long-term sewerage objective is to provide an exemplary sewerage service that protects public health and is in harmony with the environment at lowest community cost. Around 92% of Yarra Valley Water s sewage is treated at Melbourne Water s eastern and western sewage treatment plants the rest is treated at our ten local sewage and recycled water treatment plants. We will be working with the water industry in Melbourne on the development of a Sewerage Strategy, due for completion in September Over the long term, we need to invest in new and upgraded sewerage infrastructure to cater for: impacts of population growth in the northern suburbs and urban renewal in existing urban areas impacts of climate change events such as heavy rainfall, which infiltrates sewers and causes overflows at emergency relief structures that discharge into drains and waterways replacing ageing assets increased demand for recycled water changes in regulations and standards resulting from new information such as the environmental impacts of emerging contaminants. Key elements of our sewerage strategy include: providing ongoing information to our customers on our long-term sewerage capacity including better and more regular engagement on future sewerage needs a robust risk-based asset management framework that seeks to provide exemplary and affordable service outcomes for the community and environment establishing and expanding local recycled water treatment plants in major growth and urban renewal areas to facilitate recycling and deferring or avoiding significant investment in the centralised sewerage and drinking water systems continuing efficient and effective management of local treatment plants assessment of the sewerage system for environmental restoration and resource recovery opportunities such as recycled water, waste-to-energy and sludge recovery applying a risk-based approach to treatment plant discharges to manage the impact on waterways YARRA VALLEY WATER URBAN WATER STRATEGY

14 applying a risk-based approach to progressive improvement of collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewer overflows at emergency relief structures working with councils and the community to prioritise and implement modern sewerage systems to replace septic tank systems not capable of properly treating and managing sewage on-site by delivering our Community Sewerage Schemes. Our local sewage and recycled water treatment plants are a key resource. Our waste-to-energy facility at our Aurora treatment plant is close to completion, and we are assisting with an investigation of the use of recycled water from our Lilydale sewage treatment plant by horticulturalists around Coldstream in the Yarra Valley. Our service area includes approximately 12,000 properties that lack sustainable sewerage services. Most of these properties rely on on-site septic tank systems. If the property is unsuitable or septic systems are incorrectly sized or inadequately maintained, this effluent can seep into groundwater and run-off into waterways. This leads to poor amenity and environmental and community health risks. Our community sewerage schemes, such as at Park Orchards and Monbulk, are innovative solutions being tailored to meet the needs of local communities. IMAGE: Amaroo Main Sewer construction. 14 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

15 LONG-TERM DIRECTIONS - COMMUNITY CONFIDENCE IN SEWERAGE CAPACITY understand and reflect customer needs and expectations in our planning provide ongoing accessible information to our customers on our long-term sewerage availability develop a robust risk-based asset management framework that seeks to provide exemplary and affordable service in harmony with the environment investigate (and, if feasible, implement) the use of treated effluent from local sewage treatment plants or the sewerage system for use in major growth and urban renewal areas to defer or avoid significant investment in the centralised sewerage and drinking water systems ensure efficient and effective management of local treatment plants assess the sewerage system for environmental restoration and resource recovery opportunities apply a risk-based approach to treatment plant discharges to manage the impact on waterways apply a risk-based approach to progressively improve the collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewage overflows at emergency relief structures ensure continuous improvement of our adaptive investment program to identify and rectify blocked sewers work with councils and the community to prioritise and implement modern sewerage systems to replace septic tank systems not capable of properly treating and managing sewage on site. SUSTAINABLE DEVELOPMENT GOALS: ENSURING THE WATER WE HAVE IS USED SENSIBLY The community expects that our water will be used sensibly, and we continue to focus on efficient water use behaviours such as Permanent Water Use Rules. More than one billion people worldwide do not have access to safe drinking water, but in Australia we often take our quality tap water for granted. Yarra Valley Water s Choose Tap program is a community-based initiative promoting tap water as the best choice for the environment, people s health and the hip pocket. The key activities to ensure the water we have is used sensibly are: use of permanent water use rules, which are already in place across Melbourne promoting efficient and sensible use of water through: 1. Water efficiency programs such as Target 155. This is a voluntary water efficiency program that encourages Melbourne households to use water efficiently by aiming for a maximum of 155 litres per person per day. 2. Our Schools Education Program. We help schools and early learning centres to integrate water as a topic into the curriculum for educators and students. For schools, this includes free classroom presentations, a lending library, giant games and floor puzzles, competitions to celebrate National Water Week and water education curriculum resources. 3. Encouraging schools to participate in the Schools Water Efficiency Program. This Victorian Government initiative enables schools to track their water usage using data logger technology, providing schools with access to subsidised data loggers, a dedicated website, specialist advice and curriculum materials for monitoring and managing water consumption and continuing the water efficiency education of Victorian school children. 4. Continuing to assist businesses and Councils (public gardens and sporting grounds) to become more water efficient and explore alternative water sources. YARRA VALLEY WATER URBAN WATER STRATEGY

16 5. Continuing customer engagement on water efficiency e.g. account inserts, social media, local media. promoting the Choose Tap program, which provides readily available drinking water that is cheap, supports public health and reduces waste. Choose Tap makes tap water more accessible to the community with a range of initiatives focused on sports and recreation, health and wellbeing and an extensive education program. LONG-TERM DIRECTIONS - USING THE WATER WE HAVE SENSIBLY continue to engage with the community to use the water we have sensibly continue to promote efficient and sensible use of water through programs like Target 155, our Schools Education Program, the Schools Water Efficiency Program and our business and Council programs continue to promote the health and well-being benefits of tap water through the Choose Tap program SUSTAINABLE DEVELOPMENT GOALS: BEING PREPARED FOR DROUGHTS AND WATER SHORTAGES Future planning is essential to manage periodic droughts and major water shortage events. Investing in climate-independent sources such as desalination and other fit-for-purpose water sources will go a long way towards mitigating the impacts of such events, but we still depend on catchment-based water sources. We plan to provide a water supply without restrictions except during major emergencies, such as a major bushfire in our protected catchments or an extremely severe drought event. We will consider only using water restrictions during these emergency periods. Our adaptive framework is based around three tiers and the level of Melbourne s storages to manage periods of water shortage and includes a set of actions to be undertaken in each zone. This framework is common to water utilities in Melbourne. Our Drought Preparedness Plan ensures: the community is informed and prepared about impending water shortage periods we have a timely and effective short-term response to water shortages when they occur the aim of our response is to minimise the social, economic, and environmental impacts of such shortages. During the Millennium Drought, restrictions had wide-reaching impacts on the community including: the inability to water open green spaces such as playing fields, recreational areas, community gardens, bowling greens, turf racecourses and golf courses in some cases, an inability to play on dry sporting grounds contributed to social disadvantage councils having to spend considerable amounts of money to restore community assets (such as sporting grounds and street trees) when the drought ended direct impacts on businesses such as nurseries, turf farms, landscapers and commercial car washes. Our Drought Preparedness Plan includes the ability to regulate the use of water outdoors via a by-law for water restrictions. Restrictions remain valued and largely acceptable to our customers. Nevertheless, our adaptive framework is aimed at avoiding severe restrictions we understand the significant social and economic effects of severe water restrictions on the community. Furthermore a community-based behaviour change campaign supplemented with a rebate program is likely to provide a greater volume of water savings than implementing restrictions. Existing levels of water efficiency indicate minimal water saving under these lighter restriction 16 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

17 levels. The appropriate program will be considered by the water utilities in Melbourne at the time that action is required under the three-tier adaptive framework to actively reduce water use. Our framework ensures we will plan for all events. If we must have restrictions, our priority is to minimise the impact on water-related urban amenity. To do this, we will work with councils and community organisations to identify priority open spaces that should be watered during restrictions and the best ways to water them. Options may include alternative water sources or providing an exemption from drinking water restrictions. The water utilities in Melbourne produce an Annual Water Outlook on 1 December at the start of summer, as part of our Drought Preparedness Plan. This informs our customers about short-term water availability following the winter-spring dam filling period. We recognise that our customers require ongoing communication on water matters. LONG-TERM DIRECTIONS - BEING PREPARED FOR DROUGHTS AND WATER SHORTAGES an adaptive framework for the water utilities in Melbourne to manage any water shortages including being able to manage a repeat of the Millennium Drought without impacting on our customers, the community or the environment have a Drought Preparedness Plan that can be readily implemented and caters for a severe drought or a major water shortage emergency work with councils and other stakeholders to manage the potential impacts on the community of droughts and other emergency events provide ongoing advice to customers about short-term water availability using communication tools such as the annual Water Outlook SUSTAINABLE DEVELOPMENT GOALS: DELIVERING WATER-RELATED URBAN AMENITY TO THRIVING COMMUNITIES One of the objectives of the Victorian Government s Water for Victoria states: We will help transform Victorian cities and towns into the most resilient and liveable in the world. We will include all elements of the urban water cycle in the way we plan and manage water so that Victorian communities can continue to thrive in all climates. The concept of a water-sensitive city underpins this objective: Water sensitive cities are resilient, liveable, productive and sustainable. 1 They interact with the urban hydrological cycle in ways that provide water security for economic prosperity through efficient use of diverse water resources; enhance and protect the health of watercourses and wetlands; mitigate flood risk and damage, and create public spaces that harvest, clean and recycle water. Melbourne is well on its way to being a water-sensitive city this is one of the long-term goals of Water for Victoria. Integrated water management goes beyond institutional boundaries to include community values, best-for-community outcomes, and varying needs for water in a place-based context. A water-sensitive city supports lifestyle outcomes through urban heat mitigation and the provision of ecological landscapes and urban waterscapes it considers all parts of the water cycle to deliver sustainable and resilient water services. A recent assessment has found that Melbourne is a waterways city and is half way to being a water cycle city with its adoption of a total water cycle approach and use of integrated water systems refer to the Figure on the next page. The Victorian Government s integrated water management approach aims to promote collaborative planning and management of water, land and related services to maximise economic, social and ecological benefits to the community. This planning is based on local values and priorities, with a focus on opportunities. 1 CRC for Water Sensitive Cities, 2016, Water Sensitive Cities Benchmarking and Assessment: Greater Melbourne Region, p3 YARRA VALLEY WATER URBAN WATER STRATEGY

18 Integrated water management supports green and blue infrastructure such as parks, wetlands, streams and urban vegetation, and can deliver multiple benefits including flood mitigation, urban cooling, clean air, healthy streams and increased biodiversity, as well as contributing to recreation and amenity. A new integrated water management planning framework will guide the development of place-based integrated water management plans to provide integrated water services and support liveable and resilient urban places. working with communities, councils and other partners to achieve the best community solutions. We have successfully used this approach in a number of areas, including our northern suburbs and Doncaster Hill developments. We are currently using it in the La Trobe and Monash National Employment Clusters and our community sewerage schemes such as at Monbulk and Park Orchards (see the map below for key opportunity areas). Yarra Valley Water considers the complete water cycle when planning for Melbourne s growth in its area. This means 100% 100% 100% 97% 50% 10% CURRENT Water supply city Sewered city Drained city Waterways city Water cycle city Water-sensitive city Water for potable use Water for nonpotable use Wastewater management Stormwater disposal Pluvial flood risk reduction Stormwater hydrology and quality Improved habitat Ecological health Total water cycle management Integrated water systems Thermal comfort Identity and vision New hydro-social contract Places for social interaction Recreational opportunities Engagement Intergenerational equity Aesthetic (beauty) In each area, our planning approach identifies shared benefits by: having a shared vision for the area having an agreed evaluation framework working with our partners (such as councils and Melbourne Water) to identify the benefits, costs and, ultimately, costsharing arrangements. Water for Victoria has proposed the establishment of catchment-based integrated water management (IWM) regional forums. These forums will identify challenges and opportunities for achieving water-related benefits in priority areas. Yarra Valley Water will be actively participating in the IWM forums. INTEGRATED WATER MANAGEMENT (IWM) FORUMS Facilitated by an appointed independent chairperson, IWM forums will coordinate IWM planning across each forum s geographical area. Forum participants identify opportunities to collaborate and form partnerships to deliver integrated servicing solutions and bring these to the IWM forums for consideration. The IWM forums will prioritise these opportunities using an opportunity and risk-based approach. There will be five forums in the metropolitan area Maribyrnong River, Werribee River, Yarra River, Dandenong Creek and Westernport catchments. 18 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

19 LONG-TERM DIRECTIONS - DELIVERING WATER-RELATED URBAN AMENITY work with our communities and partners to identify the best community solutions for priority places (such as new growth areas and National Employment clusters) participate in catchment-based Integrated Water Management forums participate in ongoing development of the Investment Evaluation Framework developed by the water utilities in Melbourne. SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

20 ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS Community engagement is central to achieving sustainable outcomes for our Urban Water Strategy. Our track record of engaging with customers to achieve successful outcomes (such as the Park Orchards Community Sewerage Scheme) is strong, and these skills are transferable to delivering our Urban Water Strategy. Community engagement is central to our planning we use it to guide us in our decisions about providing our services. Some of the best innovation results come from listening and understanding. Customers have told us that there is an opportunity to better engage with the community about ongoing water availability planning. We have initiated a wideranging community engagement program to develop our Price Determination Submission, using over 28,000 inputs to shape how we can deliver value. Ongoing community engagement will support future development of our Urban Water Strategy and how we manage its delivery. We acknowledge the connection to Country of Traditional Owners that has existed for thousands of generations and continues today. Working collaboratively we are committed to building on our initial meetings with Traditional Owners, to develop guiding principles for long-term meaningful engagement so that we can work together on the management of water resources. This collaborative work is supported by our Reconciliation Action Plan, which outlines the overall approach that we will take to strengthen how we engage and work with Traditional Owners and Aboriginal and Torres Strait Islander communities. A key focus is building relationships and jointly developing our capabilities to engage with each other, including cultural learning opportunities and empowering our staff to be more culturally responsive, as well as exploring how we can support participation through employment and procurement opportunities. LONG-TERM DIRECTIONS - ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS community engagement will continue to be fundamental to the way we work we will take a holistic approach to strengthen how we engage and work with Traditional Owner groups and Aboriginal and Torres Strait Islander people and organisations we will work collaboratively across the water sector to develop long-term meaningful relationships with Traditional Owners in the metropolitan region to better integrate cultural water needs into water resource management, and ensure their contribution to the future of water management. We aspire to create relationships and actions that enable the co- design, co-development and comanagement of water resources. [collaborative action with the water utilities in Melbourne] SUSTAINABLE DEVELOPMENT GOALS: LINK TO WATER FOR VICTORIA Our Urban Water Strategy is consistent with the key outcomes contained in Water for Victoria: managing the potential range of climate change impacts recognising the rights of Traditional Owners to use, develop and control water sources under and on our Country supporting the development of a resilient and liveable Melbourne by: 1. diversifying our water sources to secure water supplies 2. continuing to promote sensible use of drinking water 3. including sewage in the context of the urban water cycle this contributes to healthier waterways, improved parks and gardens and better public health 4. placed-based integrated water management plans. supporting environmental flows incorporating a Drought Preparedness Plan as an addendum to our Urban Water Strategy. 20 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

21 OUR ACTION PLAN FOR THE NEXT FIVE YEARS We have identified a number of areas where further work is required over the next five years and these are shown below. PROVIDING THE COMMUNITY CONFIDENCE IN OUR LONG-TERM WATER AVAILABILITY continue to engage with our customers and the community to ensure we reflect their needs and expectations in our water supply planning [collaborative action with the water utilities in Melbourne] provide ongoing accessible information to our customers on our long-term water availability publish the water outlooks to meet community expectations to be more proactive, engaging and accessible [collaborative action with the water utilities in Melbourne] provide ongoing engagement with our customers and the community of the value of our water supply system to build understanding, confidence and trust in the services we provide both now and in the future [collaborative action with the water utilities in Melbourne] review the desalinated water order process in consultation with Department of Environment, Land, Water and Planning to ensure alignment with adaptive planning by September 2017 commit to supporting the efficient use of water across the community. By 2022, the water industry in Melbourne is forecasting demands of: 150 litres per person per day for residential drinking water use across Melbourne 230 litres per person per day for total water use across Melbourne. We will publish our performance and actions in the water outlook [collaborative action with the water utilities in Melbourne] develop business cases for alternative water projects to demonstrate value to our communities continue to drive water efficiency including through our Target 155 and our schools education programs support Department of Environment, Land, Water and Planning in the delivery of Water for Victoria actions including Long-term Water Resource Assessment for southern Victoria, Central Region Sustainable Water Strategy, south central market trial, and development of grid oversight function evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration community preferences [collaborative action with the water utilities in Melbourne] continue to work collaboratively across the industry to assess the benefits of digital metering for our communities [collaborative action with the water utilities in Melbourne] trade water with other urban water utilities in southern Victoria to avert water shortages by some urban water utilities and potentially delay any major water grid addition. SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

22 PROVIDING THE COMMUNITY CONFIDENCE IN OUR LONG-TERM SEWERAGE CAPACITY continue to engage with our customers and the community to ensure we reflect their needs and expectations in our sewerage planning. provide ongoing accessible information to our customers on our long-term sewerage availability deliver the Melbourne Sewerage Strategy by 2018 [collaborative action with the water utilities in Melbourne] maintain a best practice risk-based asset management framework for the sewerage system investigate the use of recycled water from local sewage treatment plants or the sewerage system for use in major growth and urban renewal areas assess the sewerage system for further resource recovery opportunities deliver food waste to our energy facility at our Aurora treatment plant investigate the capacity to manage the impact of treatment plant discharges on waterways investigate improvements to the collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewage overflows at emergency relief structures identify improvements to the rectification of blocked sewers deliver the Park Orchards and Monbulk Community Sewerage Schemes. SUSTAINABLE DEVELOPMENT GOALS: PROVIDING THE COMMUNITY CONFIDENCE IN OUR LONG-TERM WATER AVAILABILITY AND SEWERAGE CAPACITY - CLIMATE CHANGE undertake a leadership role for Victoria by exploring zero net greenhouse emissions by 2030 [collaborative action with the water utilities in Melbourne] reduce our greenhouse gas emissions by 64% by SUSTAINABLE DEVELOPMENT GOALS: 22 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

23 ENSURING THE WATER WE HAVE IS USED SENSIBLY continue to implement Permanent Water Use Rules deliver on our Target 155 program continue to develop and deliver our Schools Education Program expand our Schools Water Efficiency Program to other sectors continue to promote the benefits of tap water through the Choose Tap program undertake water efficiency research to understand future technology trends. SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

24 BEING PREPARED FOR DROUGHTS AND WATER SHORTAGES publish the water outlooks to meet community expectations to be more proactive, engaging and accessible [collaborative action with the water utilities in Melbourne] review the Drought Preparedness Plan every five years [collaborative action with the water utilities in Melbourne] work with councils to identify priority public assets (e.g. open spaces such as sporting grounds and parks and gardens) to meet liveability outcomes by March 2018 [collaborative action with the water utilities in Melbourne]. SUSTAINABLE DEVELOPMENT GOALS: DELIVERING WATER-RELATED URBAN AMENITY TO THRIVING COMMUNITIES work with our customers to create linkages between Melbourne's water-related urban amenity (liveability) and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions work with our communities and partners to identify the best community solutions for priority places (such as new growth areas and National Employment clusters) continue to lead and participate in place-based urban planning that involves Traditional Owners, local councils and Melbourne Water actively support the Department of Environment, Land, Water and Planning in the formation and delivery of the integrated water management forums and plans and participate in catchment-based integrated water management forums [collaborative action with the water utilities in Melbourne] consider all of the benefits of alternative water projects when developing business cases based on the scenarios from urban water strategies and work to ensure alignment of implementation across the industry. Quantify further benefits on liveability outcomes and health benefits and review the principles of recycled water and stormwater pricing by 2019 for inclusions in business cases [collaborative action with the water utilities in Melbourne] SUSTAINABLE DEVELOPMENT GOALS: 24 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

25 ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS work collaboratively across the water sector to develop long term meaningful relationships with the Traditional Owners in the metropolitan region to better integrate cultural water needs into water resource management, and ensure their contribution to the future of water management. We aspire to create relationships and actions that enable the co-design, co-development and co-management of water resources [collaborative action with the water utilities in Melbourne] continue to engage with our customers on water and sewerage service and planning matters ongoing research into customer perceptions of value and performance SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

26 1 INTRODUCTION 1.1 BACKGROUND The Millennium Drought ( ), raised greater awareness of the fundamental role of water in the quality of life of our community. Water is an essential service that supports a healthy environment, prosperous economy and thriving communities. Melbourne s liveability depends on accommodating significant population growth and enhancing amenity, while dealing with the long-term impacts of climate change and the short-term impacts of weather variability (droughts and floods). We can achieve these goals by creating greener, more resilient urban landscapes, encouraging healthy waterways and improving social equity and community empowerment through better participation and access to information. The Victorian Government s recently released water plan, Water for Victoria, aims to use Victoria s water sector to help transform Victorian cities and towns into the most resilient and liveable in the world. By planning and managing all elements of the urban water cycle in an integrated and innovative way, we can improve water-related resilience and increase liveability outcomes. Victoria s adaptive water management framework for water resources underpins the delivery of this objective, requiring water utilities to produce: an Urban Water Strategy with a 50-year planning outlook every five years a Drought Preparedness Plan every five years or within 12 months of either the lifting of any period of water restrictions or the augmentation of any water supply system an Annual Water Outlook with a short (one-year) and medium term (up to five years) focus that includes action plans for managing the water portfolio for the ensuing year and next three years. Our Urban Water Strategy outlines a plan for managing our water availability over the next 50 years, incorporating the key challenges of climate change and population growth while considering water-related urban amenity (for example, parks, gardens, sporting grounds) and weather variability. The state s water planning framework requires each urban water utility to produce such a strategy every five years. Our Urban Water Strategy has largely been developed through a collaborative process involving the four water utilities in Melbourne Melbourne Water, City West Water, South East Water and Yarra Valley Water. OUR STATEMENT OF OBLIGATIONS (GENERAL) By 31 March 2017, and thereafter as directed by the Minister, the Corporation must develop, in accordance with any written guidelines issued by the Minister, an Urban Water Strategy for its supply districts that must include: (a) proposed levels of service; (b) measures to deliver sub-regional planning outcomes, and integrate water cycle management with relevant planning schemes; (c) options to facilitate efficient investments in projects across the urban water cycle that optimise shared benefits and avoidable costs; (d) measures to adapt to climate change; (e) measures to maintain a balance between the customer s demand for water and the supply of water in cities and towns; (f) options for the management of extreme event supply contingencies; and (g) options and trigger points for major augmentations. The strategy should consider all aspects of the urban water cycle across a 50-year planning horizon and be consistent with the guiding principles of this Statement and any relevant Sustainable Water Strategy. In developing an Urban Water Strategy, the Corporation must consult with the community and key stakeholders, and participate in the development of relevant local and regional plans. 26 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

27 Wallan Sewage & Recycled Water Treatment Plant YARRA VALLEY WATER URBAN WATER STRATEGY

28 1.2 ABOUT US Yarra Valley Water is Melbourne s largest retail water utility, providing essential water and sanitation services to more than 1.8 million people. We are the third largest water utility in Australia by the number of customers. We manage more than $4.1 billion of assets across approximately 4,000 square kilometres our service area covers most of Melbourne s northern and eastern suburbs, from Wallan in the north to Warburton in the east as shown in Figure 1. Yarra Valley Water exists to enhance the liveability of our community, today and tomorrow. Our core purpose is to provide exemplary water and sanitation services that contribute to the health and wellbeing of current and future generations. This purpose anchors our 2020 Strategy refer to Figure 2. It encapsulates why we exist and guides everything we do. Our long-term environmental commitment recognises that a healthy environment is vital to support a prosperous Melbourne, resilient to the impacts of population growth, climate change and drought. Figure 1: Yarra Valley Water s service area MITCHELL MURRINDINDI CITY WEST WATER YARRA VALLEY WATER HUME WHITTLESEA NILLUMBIK MORELAND DAREBIN BANYULE YARRA RANGES PORT PHILLIP BAY SOUTH EAST WATER MELBOURNE MANNINGHAM BOROONDARA WHITEHORSE STONNINGTON WESTERN PORT PORT PHILLIP MONASH N CARDINIA KEY STATISTICS 1.8 million population served 712,451 52,836 residential properties business customers 13,361 new customers in number of employees 28 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

29 Figure 2: Yarra Valley Water s 2020 Strategy 1.3 THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS The United Nations Sustainable Development Goals (SDGs) represent a global consensus on what a sustainable future looks like and the priorities required to achieve this. In April 2015, we signed up to the United Nations Global Compact, which is the world s largest corporate sustainability initiative. By doing so we committed to advance the SDGs which broaden the way we see sustainability from environmental stewardship to now also include economic prosperity and social inclusion. Water is a vital part of the social fabric in every community and through the delivery of essential water and sanitation services, our activities support many of the SDGs. We have used the priorities set out by the SDGs as a lens to review and enrich our strategy to ensure we can maximise the value we provide to our community. They create a platform for purpose driven conversations between sectors and the need to work in partnerships. Our directions and actions in this strategy cover 13 out of the 17 goals 2. Figure 3: United Nations Sustainable Development Goals 2 SDGs 2,3,4,6,7,8,9,11,12,13,15,16,17 YARRA VALLEY WATER URBAN WATER STRATEGY

30 1.4 OUR WATER AND SEWERAGE SYSTEMS We provide water and sewerage services to our customers through distributing water and collecting sewage. We hold bulk entitlements to water from a number of catchment sources and desalinated water from the Victorian Desalination Project at Wonthaggi. Our bulk water is delivered through Melbourne Water s bulk water supply system to our distribution system. An overview of our water supply and sewerage systems is shown in Figure 4 below. Further details on our bulk water system is contained in Appendix 1. Around 92% of the sewage we collect from our customers is treated at Melbourne Water s eastern and western treatment plants, with the remainder processed at our ten local sewage and recycled water treatment plants. Our local sewage and recycled water treatment plants provide recycled water to our customers for household, business, open space (e.g. sporting grounds, golf courses) and agricultural uses. Figure 4: Our Current Water Systems BULK WATER FROM MELBOURNE WATER DELIVERY OF WATER AND SANITATION SERVICES TO 1.8 MILLION CUSTOMERS SEWAGE LOCAL TREATMENT PLANTS SEWER MAIN EASTERN TREATMENT PLANT RECYCLED WATER WESTERN TREATMENT PLANT 30 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

31 1.5 STRATEGY APPROACH AND CHAPTER OVERVIEW Our strategy is based around: meeting the challenges of significant population growth, climate change, and weather variability while catering for water-related urban amenity meeting the preferences of our customers and the Melbourne community building upon Melbourne s existing water framework supporting the Victorian Government s Water for Victoria plan and adopting its vision. We recognise that a lot can change over next 50 years and are committed to updating this strategy at five-year intervals to accommodate these changes. Our strategy aims to achieve five customer-focused outcomes while ensuring our commitment to continuing to provide safe and pleasant-to-drink water from our drinking water systems: 1. providing the community with confidence in our long-term water and sewerage availability 2. ensuring the water we have is used sensibly 3. being prepared for droughts and water shortages 4. delivering water-related urban amenity to thriving communities. 5. engaging the community and Traditional Owners. The chapters of this document are as follows: Chapter 2: Strategic context focuses on: 1. the vision we have adopted for our Urban Water Strategy 2. the key challenges facing us over the next 50 years 3. considering the shape of our city over the next 50 years 4. links to Water for Victoria. Chapter 3: Our customers voice outlines the results from our customer research Chapter 4: Our long-term water and sewerage availability the first of our customer outcomes, focusing on: 1. our water availability and level of service 2. managing our water supply demand balance for the next 50 years 3. our strategy for long-term water availability strategy 4. our strategy for long-term sewerage capacity. Chapter 5: Using the water we have sensibly the second of our customer outcomes, focusing on: 1. permanent water saving rules 2. water efficiency and schools education 3. Choose Tap using our quality water 4. our strategy for using water sensibly. Chapter 6: Being prepared for droughts and water shortages the third of our customer outcomes, focusing on: 1. Melbourne s adaptive framework for droughts and water shortages 2. Our drought preparedness plan 3. Melbourne s annual Water Outlook 4. Our strategy for droughts and water shortages. Chapter 7: Water-related urban amenity for the community the fourth of our customer outcomes, focusing on: 1. Community-based outcomes through integrated water management 2. IWM forums 3. Investment evaluation 4. Our strategy for water-related urban amenity for the community. Chapter 8: Engaging the community and Traditional Owners focusing on: 1. Community engagement 2. Engagement with Traditional Owners 3. Our strategy for engaging with the community and Traditional Owners. Appendices 1. Bulk water supplies 2. Climate change 3. Our customers 'voice' 4. Current demands 5. Sewerage planning 6. Status and actions at existing and planned local sewage treatment plants. Glossary References YARRA VALLEY WATER URBAN WATER STRATEGY

32 32 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

33 STRATEGIC CONTEXT CHAPTER KEY POINTS We, together with the water utilities in Melbourne, have adopted the Water for Victoria vision of: Water is fundamental to our communities. We will manage water to support a healthy environment, a prosperous economy and thriving communities, now and in the future. The key challenges we face over the next 50 years are: population growth the population Yarra Valley Water serves is expected to increase from 1.8 million today to around 3.3 million in 50 years with 70% of the increase located in current urban areas climate change projections indicate a hotter and drier climate over the long-term with more variability including an increased number of storm events with a possible scenario of streamflows into our reservoirs decline, reducing our ability to rely on catchment-based water sources weather variability Victoria has a highly variable climate which produces floods, droughts and bushfires. It is and will continue to be a key risk to our water supplies and infrastructure. The Millennium Drought (1997 to 2009) led to the construction of major augmentation works delivering water-related urban amenity the Millennium Drought had significant impacts on our customers. The Victorian Government's Water for Victoria plan has the aim of building a resilient and liveable Melbourne using an integrated water management approach that includes creating green open spaces (including sporting grounds) that can be used even during a severe drought. These spaces will provide water-related urban amenity, reduce the growing city s heat island effect, and minimise the health impacts of heat stress caused by a warmer climate. We believe Melbourne should become a water sensitive city (resilient, liveable, productive and sustainable) over the long-term. Melbourne was recently assessed as a waterway city on its way to being a water sensitive city. Innovation is crucial in delivering the vision and one of our recent examples is the Kalkallo stormwater harvesting trial IMAGE: Wetlands, Upper Yarra Sewage Treatment Plant YARRA VALLEY WATER URBAN WATER STRATEGY

34 2.1 INTRODUCTION The Victorian Government s recently released Water for Victoria plan provides a foundation for water management for decades to come 3. It is based on this premise: WATER IS FUNDAMENTAL TO OUR COMMUNITIES. WE WILL MANAGE WATER TO SUPPORT A HEALTHY ENVIRONMENT, A PROSPEROUS ECONOMY AND THRIVING COMMUNITIES, NOW AND IN THE FUTURE. We, have embraced this same vision in developing our own Urban Water Strategy. The key challenges we face over the next 50 years are: population growth climate change. weather variability delivering water-related urban amenity. Each of these challenges is detailed in this chapter. Figure 5: Population projections for the next 50 years M 8 7 Millions M M 3.3 M /16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 Melbourne Yarra Valley Water 65/66 3 Victorian Government Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October 34 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

35 2.2 KEY CHALLENGES POPULATION GROWTH Yarra Valley Water currently services a population of 1.8 million people, which is expected to increase to 3.3 million over next 50 years based on Victoria in Future projections 4 refer to Figure 5. According to Plan Melbourne Refresh, 5 70% of this growth will be in infill areas such as the La Trobe and Monash national employment clusters and multi-unit redevelopments, and 30% in green fields development like the northern growth area. 2.3 KEY CHALLENGES CLIMATE CHANGE Climate change is occurring in the Melbourne region. Water for Victoria states 6 : Victoria s temperature has steadily increased since the 1970s and overall streamflows have decreased by around 50 per cent or more over the last 20 years. In recent years, we have had low rainfall overall and catchments are dry. The Millennium Drought brought with it a seasonal shift in rain toward less rainfall during the cooler times of the year, April to October, when runoff is greatest and our storages usually fill. Climate science predicts this is the new reality with more extreme events likely to happen too, such as floods and droughts and bushfires. In Australia, we accept that drought is part of life and many parts of Victoria have experienced drought conditions over the past decade. The Millennium Drought was a wake-up call for many Victorians about taking water for granted, the importance of water availability and the need to build resilience to drought. The Millennium Drought s severity has been linked to human-induced climate change The likely impacts of climate change are described later in the chapter. An overview of climate change evidence and impacts is contained in Appendix 2. We have adopted a strategy to act restoratively (where the degradation of the environment is adversely impacting our quality of life). For example, where there is no carrying capacity left, we will undertake all our activities to ensure these activities will 'do more good, rather than less bad' and to make sure present and future generations will experience an improvement rather than degradation of the environment. As part of this strategy, we are embracing the following three-step energy and environmental approach that will see us investing in: 1. Energy Efficiency programs to reduce greenhouse gas emissions 2. Renewable Energy projects to produce zero emission electricity and avoid grid emissions 3. Carbon Abatement activities that will offset any remaining emissions after steps 1 and 2. We have the following specific goals: we aspire to become energy self-sufficient by 2025 (see waste-to-energy case study in Chapter 4) we pledge to reduce our greenhouse gas emissions by 64% by 2024/25 as an interim target to achieving net zero emissions by The water industry in Melbourne is planning to show a leadership position in Victoria by exploring net zero emissions by COMMITMENTS AND ACTIONS We pledge to reduce our greenhouse gas emissions by 64% by 2025 We will provide a leadership position, as part of the water industry in Melbourne, to explore net zero greenhouse gas emissions by Victorian Government Department of Environment, Land, Water and Planning, 2016, Victoria in the Future 2015: Population and household projections to Victorian State Government, 2015, Plan Melbourne Refresh Discussion Paper, October 6 The State of Victoria Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October, p 8 YARRA VALLEY WATER URBAN WATER STRATEGY

36 LIKELY CLIMATE CHANGE IMPACTS Specific impacts of climate change-driven events will likely include: Heatwaves Heatwaves already significantly impact human health (through increased rates of morbidity), the lifespan and operation of critical infrastructure and the environment. Climate change is projected to increase their number and severity. The January 2009 heatwave caused 374 deaths in Victoria. CSIRO and Bureau of Meteorology predict the number of days over 35 degrees Celsius in Melbourne per annum may increase from an average of 11 days (from 1981 to 2010) to 13 days by Bushfires Changes in climate such as less average rainfall and higher average temperatures by 2030 will likely increase the number of severe fire danger days in Victoria by 20 per cent. This will likely see larger and uncontrollable bushfires and more unpredictable fire behaviour. Drought The frequency of drought will increase with reduced runoff, stream flows, water storage levels and ground water recharge. Natural systems can tolerate drought but more frequent longer droughts will severely impact ecosystems. Drought has significant economic and social impacts. Coastal inundation Even moderate sea level rises and more frequent extreme weather events such as storm surges will increase coastal inundation and erosion. Potential impacts include loss of beaches and coastal land, damage to infrastructure and property, loss of habitat and biodiversity, and negative impacts on liveability and amenity. Sea level rise in Victoria has been measured at mm/year since 1911; and the planning system requires planning to consider sea level rise of 0.8m by Flooding Despite overall warmer and drier conditions, climate change is anticipated to lead to more intense rainfall and flood events. This has significant implications for the design of stormwater infrastructure. As the city develops with more hard surfaces the effects of flooding are magnified. These risks all pose challenges for land use planning and the urban development process. As part of the development of the next Climate Change Adaptation Plan, the Victorian Government is updating climate change science relevant to Victoria. This will outline changes in climate across each region, potential impacts on key industries and how Victorians can, and are, adapting. From Victorian State Government, 2015, Plan Melbourne Refresh Discussion Paper, October, p YARRA VALLEY WATER URBAN WATER STRATEGY 2017

37 2.4 KEY CHALLENGES WEATHER VARIABILITY Melbourne s weather is highly variable, with floods and droughts that are distinct from the impacts of climate change refer to Figure 6. Droughts occur frequently, though multiyear droughts like the 12-year Millennium Drought are less common. The Millennium Drought resulted in a period of severe water restrictions from 2007 to This resulted in: Restrictions (particularly the extended three-year period of stage 3a) having substantial community impacts like: 1. inability to water green spaces such as playing fields, recreational spaces, community gardens 2 impacts on bowling greens, turf racecourses and golf 6. significant costs (particularly for councils) to reinstate sporting grounds and street trees 7. significant costs on individuals to re-establish gardens 8. the viability of some businesses such as nurseries, turf farms, landscapers and commercial car wash facilities due to the restrictions on water use. Substantial investment in new water supply augmentations that made water less affordable. These investments included: 1. the 150GL desalination plant for Melbourne 2. our $100 million investment in water savings in an irrigation modernisation project for 25 GL of water savings 3. the Sugarloaf Pipeline (north-south). 3. loss of trees in streets 4. cancellation or curtailment of football and cricket seasons. Increased social problems due to lack of or reduced sporting activities Figure 6: Annual rainfall anomaly for Victoria ( ) 8 ANNUAL RAINFALL ANOMALY - EASTERN AUSTRALIA ( ) Rain fall anomaly (mm) Year Based on a 30-year climatology ( ) 7 Melbourne was on restrictions from September 2006 and in the first seven months Melbourne moved through four stages of restrictions to Stage 3a and then remained on Stage3a for three years from April 2007 to April Restrictions were progressively lifted from April 2010 to December 2012 when Permanent Water Use Rules were introduced 8 From Bureau of Meteorology website (accessed 21 March, 2017) YARRA VALLEY WATER URBAN WATER STRATEGY

38 Figure 7: Results of assessment of Greater Melbourne Water sensitive city 10% Water cycle city 50% Promote adaptive infastructure Ensure good water sensitive governance Waterway city 97% Ensure quality urban space Increase community capital Drained city 100% Sewered city 100% Water supply city 100% Improve ecological health Improve productivity and resource efficiency Achieve equity of essential services Figure 8: Pathway to a water sensitive city with results of assessment of Greater Melbourne 100% 100% 100% 97% 50% 10% CURRENT Water supply city Sewered city Drained city Waterways city Water cycle city Water-sensitive city Water for potable use Water for nonpotable use Wastewater management Stormwater disposal Pluvial flood risk reduction Stormwater hydrology and quality Improved habitat Ecological health Total water cycle management Integrated water systems Thermal comfort Identity and vision New hydro-social contract Places for social interaction Recreational opportunities Engagement Intergenerational equity Aesthetic (beauty) From Water for Victoria Discussion Paper 38 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

39 2.5 KEY CHALLENGES DELIVERING WATER-RELATED URBAN AMENITY The recently released State Government Plan Melbourne document has as one of its outcomes Melbourne is a sustainable and liveable city and states: The city s growth, in combination with climate change, is testing the resilience of Melbourne s natural and built environment, causing habitat loss and biodiversity decline, higher urban temperatures, reduced rainfall, more frequent and extreme weather events, increased consumption of resources and more waste and pollution. By 2050, Melbourne will need to be a more sustainable and resilient city that manages its land, biodiversity, water, energy and waste resources in a much more integrated way. To respond to the challenge of climate change and ensure Melbourne becomes more sustainable as it grows, a green economy needs to emerge built around renewable energy, environmentally sustainable development and resource recovery. 9 One of Water for Victoria s objectives is the creation of resilient and liveable cities and towns: WE WILL HELP TRANSFORM VICTORIAN CITIES AND TOWNS INTO THE MOST RESILIENT AND LIVEABLE IN THE WORLD. WE WILL INCLUDE ALL ELEMENTS OF THE URBAN WATER CYCLE IN THE WAY WE PLAN AND MANAGE WATER SO THAT VICTORIAN COMMUNITIES CAN CONTINUE TO THRIVE IN ALL CLIMATES. A green city should be a place that people enjoy, but where water is used efficiently. Other aspects of the green city include: a reduced heat island effect though greener, cooler spaces and associated health benefits for customers including the frail and elderly healthy waterways parks, gardens and sporting grounds that people can enjoy. Water for Victoria recognises that an Urban Water Strategy must be informed by local integrated water planning undertaken by agencies and authorities with roles and responsibilities across the five core outcome areas of water supply, sewerage, flood resilience, urban waterway health and urban landscapes and spaces. The strategies should also take an evidence-based approach, using outcomes from the Victorian Climate Initiative to ensure that our future portfolio of water sources is diversified and resilient. A long-term objective is for Melbourne to become a watersensitive city 10 : Water sensitive cities are resilient, liveable, productive and sustainable. They interact with the urban hydrological cycle in ways that provide water security for economic prosperity through efficient use of diverse water resources; enhance and protect the health of watercourses and wetlands; mitigate flood risk and damage, and create public spaces that harvest, clean and recycle water. The Cooperative Research Centre for Water Sensitive Cities has developed an assessment tool to measure the water sensitivity of a city. The results of an assessment of Melbourne s position under each of the six city criteria 9 Victorian Department of Environment, Land, Water and Planning, 2017, Plan Melbourne : Metropolitan Planning Strategy, p CRC for Water Sensitive Cities, 2016, Water Sensitive Cities Benchmarking and Assessment: Greater Melbourne Region, p3 YARRA VALLEY WATER URBAN WATER STRATEGY

40 are shown in Figure 7 and the water sensitivity continuum is shown in Figure 8. Currently Melbourne would best be described as a waterways city due to its: highly reliable supply of fit-for-purpose water for essential daily activities safe and reliable sewerage systems waterway restoration and protection flood management elements of whole-of-water-cycle management. 2.6 FUTURE TRENDS Innovation is crucial to meeting the vision set out in Water for Victoria over the long-term. Innovations on the horizon include: the internet of things where the smart homes with a suite of integrated appliances that are able to be monitored and remotely controlled changes in technology and appliances in homes including: waterless appliances such as washing machines and dishwashers ultra-low-flow toilets urine diverting toilets and composting toilets efficient garden-watering technologies. the Intelligent Water networks including use of digital metering to provide households and businesses with more timely water use information robotic systems that can detect and repair pipe leaks from sensitive pressure changes around them and plug pipes while in use better modelling tools including longer-term predictive weather models. Change is constant, but attempting to forecast technological innovation over 50 years is challenging. Options for future fit-for-purpose water supplies are evolving from a reliance on catchment-based supplies to climate-independent water supplies like desalinated water and recycled water from treated sewage. The use of rainwater and stormwater has increased although the challenge is always cost-effective storage of this water supply source. An example of a current innovative trial is the potential use of stormwater for our drinking water system at Kalkallo. Technologies such as aquifer recharge provide storage options where suitable aquifer systems are available. CASE STUDY KALKALLO STORMWATER HARVESTING TRIAL The Kalkallo stormwater harvesting and reuse pilot plant, located approximately 28km north of the city of Melbourne, will capture and treat around 365 million litres of stormwater harvested each year from a 160-hectare commercial development area. The project was developed and led by Yarra Valley Water and supported by MAB Corporation, Melbourne Water and Hume City Council, and awarded a Federal Government grant of $9.7 million in The plant will treat harvested stormwater to drinking water standard using advanced treatment processes. Initially the treated stormwater will be supplied for non-drinking uses while data is collected, but it could ultimately supply water for drinking, subject to regulatory approvals. The plant could reduce imported water in the commercial area by 90%, decrease urban runoff by 45% and decrease nutrient discharge to the local waterway by 25% above current best practice. It will use 75% less energy than a desalination plant. With stormwater harvesting for drinking water production now considered to be the most effective way to protect the ecological integrity of the ephemeral waterways in the northern growth corridor, the success of this solution has become even more important. The plant is complete and will reach its full harvesting capacity when the surrounding area is fully developed, providing sufficient stormwater runoff. 40 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

41 Other current trends are likely to impact our service provision in the future for example, changes to housing, including reduced lot sizes in new growth areas, and more apartments and multi-dwellings in existing urban areas, may produce different usage patterns to those we ve seen in previous decades. 2.7 LINKS TO WATER FOR VICTORIA We have adopted the vision from Victorian Government s Water for Victoria water plan in developing this strategy. Our Urban Water Strategy is consistent with key outcomes contained in Water for Victoria, including: managing the potential range of climate change impacts and embracing the Water for Victoria action: Our water sector will be a leader in the state s climate change mitigation and adaptation actions, equipped with the most up-todate understanding of climate change and associated risks to water resources. Climate change considerations will be embedded in all operational decisions. recognising the rights of Traditional Owners to use, develop and control water sources under and on Country supporting the development of a resilient and liveable Melbourne based on the Victorian Government s objective by: 1. diversifying our water sources to secure water supplies 2. better urban planning to address key challenges 3. reinvigorating water efficiency programs for Melbourne and regional Victoria 4. making the most of our investment in sewerage 5. including sewage in the context of the urban water cycle to achieve healthier waterways and improve our parks and gardens while continuing to protect public health 6. improving stormwater management for greener environments and healthier waterways 7. better aligning land use and water management for healthy and resilient urban landscapes 8. representing community values and local opportunities in planning 9. putting place-based integrated water management into practice. supporting environmental flows and not requiring qualification of them for urban consumptive use during droughts as occurred during the Millennium Drought incorporating a Drought Preparedness Plan as an addendum to our Urban Water Strategy. YARRA VALLEY WATER URBAN WATER STRATEGY

42 3 OUR CUSTOMERS' VOICE CHAPTER KEY POINTS A joint research program with the water utilities in Melbourne was under taken to gain insights from customers and stakeholders through both qualitative and quantitative market research. The research had three objectives with the conclusions under each outlined below. 1. Understand and define the value customers place on water and urban water management, and the outcomes sought water is of the highest value and seen as essential to life, yet taken for granted our customers do not immediately connect the role water and water utilities have with Melbourne s liveability unless prompted the key water-related outcome sought by our customers is sustained access to clean, affordable water and effective removal of sewage from households and businesses. 2. Understand community expectations for the security of future water supplies for Melbourne. Our customers preferences are: an adaptive planning approach that adjusts to the situation we face Yarra Valley Water to promote sensible water use behaviours not to expect to have restrictions, but if they are required, then to experience mild restrictions (at least) rather than paying more to avoid them increased use of recycled water and stormwater recycling but they expect drinking water to continue coming from the mains supply expansion of desalination capacity to be considered once all other options have been explored and then with extensive customer consultation. 3. Identify a preferred adaptive water-planning framework (Water Security Outlook) that addresses these needs customers were not aware of the existence of the annual Water Outlook and are looking for better, more regular and accessible engagement. there is an opportunity to be more proactive with communications and provide education, guidance, reminders and reassurance about the future. customers support ongoing planning and believe it continues to be needed. 42 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

43 YARRA VALLEY WATER URBAN WATER STRATEGY

44 3.1 INTRODUCTION Our customers are central to our purpose and knowing what is important to them guides our strategy development. The water utilities in Melbourne conducted an extensive program of customer research in 2016 to assist the development and direction of the respective Urban Water Strategies. This is complemented by the insights from our own ongoing customer research program. There were three objectives for the joint research: 1. understand and define the value customers place on water and water management, and the outcomes sought 2. understand community expectations for the availability of future water supplies for Melbourne 3. identify a preferred adaptive water planning framework addressing these needs. The joint research program found many Melburnians were concerned about the city s longer-term water availability. Water was highly valued as it is recognised as being essential to life it is most highly valued for hydration, food production, hygiene, public health and safety (including firefighting) and waste removal. This finding has provided the foundation for our strategy development. The joint research program garnered insights from customers and stakeholders through both qualitative and quantitative market research as shown in Figure 9 below. 3.2 WHAT CUSTOMERS AND STAKEHOLDERS TOLD US Objective 1: Understand and define the value customers place on water and urban water management, and the outcomes sought. Three key insights were found under this objective. WATER IS OF THE HIGHEST VALUE AND SEEN AS ESSENTIAL TO LIFE, YET IS TAKEN FOR GRANTED Customers and stakeholders alike concurred that water is essential to life. Water is most highly valued for its life-giving properties of hydration and food production. Other strong values were hygiene and health services, waste removal, firefighting and public safety. Customers generally related the value of water to drinking and life-giving properties. There were strong themes of using water for hygiene and its necessity in public places and the natural environment for promoting healthy communities and ecosystems. Stakeholders were more likely to view water from a broader community point of view, including social cohesion and physically and mentally healthy communities, economic prosperity and healthy natural environments. In relation to how the community values water and what it means to them, key messages were: Figure 9: Methodology for qualitive and quantitive research FOCUS GROUPS ONLINE COMMUNITIES 3 x online community foums - one per retailer, held over three days. STAKEHOLDER WORKSHOPS 3 x 3-hour stakeholder workshops - one per retailer. QUANTITATIVE SURVEY Online methodology Customer sample Total sample n= 745 Very robust maximum error margin of +/- 3.5% 4 x 3-hour focus groups with: Three groups with residential customers (one per water retailers and 25 participants in total) One group with 1 small and medium business managers / owners from a mix of the three water utilities In total 73 participants 59 residential customers 14 small and medium business managers / owners In total, 45 participants from local government, industry, education, consumer and environmental advocacy organisations. 44 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

45 water is life: it is an essential resource for health, hydration and hygiene water in the community provides opportunities for outdoor activity, healthy people and environment via direct and indirect uses water is a core yet somewhat hidden component of Melbourne s liveability, providing social, economic and environmental benefits TOP-OF-MIND ISSUES: CLIMATE CHANGE AND INCREASING COMMUNITY AWARENESS WITH STRONG FOCUS ON RESTRICTIONS IMPACTS Some felt there had been a tangible paradigm shift in the ways water utilities were seeking to engage. This was a result of the Millennium Drought and changes to the Victorian Government s agenda, with its emphasis on climate change. Some representatives from local councils indicated they would not be able to comply with water restrictions if imposed and would look to find alternatives. There was a sense that there was increasing water usage in the community since the end of the Millennium Drought. This was attributed to a lack of awareness and understanding, the comfort of having a desalination plant and the end of the drought and restrictions. Some mentioned their hope for new technologies for analysing systems with less need to rely on generalised assumptions in decision making. affordable, accessible and clean water is key to our standard of living. Our customers and stakeholders also raised a range of top-of-mind issues detailed in the highlighted box. CONCLUSION The value the community places on water is hierarchical essential uses for water are more highly valued than liveability (water-related urban amenity) aspects. Discretionary uses are the least valued. YARRA VALLEY WATER URBAN WATER STRATEGY

46 OUR CUSTOMERS DO NOT IMMEDIATELY CONNECT THE ROLE OF WATER AND WATER UTILITIES HAVE WITH MELBOURNE S LIVEABILITY (I.E. URBAN AMENITY) WITHOUT GUIDANCE For most participants, water did not spring to mind in relation to liveability, but once they were prompted to consider this, they realised that water was indeed fundamentally important to Melbourne s liveability, embedded in the health of the environment, the economy, and the social fabric. In turn, many felt that they should probably be more careful with water. These findings suggest that work is needed to build recognition of water s role in the city s liveability, and to consolidate perceptions of its value. The community appeared more conscious of embedded water as a concept than in the previous 2012 research, during which it didn t really register with customers. This points to some development of water literacy across the community. It seems that the link between water and liveability is undervalued, which in turn suggests opportunities to engage with the community and stakeholders about water's essential role in a city s liveability, in order to help enhance not only its perceived value, but also water literacy. The community s perceived roles of water in liveability can be grouped into broad social, environmental, economic and luxury categories. Further details on this categorisation can be found in Appendix 3. "LIVEABILITY IS A REALLY BIG ONE FOR THE COMMUNITY ACCESS TO WATERWAYS, CLEAN BEACHES, A HEALTHY GARDEN, URBAN GREENING, THE AMENITY IT PROVIDES, SPORTS FIELDS, PARKLANDS THESE ALL COME UP VERY STRONGLY FOR ANY COUNCIL ANY TIME WE DO A COMMUNITY SURVEY". - STAKEHOLDER CONCLUSION There is a need to create linkages between Melbourne's liveability and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions. 46 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

47 "MELBOURNE IS NOT THE MOST LIVEABLE CITY WITHOUT WATER. IT IS CRITICAL COMPARED TO ALL OTHER INFRASTRUCTURE". - RESIDENTIAL CUSTOMER THE KEY WATER-RELATED OUTCOME SOUGHT BY OUR CUSTOMERS IS SUSTAINED ACCESS TO CLEAN, AFFORDABLE WATER AND EFFECTIVE WASTE MANAGEMENT (I.E. REMOVAL OF SEWAGE FROM HOUSEHOLDS AND BUSINESSES) BUSINESSES) Our customers expect sustained access to clean, affordable water and associated services, but there are concerns these may be compromised by a lack of adequate planning and action to address the impacts of population growth and climate change. Participants in the qualitative research expressed a clear desire for more regular, consistent engagement on storage levels and plans to secure longerterm supplies. Interest in issues to do with water was also quite high in the quantitative research 66% of residential customers surveyed rated their interest at 7 or more out of 10 (6.9 on average). Participants were presented with a range of possible actions to ensure there is adequate water. Results were similar to research in the online survey, and essentially the same as in The most popular option was to make changes at home in order to avoid extra costs preferred by around half of those surveyed online (52% vs. 48% in 2012) refer to Figure 10. Support for making changes at home was higher among qualitative research participants; 69% of residential customers and 65% non-residential, though just 37% of stakeholders felt this way. The results suggest water utilities need to invest in customer engagement on both behaviour changes, and costs. This includes outlining the potential gains that can be made through behaviour changes, as well as the rationale for increasing charges. Further details on this aspect are provided in Appendix 3. Participants were asked what kind of changes they would make at home to reduce their water use. Focus group participants provided examples including recycling their washing or shower water for toilet flushing or garden watering, reducing shower lengths, restricting washing cars and watering gardens, and installing water tanks and more water-efficient shower heads. Online survey participants who indicated they were willing to make changes at home were asked what kind of changes, without prompting refer Figure 11. The themes from the responses were: A wide range of behaviours were mentioned, the most popular being to install rain water tanks or collect rain water (41%), take shorter showers (30%) and use grey water (30%). It is important to keep in mind that some changes were more top of mind than others, and thus will be more obvious to customers as suggestions for behaviours they may wish to adopt. Those behaviours less frequently mentioned e.g. using new technology and efficient devices (16%), using dishwashers and washing machines less (16%) and washing the car less (12%) may be more likely to be perceived as a new idea and thus useful to promote among the broad customer base. Figure 10: Preferred approach to help ensure Melbourne has enough water Q14: APPRECIATING THIS, WHICH ONE OF THE FOLLOWING APPROACHES WOULD YOU PREFER TO HELP ENSURE MELBOURNE HAS ENOUGH WATER TO MEET THE COMMUNITY S NEEDS? 48% 52% More changes at home, not pay extra Some changes at home, pay some extra No changes at home, pay extra No changes at home, not pay extra All residential quantitative participants (2016: n=745, 2012: n=1200) 28% 5% 10% 9% % 3% 7% 9% Really don t know YARRA VALLEY WATER URBAN WATER STRATEGY

48 Figure 11: Types of changes participants willing to make at home TYPES OF CHANGES WILLING TO MAKE AT HOME - UNPROMPTED Use or install rain water tanks 41% Shorter showers / less baths 30% Use recycled / grey water 30% Cut down water use (no further information) 22% No or less lawn and garden watering 21% Water saving technology / more efficient devices 16% Use dishwashers / washing machines less 16% Less car washing 12% Already saving water / minimising use 9% Less toilet flushing / use half flush 8% Use new water saving devices 7% Avoid unnecessary water wastage 5% Adhere to water restrictions 4% Better education / more knowledge on saving water 3% No pools / only recycled or tank water for pools 2% Maintenance of taps / prevent leaks 2% Other 1% All residential quantitative participants who make some changes at home (n=604) Q17: What sorts of changes would you be willing to make at home? CONCLUSION Customers expect sustained access to clean, affordable water and effective waste management. They have a preference for making their own changes to paying more for water Objective 2: Understand the community expectations for the availability of future water supplies for Melbourne. Our customers preferences are: 1. an adaptive planning approach that adjusts to the situation we face 2. Yarra Valley Water to promote sensible water use behaviours 3. a proactive and practical approach to managing water customers want us to further encourage the efficient use of water and not waste it and the majority of customers do no support paying more. 4. increased use of recycled water and stormwater recycling but they expect drinking water to continue coming from the mains supply 5. expansion of desalination capacity to be considered once all other options have been explored and then with extensive customer consultation. AN ADAPTIVE PLANNING APPROACH Customers prefer a proactive approach to water management, which would involve paying a little more on an ongoing basis to prepare Melbourne for times of water shortages (66%), rather than just paying more during shortages, to get through those times (34%). They also liked an adaptive approach, adjusted to the situation at hand. In terms of initiatives, in the shorter term customers prefer a focus on water efficient behaviours and increased development of alternative technologies, with ongoing work to enhance water literacy through schools and digital engagement, and continuing investment in rainwater tanks and alternative sources. Voluntary behaviour campaigns are welcomed (e.g. Target 155), with restrictions applied only when necessary. As in 2011, stakeholders wanted to know more about Melbourne s long-term strategy for water, in order to have greater certainty in their own planning decisions. They expect the water utilities to take an integrated approach to resource 48 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

49 and infrastructure management not only in relation to water but also to energy and land management. After receiving information about the future forecasting there was a general understanding that securing the future water supply would require more than just increased water efficiency and restrictions. Longer term, the community expects a substantial increase in stormwater harvesting and recycled water, and more efficient technologies to be the priorities over any augmentation of desalination. Key concerns around desalination relate to the financial and environmental (energy intensive) costs. CONCLUSION Customers still prefer a proactive and adaptive approach to water management. PROMOTE SENSIBLE WATER USE BEHAVIOURS, AND TO COMMUNICATE THE OUTLOOK AND ASSOCIATED IMPLICATIONS In terms of initiatives, in the shorter term, customers wanted a focus on water-efficient behaviours and increased development of alternative technologies. Once customers received information about future forecasting there was a general understanding that securing the future water supply would require more than just increased water efficiency and restrictions. Short-term expectations of the water utilities included a focus on promoting water-efficient behaviours, supporting technologies and plans, and ongoing research and development to build the city s water resilience over time. CONCLUSION Customers still support a focus on water efficiency and using water sensibly. A PROACTIVE AND PRACTICAL APPROACH TO MANAGING WATER CUSTOMERS WANT US TO FURTHER ENCOURAGE THE EFFICIENT USE OF WATER AND NOT WASTE IT AND THE MAJORITY OF CUSTOMERS DO NOT SUPPORT PAYING MORE The customer research found a distinction in the preferences of customers in relation to restrictions between where there is enough water (as now) and where there is a water shortage. The use of restrictions is regarded as the most popular tool to manage demand in times of shortage with 65% support. Where there is enough water, customers see restrictions as a viable mechanism to manage wasteful behaviours (i.e. demand side behaviours) and not as a mechanism to manage water availability as customers want competent planning to ensure water for the future. The preferred approach of customers in managing the water system is to focus largely on proactively managing behaviours, encouraging water efficiency, continuing to develop and invest in alternative sources and technologies, and improving water literacy in the community. The discussion related to restrictions prompted many participants to mention water restrictions as an important mechanism that should be used to guide consumers on acceptable uses of water in times of shortage. Apart from saying they are already paying too much, many customers conceded that they could certainly do more to conserve water even some of those who didn t want to make any changes suggest they could do more. Regarding the impact of restrictions, it is worth noting that 43% of our customers stated they were not really affected by the most recent drought and customer research has highlighted that there was no real understanding of relative costs and benefits of alternative actions. The main reasons for supporting restrictions is the belief that it is effective in saving water, guiding customers about what to do, and providing a needed form of discipline across the community. Restrictions are well regarded for providing guidance both technically, in terms of how much water use should be limited, and what the social norms are. Without using the term, participants expected that the specific restrictions would be fit for purpose and updated as technical advances are made, environmental conditions change, and social expectations change. Some had experienced restrictions overseas, while others suggested it as a logical approach. Customers mentioned that different types of water would only be acceptable for certain things e.g. recycled water for washing cars, and that the restrictions would be adjusted to suit the available technologies and social norms of the day. This suggests future water restrictions may look very different from those of the past. Further details on customers views can be found in Appendix 3. Unlike customers, quite a few stakeholders were very resistant to a reliance on water restrictions as a core component of the long-term water management strategy especially local council representatives. This was mostly due to a greater sense of the impacts on the urban environment and communities, and the costs to their organisations (e.g. YARRA VALLEY WATER URBAN WATER STRATEGY

50 accessing alternative supplies and rehabilitating assets afterwards). One council stakeholder indicated that there were significant community impacts from not watering sporting grounds during the Millennium Drought including increased levels of crime and domestic violence. CONCLUSION Customers see restrictions as a viable mechanism to manage wasteful behaviours. The preferred approach in managing the water system needs to be focused largely on proactively managing behaviours, encouraging water efficiency, continuing to develop and invest in alternative sources and technologies, and improving water literacy in the community. Councils expressed a desire to continue to water parks and gardens as well as street trees during droughts to avoid community disadvantage and the very substantial cost of having to re-establish them after droughts. This water could be provided from alternative water sources and may be tankered in. Competent planning is key to ensuring enough water into the future. "EVERYONE WOULD HAVE THEIR OWN TANKS OF RECYCLED WATER BY THEN, WOULDN'T THEY?" - RESIDENTIAL CUSTOMER MORE USE OF RECYCLED WATER AND STORMWATER RECYCLING, BUT DRINKING WATER TO STILL COME FROM THE MAINS SUPPLY EXPANSION OF DESALINATION CAPACITY TO BE CONSIDERED ONCE ALL OTHER OPTIONS HAVE BEEN EXPLORED AND THEN WITH EXTENSIVE CUSTOMER CONSULTATION Longer-term expectations included a large increase in stormwater harvesting and recycled water to enable more fit-for-purpose usage, along with more efficient technologies and digital engagement providing more information on water usage: 64% of customers expect us to implement infrastructure that provides recycled water for non-drinking purposes while not the expectation of the majority, 43% of customers would expect us to treat recycled water to a drinking water standard for re-use. "REWARD THOSE WHO RECYCLE STORMWATER AND SHOW THEY CARE ABOUT CONSERVATION WITH DISCOUNTS." - RESIDENTIAL CUSTOMER Participants generally demonstrated limited understanding of the economic costs and environmental impacts and benefits associated with alternative sources, technologies and management solutions. This was highlighted by the surprise some participants expressed regarding the energy costs associated with water. There was still a high level of support for developing alternative sources such as stormwater and recycled water (for non-drinking purposes), without much grasp of potential costs. Many participants felt desalination had created a sense of security and thus had grown to accept it more, despite few having much understanding of the project or recent developments. However, there was limited support for RECYCLING MAKES SENSE. DIFFERENT LEVELS OF PURIFICATION DEPENDANT ON INTENDED USE TO SAVE ENERGY. - RESIDENTIAL CUSTOMER 50 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

51 "IT HELPS IN CONSERVING WATER AND ULTIMATELY THE ENVIRONMENT AS A WHOLE BECAUSE IT WOULD USE LESS ENERGY TO RECYCLE WATER." - RESIDENTIAL CUSTOMER increasing desalination capacity due to some sense of the financial and environmental costs. A few more environmentally aware participants raised specific environmental concerns, mainly around energy intensity. Details on relative water source values from online survey participants associated with which sources they thought would be acceptable for different uses during times of shortages can be found in Appendix 3. CONCLUSION Customers showed little preparedness to pay more to secure future water supplies. In the short-term, customers would like a focus on water efficiency behaviours and increased development of alternative technologies. For the longer-term, customers have a preference for increased stormwater harvesting and recycled water Objective 3: Identify a preferred adaptive water-planning framework (annual Water Outlook) that addresses these needs. The insights from our customers under this objective are: 1. customers were not aware of the existence of the annual Water Outlook and are looking for better, more regular and accessible engagement at least twice a year, preferably quarterly 2. there is an opportunity to be more proactive with communications and provide education, guidance, reminders and reassurance about the future 3. customers support ongoing planning and believe it continues to be needed and think the adaptive framework zone trigger-points could be stricter. CUSTOMERS WERE NOT AWARE OF THE EXISTENCE OF THE ANNUAL WATER OUTLOOK AND ARE LOOKING FOR BETTER, MORE REGULAR AND ACCESSIBLE ENGAGEMENT. Engagement with water issues is high, but knowledge and literacy remain fairly low. There were quite high levels of interest in receiving information about water supply situation in Melbourne, particularly current dam levels, how long supplies were expected to last, and what this means for consumers in terms of expected behaviours and costs to secure supplies. Information about what is being done to secure supplies was sought, including what customers can do to improve their water efficiency. This information was sought to allay concerns while also building water literacy and value perceptions over time. YARRA VALLEY WATER URBAN WATER STRATEGY

52 There was virtually no awareness of the current Annual Water Outlook. When shown the document, most participants thought it looked uninviting, dense, technical and outdated. Participants called for a far more concise and visually appealing document with more charts and diagrams, photographs, interactivity and simplified text. "I THINK THE LAYOUT AND THE CHARTS ARE A MORE CORPORATE MANAGEMENT STYLE. I FIND BIG BLOCKS OF TEXT UNAPPEALING AND DON'T QUICKLY CONVEY INFORMATION. SOME OF THE LANGUAGE IS ALSO VERY TECHNICAL - "MODELLING AND DEMAND SCENARIOS", AND MAY NOT APPEAL TO THE GENERAL PUBLIC." - RESIDENTIAL CUSTOMER CONCLUSION Customers desire more regular, consistent engagement on water availability and plans to secure longer-term water supplies. The current Annual Water Outlook document needs to be re-designed as part of a proactive and engaging way of managing water availability, and to help build water literacy and allay community concerns. SOME PARTS ARE GOOD AND OTHERS VERY UNINTERESTING OR HARD TO READ, E.G. ALL VISUALS CHARTS, MAPS AND GRAPHS ARE GOOD. HOWEVER, THE FIRST PAGE IS TOO WORD INTENSIVE AND IN A FONT THAT IS TOO HARD AND UNINTERESTING TO READ. IT NEEDS VISUAL APPEAL ESPECIALLY AS IT IS THE START OF THE DOCUMENT. -RESIDENTIAL CUSTOMER AN OPPORTUNITY TO BE MORE PROACTIVE WITH COMMUNICATIONS AND PROVIDE EDUCATION, GUIDANCE, REMINDERS AND REASSURANCE ABOUT THE FUTURE In general, participants wanted simple, straight forward information, with the ability to look at more detail (i.e. online) if they were interested. Most qualitative research participants wanted this information displayed in a prominent location in order to grab their attention. Importantly, stakeholders from local councils offered to include water availability information in their regular newsletters to ratepayers. To quantify community preferences for receiving information, online survey participants were asked what would be the best ways for them to hear about the future outlook for water in Melbourne. As shown in Figure 12, direct communication such as information on bills (60%) or with bills (33%), or s (49%) was preferred, followed by mass (television: 45%) and social media (29%). CONCLUSION Customers want to hear about water availability from a range of different channels, especially direct communication. 52 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

53 Figure 12: Best ways to hear about the future outlook for water in Melbourne BEST WAYS TO HEAR ABOUT THE FUTURE OUTLOOK FOR WATER IN MELBOURNE Information on your bill 60% 49% Television 45% Information flyers delivered with your bill 33% Social media eg. Facebook, Twitter 29% Water company website 23% Newspaper ads eg. The Age, Herald Sun 20% Ads in the local newspaper 18% Community information centres 11% Informations stalls at loval events / centres 8% Information flyers seperate from the bill 6% SMS 6% Other 2% YARRA VALLEY WATER URBAN WATER STRATEGY

54 CUSTOMERS SUPPORT ONGOING PLANNING AND BELIEVE IT CONTINUES TO BE NEEDED. Participants were broadly supportive of the water outlook zones and corresponding actions refer Figure 13. However, in keeping with a proactive approach, many thought the trigger points for the adaptive framework zones needed to be tighter. Qualitative research participants were asked to comment specifically on the three water outlook zones, the actions in each zone, and whether they thought they were acceptable and reasonable. The zones were fairly easily understood and thought to add value in terms of both demonstrating the proactive management of the water utilities, and the range of possible options. Many were pleased to see evidence of forward planning and felt the actions proposed within each zone were generally acceptable, with a few participants preferring to defer to the experts and trust that they would get it right. However, there were some specific areas that participants had feedback on, as follows: many were supportive of actions that made the most of natural resources e.g. recycling and storm water some thought the cut-off points for the zones should be more conservative, with calls to change the upper end of the medium zone to at least 60-70% and the low zone to around 40% although many participants expressed hope that Melbourne would never reach this level, quite a few thought the actions in the low zone needed to be stronger. They struggled to articulate what could specifically be done though, demonstrating a lack of knowledge Many were supportive of the stricter restrictions in the low zone but several expressed unprompted opposition to the Sugarloaf (North-South) Pipeline. A couple specifically said that this would be taking resources away from farming and production in regional Victoria. several participants thought that the development of large-scale supply sources should begin in the high zone quite a few thought that the rebates for water efficient appliances should be offered in all three zones a few participants felt that water efficiency programs and education should be ongoing regardless of the current situation. This finding shows the importance of articulating that the actions taken in a particular zone are not mutually exclusive stakeholder workshop participants and consumers alike felt that the zones should be more action focused so that communities and individuals know what they need to do, rather than focusing solely on the actions of the water utilities. CONCLUSION Customers were broadly supportive of the Water Outlook zones but the trigger points could be tighter. 54 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

55 Figure 13: Water Outlook actions in each zone Storage 100% 54% 31% HIGH ZONE Ongoing planning for long term "augmentations" (i.e. development of large scale infrastructure to increase water supply) Ongoing delivery of alternative water sources (e.g. recycled, stormwater) Ongoing water efficiency programs (e.g. Target 155, water audits) Consider a desalinated water order when storage approaches the Medium zone MEDIUM ZONE Whole of Melbourne actions beyond those at the local water utility level (e.g. rebates for efficient appliances, new funding opportunities for businesses) Drought Preparedness Plan commences Full use of desalinated water (i.e. plant used to its full capacity of 150 Gigalitres per year) Demand interventions (including considering Stage 1 / 2 restrictions) Commence development of new large-scale supply sources LOW ZONE Drought Preparedness Plan continues Implement stage 3 / 4 restrictions Implement emergency supply actions beyond restrictions if needed Sugarloaf (North-South) Pipeline operated (i.e. water pumped from Victoria's north) Supply augmentations continuing KEY INSIGHTS We have learned from our customers that: water is extremely highly valued people see it as essential to life and we have a responsibility to ensure its available, affordable and clean the community does not connect water with Melbourne s liveability (i.e. urban amenity) unless prompted there is a need to create linkages between Melbourne's liveability and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions. the key water outcome sought by the community is sustained access to clean, affordable water and effective waste management our customers prefer: 1. an adaptive planning approach that adjusts to the situation we face 2. Yarra Valley Water to promote sensible water use behaviours 3. a proactive and practical approach to managing water customers want us to further encourage the efficient use of water and not waste it (focussing on behavioural change and other similar measures to those that were implemented during the Millennium Drought). The majority of customers do not support paying more the most popular option is to make changes at home in order to avoid paying anything more increased use of recycled water and stormwater recycling but they expect drinking water to continue coming from the mains supply 4. expansion of desalination capacity to be considered once all other options have been explored and then with extensive customer consultation. customers were not aware of the existence of the Annual Water Outlook and wanted to be kept informed about the outlook on a more regular basis (at least twice a year, but preferably quarterly) the community wants better, more proactive and more engaging multi-channel communications that are scaled to the situation customers think the adaptive framework zone trigger-points could be tighter. We have taken these customer beliefs and preferences into account when developing our Urban Water Strategy, and will continue engaging the community this way. YARRA VALLEY WATER URBAN WATER STRATEGY

56 56 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

57 4 OUR LONG- TERM WATER AVAILABILITY & SEWERAGE CAPACITY CHAPTER KEY POINTS WATER AVAILABILITY Barring major emergencies such as an extreme drought or catchment bushfire, we will provide water supplies without restrictions to our customers. We expect that our customers will continue to use and enjoy water efficiently. There are many different scenarios for Melbourne s water availability over next 50 years and we will be adaptable to address any of these possibilities. These range from needing to augment Melbourne's water supply system by 2020 to having sufficient water. Increased use of recycled water and stormwater recycling is planned. If we have excess water resources, we plan to trade water to other urban water utilities to avert a major water supply augmentation. SEWERAGE CAPACITY Providing sewerage services to our customers is an essential part of our role in the community. As with water, we will be adaptable to the challenges and opportunities ahead. Significant investment will be required in new and upgraded sewerage infrastructure to cater for population growth, impact of climate change (particularly greater weather variability), replacement of aging infrastructure, demand for fit-for-purpose recycled water and changes in environmental requirements. We have around 12,000 properties in our service area that are not connected to the sewerage system but present a risk to the environment. We have worked with councils to prioritise these areas and are currently working with them and communities in the higher priority areas to develop suitable modern sewerage systems. The opportunities presented by resource recovery are of increasing interest to Yarra Valley Water. Our ten local sewage and recycled water treatment plants provide significant opportunities particularly through being able to become energy self-sufficient by IMAGE: Sam Louise (left) and Tavake Harriss, Tunelling Labourers, John Holland Contractors. Preparing services for next pipe in long tunnel drives, Amaroo Main Sewer Tunnel project YARRA VALLEY WATER URBAN WATER STRATEGY

58 PROVIDING CONFIDENCE IN OUR LONG-TERM WATER AVAILABILITY & SEWERAGE CAPACITY 4.1 MANAGING WATER AVAILABILITY IN OUR CITY OVER THE NEXT 50 YEARS Most of Melbourne s water currently comes from reservoirs in our water supply catchments. In , the Victorian Desalination Project is producing 50 GL (50 billion litres) of water to supplement the water supply in Melbourne, and is able to produce up to 150 GL (150 billion litres) per year. Smaller volumes of groundwater, recycled water, stormwater and rainwater are also used to supply the needs of Melburnians. Our increasing population means higher demand, while climate change is likely to reduce streamflows to Melbourne s traditional catchment storages. Over the next 50 years, the population in our service area is forecast to nearly double from 1.8 million people today to around 3.3 million in While we expect water efficiency to improve, we will still need to source additional water from a more diverse range of sources than the traditional dam-based catchment sources. 4.2 WATER AVAILABILITY LEVELS OF SERVICE The water utilities in Melbourne have a consistent approach to managing water availability to Melburnians. Table 1 below outlines the updated approach to managing water shortages to reflect the current population, demand and stream flow projections. The adaptive framework has three zones based around storage levels at 30 November each year at the end of the winter/spring dam filling period: the low zone where there is a restricted emergency supply. We plan to avoid being in the low zone the medium zone where there is up to five years of supply to enable Melbourne to manage a drought event like the Millennium Drought, when Melbourne s storages rapidly declined. In this zone, the Victorian Desalination Project will be operating at full capacity (150 GL (150 billion litres) of desalinated water per year) the desalination plant can currently meet about one-third of Melbourne s annual water requirements. Table 1: Melbourne s adaptive framework for managing water availability Zone Descriptor Action point at 30 November each year High Medium Low (Storages are managed into avoid moving in this zone) Optimising supplies - More than five years supply available - Use of the Victorian Desalination Project as required to minimise moving into medium zone Take Action - Up to five years of supply available (includes operating the Victorian Desalination Project at full capacity) Emergency circumstances - Two years of supply available with restricted demand (includes full use of the Victorian Desalination Project) Melbourne s storage levels greater than 60% full Melbourne s storage levels less than 60% and greater than or equal to 40% full Storage levels less than 40% full 58 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

59 the high zone where water supplies are optimised with some use of desalinated water from the Victorian Desalination Project. We plan to generally stay within this zone. Since the Millennium Drought restrictions were removed in 2012, Melbourne s minimum level of service for water availability has been based on maintaining Melbourne s storages above the low (emergency) zone except for extreme circumstances (force majeure events). During these emergency times, we will consider use of strict water restrictions and the ability to transfer water from Northern Victoria via the Sugarloaf (North-South) pipeline (when storages are below 30% full). We understand Melburnians place a high value on water and there is a high acceptance of mild restrictions among residential customers (with compulsory restrictions preferred where required) refer to Chapter 3 for details. Generally, our customers feel they are able to manage restrictions, such as those during the Millennium Drought, provided all residential customers face the same discipline. We are also aware that severe water restrictions can impact on communities. For example, the Millennium Drought caused: the inability to water open green spaces such as playing fields, recreational areas, community gardens, bowling greens, turf racecourses and golf courses in some cases, an inability to play on dry sporting grounds which contributed to social problems councils having to spend considerable amounts of money to restore community assets (such as sporting grounds and street trees) when the drought ended direct impacts on businesses such as nurseries, turf farms, landscapers and commercial car washes. Table 2 below shows the estimated savings from the four stages of restrictions beyond those currently being achieved from permanent water use rules 11. Given the high community costs for savings of up to 15% of our total water use with Stage 4 restrictions, severe restriction levels (Stages 3 and 4) have been restricted to emergency situations and are included for use in the low zone. Stages 1 and 2 of water restrictions have been included as possibilities for use in the medium zone with likely water savings of up to 7% of total water use. Given the modest water savings, it is likely that a community-based behaviour change campaign supplemented with a rebate program may provide greater water savings. The appropriate program will be considered at the time the medium zone Take Action program is required to conserve water. 4.3 MANAGING WATER SUPPLY DEMAND BALANCE 50-YEAR OUTLOOK CURRENT DEMAND Yarra Valley Water s demand comprises residential, nonresidential and non-revenue water uses refer to Figure 14. Residential (household) use comprises nearly 70% of our total water use. Non-residential water use (19%) includes water used by businesses, governments and councils. Non-revenue water (12%) is water not billed to customers because it is lost through operational losses such as leaks, used for firefighting or stolen. Total water use (residential, non-residential and non-revenue water) is lower than consumption levels in the early 2000's (Figure 15). Per capita, total water use by Yarra Valley Water s customers has declined from 358 litres per person per day in to 242 litres per person per day in a 32% reduction (Figure 16). This double reduction has been the result of: more water-efficient behaviours and appliances investment in alternative water projects changes in the style of developments with smaller gardens and more apartment living changes in gardens and sporting ovals to be more drought resistant, e.g. use of warm season grasses. Table 2: Estimated savings from restrictions Stage 1 Stage 2 Stage 3 Stage 4 Estimated saving beyond Permanent Water Use Rules. (% of total water use) 2-3% 5-7% 8-12% 14-16% 12 The benefit of Permanent Water Use Rules is estimated to be between 1-2% of total water use YARRA VALLEY WATER URBAN WATER STRATEGY

60 Permanent Water Use Rules were introduced on 1 December 2012 to help manage our water efficiently and satisfy community concerns about water waste following the lifting of restrictions. These rules require the community to apply common sense to their everyday water use. The rules do not apply to the use of recycled water, stormwater, rainwater or greywater, except where it is supplemented by drinking water. Appendix 4 contains more detail on the current demand for residential, non-residential and non-revenue water. WATER EFFICIENCY AND SCHOOLS EDUCATION Our customers have maintained a culture of saving water since the removal of restrictions in Residents, schools, councils and businesses alike are using alternative water sources, such as rainwater, stormwater and recycled water. Permanent Water Use Rules encourage these behaviours. The main water efficiency program currently in place is Target 155, a voluntary program that encourages households to aim for 155 litres per person per day. Another key initiative is the Schools Education program. Further details on current and future water efficiency programs are in Chapter 5. BUSINESS CUSTOMERS We currently provide assistance to businesses to improve water efficiency including: identification of leaks information on how much water comparable businesses use My Cooling Tower which provides technical information, best practice guidelines and case studies to help businesses improve the water efficiency of cooling towers assistance with obtaining grants and rebates from various government agencies. Figure 14: Yarra Valley Water s water use by segment Non-revenue water 12% Non-residential 19% Residential 69% 60 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

61 Figure 15: Yarra Valley Water s total water use (in megalitres) YARRA VALLEY WATER TOTAL WATER USE 250, , ,000 ML 100,000 50,000 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Water restrictions Water restrictions Permanent Water use Rules Figure 16: Yarra Valley Water s total water use per capita (in litres per person per day) YARRA VALLEY WATER TOTAL WATER USE PER CAPITA Litres /01 01/01 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 YARRA VALLEY WATER URBAN WATER STRATEGY

62 Ram Gurung, TBM Pilot, John Holland contractors, operating "Summer" Tunnel Boring Machine DEMAND OUTLOOK Our demand scenarios for the 50-year outlook are based on the following drivers: population growth long-term trends in water use by households and businesses: residential water use is projected to decline from 161 litres per person per day 12 in to 127 litres per person per day over next 50 years 13 a 21% reduction. We have adopted three demand scenarios. The baseline (or medium) demand scenario uses Victoria in the Future population projections to 2051, which are then extrapolated out to The other two scenarios low and high demand scenarios have been created from the medium demand scenario using ABS projections refer Table 3 below for details. 15 POPULATION GROWTH As mentioned earlier in Chapter 2, the population in our service area is projected to increase from 1.8 million to 3.3 million over next 50 years at an average growth rate of 1.2% based on Victoria in the Future projections. This is a slightly slower rate than Melbourne overall, where the population is expected to nearly double from 4.6 million to 9 million. Around 70% of the increased population is expected to settle in infill areas for example, through the redeveloped La Trobe and Monash National Employment Clusters and other small-scale redevelopments. The balance of 30% is projected to settle in new suburbs. WATER USE CHANGES To predict demand changes over a 50-year outlook period, we must make assumptions about how the efficiency of water usage will change. Since this efficiency gain is reliant on technological change it is unrealistic to expect certainty in predictions over such an extended outlook period. For this reason, high- and low-demand scenario forecasts, varying the efficiency gain (as well as population growth rates), were established in addition to a medium-demand forecast. Efficiency gains in clothes washers and toilets, and to a lesser extent showers and evaporative coolers, will contribute to decreasing per-person demand as more efficient appliances replace older models (Figure 17). Multi-residential dwellings (flats, units and apartments) are projected to constitute an increasing share of dwelling stock. The share of multi-residential dwellings is forecast to increase from 24% in to 44% in , in turn contributing to declining per-person demand. Residential share of total demand is forecast to increase driven by the forecast increase in serviced population (Figure 18). Climate change was also built into demand forecasts, and has a relatively small effect on total demand because it influences only seasonal demand i.e. landscape irrigation, evaporative cooling and pool use which accounts for only around 15% of total demand. The overall effect of a two-degree warming is forecast to increase demand by 3.2%. 13 Total water use (residential, non-residential and non-revenue water) is 242 litres per person per day while residential (household) water use is 161 litres per person per day 14 Based on median demand scenario 15 Department of Environment, Land, Water and Planning, 2015, Victoria in Future 2015 Population and Household Projections 16 Australian Bureau of Statistics, ABS Dataset: Population Projections by Region, YARRA VALLEY WATER URBAN WATER STRATEGY 2017

63 Figure 17: Projected change in residential (household) water use Showers 31% Landscapes 12% Landscapes 12% Other end uses 8% Baths 5% Baths 5% Other end uses 9% Baths 6% Other end uses 8% Landscapes 11% 2015 / / 41 Showers 31% 2065 / 66 Showers 31% Toilet 15% Clothes washer 15% Taps 15% Taps 19% Taps 18% Clothes washer Clothes washer 10% 11% Toilet 14% Toilet 14% Figure 18: Projected change in segments 18,881 13% 17,337 10% 20,765 10% 154,224 74% 29,737 17% 32,658 16% 27,906 18% 2015 / 16 (ML & %) 2040 / 41 (ML & %) 2065 / 66 (ML & %) 105,903 69% 126,297 73% Residential Non-residential Non-revenue water Residential per-person water use is forecast to decline from the current weather-normalised volume of 161 litres per person per day to 127 litres per person per day in 2066 (Figure 19) under the medium demand scenario a reduction of 35%. This is due to the increased share of multi-residential dwellings in housing stock (where average use is 40% lower than a separate dwelling due to smaller or no gardens and lower household size 16 ), and expected increased efficiency of in-house appliances. The most significant water efficiency gains (shown in Figure 19) are predicted to occur in clothes washing, based on the assumption that 5.5 and 6 star appliances 17 will replace the current generation of 4.5 star-rated clothes washers. This projected reduction is on the back of a 32% reduction in residential water use from the early 2000's when water use was 246 litres per person per day. 17 This reduction is supported by billing data over the last 3 years average annual usage for houses has been 178 kl compared to the average for other dwellings of 113 kl - this is a 37% difference which has been rounded to 40% 18 Star rating refer to the Water Efficiency Labelling Scheme (WELS) which rates water using appliances with a water efficiency star rating from 0 to 6. YARRA VALLEY WATER URBAN WATER STRATEGY

64 Figure 19: Projected residential (household) water use (litres per person per day) YARRA VALLEY WATER RESIDENTIAL AVERAGE (LITRES / PERSON / DAY) Litres/Day /01 05/06 10/11 15/16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 Medium Demand High Demand Low Demand On a total water use basis (residential, non-residential and non-revenue water), projected water use is expected to decline from 229 litres per person per day in (or 151GL in total water use, weather-normalised) to 171 litres per person per day in (or 208GL in total) as shown in Figure 20. Figure 20: Projected total water use residential, non-residential and non-revenue water (litres per person per day) YARRA VALLEY WATER TOTAL DEMAND (LITRES / PERSON / DAY) Litres/Day /01 05/06 10/11 15/16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 Medium Demand High Demand Low Demand 64 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

65 DEMAND SCENARIOS As mentioned, we have adopted three scenarios to reflect low, medium and high levels of projected demand. The low and high scenario forecasts are determined from the medium forecast by varying the efficiency gains and the rate of household and population growth. The medium forecast uses Yarra Valley Water s end-use modelling capability to build in efficiency gains in appliances such as clothes washers, toilets, showers, evaporative coolers and dishwashers. This results in an overall efficiency gain, which was decreased for the high-demand scenario and increased for the low-demand scenario by 50% respectively. Once the medium growth forecast was determined the high and low growth scenarios were established by determining the ratio of ABS Series A (high) and Series C (low) population projections to the ABS Series B (medium) projections and applying those ratios to the VIF 2015 medium projections. An overview of the assumptions behind the ABS Series A, B and C projections is shown in Table 3. The high and low growth scenarios also varied the share of new dwellings that would be multi-residential with higher growth having a higher proportion of multi-residential dwellings relative to the low growth scenario. Figure 21 shows the 50-year outlook for these three scenarios. The medium-demand forecast used the population and household growth forecast from Victoria in the Future Table 3: ABS population projections assumptions (ABS Population Projections ) Zone Series B (Medium) Series A (High) Series C (Low) Region Melbourne Melbourne Melbourne Age All ages All ages All ages Fertility Assumption Medium fertility High fertility Low fertility Mortality Assumption Medium life expectancy High life expectancy Medium life expectancy Net overseas migration Medium net overseas migration High net overseas migration Low net overseas migration Net interstate migration Medium interstate flows Large interstate flows Small interstate flows Figure 21: :Projected Yarra Valley Water demand for water under low, medium and high demand scenarios 300, ,000 HIGH 200,000 MEDIUM LOW ML 150, ,000 50, /16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 YARRA VALLEY WATER URBAN WATER STRATEGY

66 4.3.3 CURRENT WATER SUPPLY As indicated in Chapter 1, Yarra Valley Water holds bulk entitlements from four systems (Table 4). These bulk entitlements are rights to the use and supply of water from particular catchments or sources granted by the Minister for Water. We also obtain an annual allocation of bulk water from having these rights. Table 4: Yarra Valley Water's bulk entitlements Bulk Entitlement Greater Yarra System Thomson River pool Bulk Entitlement Volume (ML) Total System Volume (ML) Our Bulk Entitlement as proportion of total system (%) 219, , % 92,328.8 Desalinated water 56, , % 0 Goulburn system 10,942.0 High Reliability: 944,610 Low Reliability: 413, % 8,015.3 Our water allocation based on inflows/water savings and our BE (ML) River Murray 7,966.6 High Reliability: 1,220, % 5,055.2 Low Reliability: 300,095 TOTAL 295, , /16 bulk water use 159,762 With each bulk entitlement, we obtain an annual allocation related to our bulk entitlement volume as follows: Greater Yarra System Thomson River pool: share of net monthly net inflows to the Greater Yarra system storages and Thomson Reservoir based on our proportion of the total pool Desalinated water: share of the annual water order placed by the Minister for Water with Aquasure for delivery from the Victorian Desalination Project in proportion to our bulk entitlement volume Goulburn system: one-ninth share of the audited annual water savings for the preceding financial year from Stage 1 of Goulburn Murray Water s Connections Project River Murray: one-ninth share of the audited annual water savings for the preceding financial year from Stage 1 of Goulburn Murray Water s Connections Project. We are able to carry over any stored water from one year to the next, in accordance with the respective carryover rules. Our Statement of Obligations (System Management) restricts our use of our Goulburn system and River Murray entitlements in Northern Victoria, via the Sugarloaf pipeline, to times when Melbourne s storages are below 30% full. This means in nearly all years we are not able to transfer water from Northern Victoria to Melbourne we therefore plan to continue to sell our annual Northern Victorian water allocations on the Northern Victorian water markets when we are not able to transfer water to the south. In the year (a dry year), our allocation from the Greater Yarra system Thomson River pool was 92,329ML but our bulk water use was 159,762ML. The deficit was supplied by stored water carried over from previous years and stored in the Melbourne storages. With each bulk entitlement, there are ongoing annual financial obligations to pay for the costs of harvesting and storing of water levied by either Melbourne Water (Greater Yarra System Thomson River pool and desalinated water) or Goulburn Murray Water (Goulburn system and River Murray). These financial obligations are related to the entitlement volume. Water for Victoria has outlined two reviews that have the potential to impact our bulk entitlements and we plan to actively participate in these reviews: a long-term water resource assessment for southern Victoria in 2018 this review will determine whether longterm resource availability has changed, and if so, whether there has been a disproportionate impact on water available for consumptive use or the environment a review of the Central Region Sustainable Water Strategy commencing in late 2016 sustainable water strategies to identify and manage threats to the supply and quality of the state s water resources, and identify the potential to improve waterway health. 66 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

67 4.3.4 WATER SUPPLY OUTLOOK Our supply scenarios for the 50-year water outlook have been developed based on the following drivers: potential climate change impacts, including reduced inflows to Melbourne s catchment-based storages increased use of alternative water sources CLIMATE CHANGE As indicated in Chapter 2, over recent decades Victoria s climate has become drier and warmer. The recent Millennium Drought was the worst drought Australia has experienced on record. Climate change is expected to bring greater variability with more extreme events including drought, floods and heatwaves, which can increase human and environmental demand for water, impact productivity, and also threaten water infrastructure.. In Water for Victoria, the Victorian Government has nominated the water sector to be a leader in climate change adaptation. The Department of Environment, Land, Water and Planning has produced a set of guidelines 18 which indicate that there has been a material change to Victoria s climate since 1975 and that the period from 1975 should now be used as the baseline upon which to measure change. The guidelines specify that we should adopt four scenarios in developing our supply outlook for the next 50 years. These are: The historical streamflow into Melbourne's four major harvesting storages and the four scenarios are shown in Figure 22. ALTERNATIVE WATER SOURCES In 2017, Melbourne will be receiving its first 50GL desalinated water order from the 150GL Victorian Desalination Project. As Melbourne s population grows we expect this facility to become a bigger player in the supply system. We project that our water sources will, increasingly, diversify beyond the drinking water from the Melbourne water supply system over time (Figure 23). Recycled water is mandated to around 100,000 new homes in our growing northern suburbs area which will require around 6 GL at full development (see the case study in Chapter 7) and is being used in an infill development area at Doncaster Hill (see the case study in Chapter 8). The use of recycled water is expected to increase over time, though our services will continue to rely on the Melbourne water supply system. Our current plans project the use of around 8 GL of alternative water sources (recycled water and rainwater) by We are aiming to contribute a much larger quantity over next 50 years where businesses cases demonstrate value to our customers. High, medium and low impact climate change scenarios Step change from 1997 onwards Figure 22: Historical streamflows into Melbourne s four major harvesting storages Streamflow GL/a Observed Historical Average Current Climate Average (post 1975) Step Change Scenario ( ) Department of Environment, Land, Water and Planning, 2016, Guidelines for assessing the impact of climate change on water supplies in Victoria YARRA VALLEY WATER URBAN WATER STRATEGY

68 We have investigated the use of stormwater in our existing service area. A key challenge with weather-dependent water sources like stormwater is how to provide a reliable supply for consumptive use storage during low rainfall periods. The Coburg stormwater harvesting proposal case study and the Blackburn Lake catchment study demonstrate the challenges we face (refer case studies below). While theoretically possible, the implementation challenges of these types of projects raise questions about whether change can occur with in existing urban water infrastructure. Our planning processes use an integrated planning approach, considering both the specific place-based context as well as the connections and interactions with broader water and sewerage networks. Using this approach, we can work with stakeholders to determine the optimum fit-for-purpose water supply mix in our service area SUPPLY SCENARIOS As mentioned, we have used four supply scenarios based on climate change impact scenarios: low, medium and high impact climate change scenarios from the 1975-to-now baseline a step change scenario from 1997 to now. The scenarios consider the existing water supply system and assume no initiatives from the water industry either through commissioning new supplies or investing in water-efficiency programs. The relative merits of intervening to manage the water supply and demand balance are discussed later in this strategy. Figure 24 shows the 50-year supply outlook for Yarra Valley Water under these four scenarios. CASE STUDY COBURG STORMWATER HARVESTING PROPOSAL Yarra Valley Water developed a proposal for a stormwaterharvesting project to supply the Coburg Principal Activity Centre with recycled water. Water was to be sourced from two large stormwater drain, reducing the impact of stormwater runoff on local waterways and saving 190 million litres of drinking water per year. The initial cost for the project was estimated at $12.07 million with the Commonwealth Government contributing $6.035 million. When the detailed design phase was completed, the cost rose significantly due to: underground storage costs being higher aesthetics being more onerous and costly. After reducing the requirements to a $14.6 million project and seeking additional funding, the project was still not viable. One of the challenges with climate-dependent water sources like stormwater, is that to provide a reliable supply for consumptive uses we need to build large storages to make up for low rainfall periods. Storage was a significant component of the cost, and the plan to cover it and put it underground increased the cost to 50% of the total project cost. In the future, rather than trying to hide our assets underground at significant cost, there may be opportunities to integrate these assets into the planning of urban renewals and make them community assets. 68 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

69 Figure 23: Yarra Valley Water projected water use by source 200, ,000 Note: excludes stormwater use and rainwater use in existing installations as at 2015/16 ML 160, , , ,000 15/16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 Potable Recycled New Rainwater IMAGE: Yarra Valley Water Board visits Aurora Class A Recycled Water Plant YARRA VALLEY WATER URBAN WATER STRATEGY

70 CASE STUDY BLACKBURN LAKE CATCHMENT STUDY The study was initiated to determine if it was possible to change urban water infrastructure in a city to deliver more sustainable outcomes. The study was undertaken in the Blackburn region located in the south-eastern suburbs of Melbourne. The study consists of residential properties and is considered representative of suburbs facing the 'bow wave' of future infrastructure renewal. The study area was selected as it represented the most favourable location for an alternative configuration, because it has a natural lake, and ageing infrastructure. Eleven alternative infrastructure options were studied. Three were found to deliver more sustainable results and be economically viable under certain conditions: stormwater treated to drinking standards to supply all demands requires a service area of 2,200 residential properties sewer mining to supply non-drinking water demands requires a larger service area of 4,100 properties to return a positive NPV or a nitrogen price increase of 17%, which equates to an increase from $2,200/kg to $2,560/kg. stormwater to supply drinking water demands combined with sewer mining to supply non-drinking water demands became viable when the area serviced was 6,000 properties. The key conclusions from this study were: more sustainable options do exist but they require additional infrastructure which costs more when externalities are included, three were found to be still economically viable while theoretically possible, the translation into practice is still unproven and would require: community acceptance to build a local treatment plant planning ordinances to require renovations and new buildings to put in specific internal plumbing if recycled water were to be used someone to carry the investment cost until demand was high enough to make it viable policy change, if stormwater were to be treated for drinking water use. The study was completed in 2011, and at that time, none of the stakeholders supported pursuing it further. 70 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

71 IMAGE: Ian Gregory, Ventia operator, water main flushing using ice pigging method WATER SUPPLY-DEMAND BALANCE A critical element of this strategy is recognising that supply and demand can vary significantly over 50 years under a range of different future scenarios. The strategy does not forecast the future, but identifies plausible scenarios and considers how best to meet the needs of the community in the face of this uncertainty. Above, in sections and 4.3.5, we presented a number of demand and supply scenarios. Figure 25 shows the demand and supply balance under these scenarios for Yarra Valley Water. These provide a picture of possible future water needs for Yarra Valley Water s customers. Figure 24: Yarra Valley Water projected supply under four scenarios Average Annual Volume (GL/Yr) Year beginning July Low climate change Medium climate change High climate change Post-1997 step climate change YARRA VALLEY WATER URBAN WATER STRATEGY

72 In summary, the graph indicates the following: using high-demand and high climate change scenarios, we may be required to augment water supplies by 2031 this will also require around 140 GL of extra supply by 2066 using a medium-demand scenario and a medium climate change scenario, we may need to augment by 2053 using a low-demand scenario and low climate change impact scenario, we will have sufficient water for the next 50 years. This variability shows a need for an adaptive approach to managing our water availability over the next 50 years to ensure we meet the needs of our growing community. This approach will include diversifying our water sources, for example, through including rainfall independent water supplies in our mix. We plan to continue to promote efficient use of water and diversify our dam-based catchment water supply system with: recycled stormwater and treated sewage effluent in places where it is shown to be feasible an example is our growing northern suburbs where we have mandated recycled water for 100,000 new homes in the northern growth area Figure 25: Yarra Valley Water projected water supply balance outlook Average Annual Volume (GL/Yr) Low climate change Medium climate change High climate change Post-1997 step climate change High population growth with climate change and higher per person consumption Medium population growth Low population growth with lower per person consumption Year beginning July additional future desalinated water capacity to provide climate-independent sources of water but only as a last resort and after extensive community consultation. MELBOURNE WATER SUPPLY SYSTEM Melbourne Water has produced a Melbourne Water System Strategy for the Melbourne water supply system 19 that includes the water supply demand balance for the Melbourne water supply system for 50 years. Melbourne s water supplydemand balance shows (using the same assumptions we have adopted in this strategy) using medium high-demand and high climate change scenarios, Melbourne may be required to augment by 2028 (compared to 2013 for Yarra valley Water only) this will require over 450 GL of extra supply by 2066 using a medium-demand scenario and medium climate change scenario, Melbourne may need to augment by 2043 (compared with 2053 for Yarra Valley Water only) using a low-demand scenario and low climate change impact scenario, Melbourne will have sufficient water for next 50 years. More detail on long-term water availability for the Melbourne water supply system can be found in Melbourne Water s Melbourne Water System Strategy. This means that Yarra Valley Water, with its current entitlements, is more secure than the system average. 19 Melbourne Water, 2017, Melbourne Water System Strategy 72 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

73 CASE STUDY DIVERSIFYING DRINKING WATER SUPPLY AND SIMULTANEOUSLY PROTECTING HIGH VALUE WATERWAYS The northern growth area has natural waterways that are ephemeral streams streams that flow only briefly during and following a period of rainfall in the immediate locality. In order to protect these natural and mostly undisturbed waterways, a substantial volume (90%) of the stormwater to be generated from urban development (from the significant increase in the area of impervious surfaces) needs to be captured. The volume of water that needs to be managed is estimated at 34 gigalitres per year. This is twice the demand for drinking water in the corridor at ultimate development, so additional supply is available for export from the area. An assessment of options has found that large-scale stormwater harvesting is the most cost-effective approach to managing stormwater to protect the waterways, compared to the current approach of wetlands and tree pits, or rainwater tanks. The preferred option is for a large-scale stormwater scheme to transfer the harvested stormwater to a common treatment facility located at Yan Yean reservoir. Potentially, the stormwater could be treated to drinking water standard and stored at the existing Yan Yean reservoir for subsequent distribution through the supply system. This proposal needs further stakeholder engagement and detailed development of the business case as well as regulatory approval. We have constructed a pilot stormwater harvesting plant to investigate whether the urban stormwater run-off can be consistently treated to a standard safe for drinking. We are also collaborating with Melbourne Water to confirm the feasibility of harvesting stormwater flows to provide higher levels of stormwater management to protect the upper reaches of the waterways in the northern growth area. WATER GRID AND WATER TRADING A key element of our strategy is to trade water with other urban water utilities in southern Victoria to defer a major water supply augmentation. In some areas, such as our northern growth area, as new suburbs are created a net surplus of water will become available. Typically, this surplus water would be discharged to our sewerage system and to local waterways but there is an opportunity to use this surplus water in the future as a supply source see the case study. Ultimately, these water resource capture opportunities could be part of the water market. In the Water for Victoria Water Plan, the Government has committed to developing a grid oversight function ( ) to inform strategic regional and system-wide (across water utilities boundaries) water resource planning and investment decisions. We support this proposal and will actively participate in its development 20. Water for Victoria plans to conduct a five-year south central Victoria market development trial commencing in The trial market aims to secure opportunities to trade water in order to delay or avoid costly water augmentations. We support this trial because there are opportunities to maximise the water availability for the Melbourne water supply system. 20 Victorian Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October, p Ibid, p 153 YARRA VALLEY WATER URBAN WATER STRATEGY

74 74 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

75 4.3.7 KEY ACTIVITIES The key activities associated with our strategic aim of providing the community confidence in our long-term water availability are: providing ongoing information to our customers on our long-term water availability including: 1. reviewing the annual Water Outlook a snapshot of our water availability on 1 December each year prior to the commencement of the peak summer water use period to make it more customer friendly and accessible (produced jointly by the water utilities in Melbourne) 2. providing better and more regular engagement with our customers on future water availability. monitoring long-term trends including our understanding of the latest science associated with climate change and water management becoming a leader in climate change adaption through our restorative environmental strategy which includes being greenhouse neutral, acting restoratively and becoming energy self-sufficient by 2025 managing our short-term (one year) and mediumterm (up to five years) water availability requirements through: 1. planning for the optimal use of all water resources including taking account of water availability risks and the extra cost of desalinated water to be borne by our customers 2. providing ongoing advice to customers about the use of desalinated water to supplement our water supplies. making the most of our existing water resources and continuing to promote efficient use of water through programs like Target 155 and our Schools Education Program also see below for discussion on ensuring the water we have is used sensibly. Our customers, like the majority of Melburnians, have adopted a great culture of saving water, and currently use 32 per cent less than they did in early 2000's. The Victorian Desalination Project increases the resilience of Victoria s water supplies, but sensible water-saving measures are still needed to keep Melbourne s water use at reasonable levels and ensure water bills are affordable for current and future generations. diversifying our water sources, including rainfallindependent water supplies. This underpins our adaptive approach to managing Melbourne s water availability over the next 50 years and ensures there is water resilience to meet the demands of the growing city and its water-related urban amenity. We will diversify our catchment-based water supply system by use of: 1. stormwater recycling and recycled water from treated sewage effluent, where feasible. We have already mandated recycled water for 100,000 new homes in Melbourne s Northern growth area, which will require six billion litres per year of recycled water at full development, and are piloting advanced processes to recycle stormwater to drinking water standard 2. desalination capacity - although we understand that our customers see that expansion of the Victorian Desalination Project should only be considered once all other options have been explored and then with extensive customer consultation. trading water to other urban water utilities in southern Victoria to maximise the utilisation of bulk entitlements by all water users and reduce the need for water supply augmentations. If, at any point, long-term water shortages seem likely, we will begin detailed planning for the next major augmentation of Melbourne s water supply in collaboration with the water utilities in Melbourne and the Department of Environment, Land, Water and Planning. The main actions required over the next five years are: continuing to engage with our customers on water availability matters including using the Annual Water Outlook as a key communication tool around short-term water availability participating in processes led by the Department of Environment, Land, Water and Planning including: 1. development of the grid oversight function 2. five-year south central market development trial (to commence in 2017) to secure the opportunities to trade water and delay or avoid costly water augmentations 3. long-term assessment of resources for southern Victoria to ensure healthy priority waterways and consumptive needs are met 4. review of Central Region Sustainable Water Strategy 5. integrated water management forums for Melbourne s catchments. developing a governance framework for monitoring and augmenting Melbourne s water system (in collaboration with the water utilities in Melbourne) continuing to drive water efficiency particularly through our Target 155 campaign (in collaboration with the water utilities in Melbourne) continuing to lead (where appropriate) or participate in place-based urban planning particularly involving local councils and Melbourne Water reviewing the principles for desalination water orders based on our changed water outlook zones (in collaboration with the water utilities in Melbourne) undertaking water efficiency research to understand future technology trends (in collaboration with the water utilities in Melbourne) IMAGE: Construction of new Wallan Sewage Treatment Plant YARRA VALLEY WATER URBAN WATER STRATEGY

76 4.3.8 STRATEGY FOR LONG-TERM WATER AVAILABILITY LONG-TERM DIRECTIONS understand and reflect customer needs and expectations in our planning provide ongoing accessible information to our customers on our long-term water availability continue to monitor long-term become a leader in climate change adaption and explore zero net greenhouse gas emissions by 2030 manage our short-term (one to three years) water availability requirements through optimal use of all our water resources continually evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration customer preferences continually evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration customer preferences engage with the community on the value of our diverse water supply system to our customers and instil confidence and trust in the services we provide diversify our water sources through recycled water and stormwater recycling schemes the water industry in Melbourne is forecasting 25 GL of alternative water by 2066 in line with current plans. The water utilities in Melbourne are aiming to contribute a further 40 billion litres where business cases demonstrate value to their communities [collaborative action with the water utilities in Melbourne make the most of our existing water resources and continue to promote efficient use of water through programs like Target 155 and our Schools Education Program trade water with other urban water utilities in southern Victoria to avert water shortages by some urban water utilities and potentially delay any major water grid additions. SUSTAINABLE DEVELOPMENT GOALS: 76 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

77 FIVE-YEAR ACTION PLAN continue to engage with our customers and the community to ensure we reflect their needs and expectations in our water supply planning [collaborative action with the water utilities in Melbourne] provide ongoing accessible information to our customers on our long-term water availability publish the water outlooks to meet community expectations to be more proactive, engaging and accessible [collaborative action with the water utilities in Melbourne] provide ongoing engagement with our customers and the community of the value of our water supply system to build understanding, confidence and trust in the services we provide both now and in the future [collaborative action with the water utilities in Melbourne] review the desalinated water order process in consultation with Department of Environment, Land, Water and Planning to ensure alignment with adaptive planning by September 2017 commit to supporting the efficient use of water across the community. By 2022, the Water industry in Melbourne is forecasting demands of: 150 litres per person per day for residential drinking water use across Melbourne 230 litres per person per day for total water use across Melbourne. We will publish our performance and actions in the water outlook [collaborative action with the water utilities in Melbourne] develop business cases for alternative water projects to demonstrate value to our communities continue to drive water efficiency including through our Target 155 and our schools education programs support Department of Environment, Land, Water and Planning in the delivery of Water for Victoria actions including Long-term Water Resource Assessment for southern Victoria, Central Region Sustainable Water Strategy, south central market trial, and development of grid oversight function evaluate long-term water supply options that could supply water to Melbourne and the surrounding region, taking into consideration community preferences [collaborative action with the water utilities in Melbourne] continue to work collaboratively across the industry to assess the benefits of digital metering for our communities [collaborative action with the water utilities in Melbourne] trade water with other urban water utilities in southern Victoria to avert water shortages by some urban water utilities and potentially delay any major water grid addition. SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

78 4.4 LONG-TERM SEWERAGE STRATEGY Our long-term sewerage objective is to provide an exemplary sewerage service that protects public health and is in harmony with the environment at lowest community cost. Our sewerage system collects sewage and transports it to two major metropolitan sewage treatment plants, and ten Yarra Valley Water-owned and operated local sewage and recycled water treatment plants. Currently around 92% of our sewage is transferred to Melbourne Water s eastern and western sewage treatment plants. Around 8% of our sewage is treated at our ten local sewage and recycled water treatment plants (refer figure 26). These local plants provide recycled water to some of our customers for fit-for-purpose household, business, open space (e.g. sporting grounds, gold courses) and agricultural uses. Figure 27 shows the location of our local sewage and recycled water treatment plants and the areas to which we provide Class A recycled water. Over time, investment will be required in new and upgraded sewerage infrastructure to cater for: population growth in the northern suburbs and major urban renewal areas and general increase in the population, and increased housing density the impact of a changing climate, including greater variability in rainfall events for example, heavier rainfall that infiltrates sewers causing overflows at emergency relief structures replacement of ageing assets increased demand for fit for purpose recycled water. changes in regulations and standards resulting from new information for example, the environmental impacts of emerging contaminants. Key elements of our sewerage strategy include: providing ongoing information to our customers on our long-term sewerage capacity including better and more regular engagement on future sewerage needs a robust risk-based asset management framework that seeks to provide exemplary and affordable service outcomes for the community and environment establishing and expanding local recycled water treatment plants in major growth and urban renewal areas to facilitate recycling and deferring or avoiding significant investment in the centralised sewerage and drinking water systems efficient and effective management of local treatment plants assessing opportunities for the sewerage system to be used for environmental restoration and resource recovery such as recycled water, waste-to-energy and sludge recovery applying a risk-based approach to treatment plant discharges to manage the impact on waterways applying a risk-based approach to progressive improvement of collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewer overflows at emergency relief structures working with councils and the community to prioritise and implement modern sewerage systems to replace septic tank systems not capable of properly treating and managing sewage on-site through delivering our Community Sewerage Schemes. The vast majority of sewage generated by our customers is treated and reintroduced to the environment at Melbourne Water s eastern and western sewage treatment plants. Water for Victoria has identified the need for development of a longterm sewerage strategy for Melbourne. We are committed to working with Melbourne Water, other water utilities, stakeholders and the community to develop a Metropolitan Sewerage Strategy (for completion in September 2018) that considers population and climate scenarios and recommended actions associated with the environmental health of Port Philip Bay. 78 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

79 Figure 26: Our current sewage treatment sources Yarra Valley Water s Local Treatment Plants 8% Melbourne Water s Western Treatment Plant 54% Melbourne Water s Eastern Treatment Plants 38% Figure 27: Our local sewage treatment plants and Class A recycled water areas WALLAN STP & RWTP KALKALLO SWTP WHITTLESEA STP KINGLAKE STP Sewage Treatment Plant (STP) Class A Treatment Plant (RWTP) Stormwater Treatment Plant (SWTP) Recycled Reservoir Storage (RRS) Mandated Recycled Water Areas MT RIDLEY RRS AURORA STP & RWTP CRAIGIBURN STP HEALESVILLE STP LILYDALE STP UPPER YARRA STP CBD BRUSHY CREEK STP & RWTP MITCHAM OFFICE MONBULK STP PORT PHILLIP BAY N YARRA VALLEY WATER URBAN WATER STRATEGY

80 Figure 28: Yarra Valley Water outlook for sewage flows 200, , , , , ,000 80,000 60,000 40,000 20, /16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 Along with the normal sewage inflows from households and businesses, our sewerage infrastructure is sized to accommodate inflow and infiltration of stormwater, rainwater and groundwater during wet weather. Figure 29 shows the projected increase in wet weather flows the quantity is projected to increase over future years as our population grows, (though the flow levels associated with inflow and infiltration are not expected to change). WTP ETP LTPs Figure 29: Yarra Valley Water outlook for wet weather sewage flows 200, , , , , ,000 80,000 60,000 40,000 20, /16 20/21 25/26 30/31 35/36 40/41 45/46 50/51 55/56 60/61 65/66 Dry Flows Inflow & Infiltration 80 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

81 4.4.1 OUR SEWAGE OUTLOOK Figure 28 shows the outlook for sewage flows over next 50 years. This shows that most of the increase will be treated at Melbourne Water s western treatment plant. There will be an increase in flows to our local sewage treatment plants with a new plant at Wollert to treat sewage from the growing northern suburbs OUR PLANNED SEWAGE SCHEMES Based on current projections over, Yarra Valley Water will invest more than $500 million in key transfer and treatment infrastructure by Figure 30 outlines these proposed investments. An overview of our sewerage planning approach is contained in Appendix 5. Figure 30: Our planned sewerage investment Asset Taylors Creek Branch Sewer Indicative timing Indicative cost Stage $10M Wallan STP Rising Main 2021 $10M Lockerbie Main Sewer 2021 $90M Kalkallo Creek Main Sewer Stage $50M Stage $50M Connybrook Rd East Branch Sewer 2017 $15M Donnybrook Link Branch Sewer 2018 $20M Wollert STP 2028 $100M Craigieburn Transfer Hub Love Branch Sewer Stage $25M Stage 2A 2020 $5M Stage 2B 2020 $5M Stage 3& $25M Stage $5M Stage $5M Stage $5M Epping Branch Sewer Section 4B 2017 $5M Epping Tunnel 2020 $65M Donnybrook Link Branch Sewer Taylors Creek Branch Sewer Wallan STP Kalkallo Creek Main Sewer Craigieburn STP & Transfer HUB Wollert STP Amaroo Main Sewer Craigieburn-Epping Transfer Sewer Aurora STP Wallan STP Rising Main Lockarble Main Sewer Donnybrook Rd East Branch Sewer Love Branch Sewer KINGLAKE TREATMENT PLANT WHITTLESEA TREATMENT PLANT Epping Branch Sewer Section 4B Epping Tunnel Existing Sewer Planned Sewer Existing STP Planned STP YVW Boundary HEALESVILLE TREATMENT PLANT LILYDALE TREATMENT PLANT BRUSHY CREEK TREATMENT PLANT UPPER YARRA TREATMENT PLANT MONBULK TREATMENT PLANT N YARRA VALLEY WATER URBAN WATER STRATEGY

82 82 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

83 4.4.3 OUR LOCAL SEWAGE TREATMENT PLANTS Yarra Valley Water manages ten local sewage treatment plants, collectively treating 8% of our network s flows. We own and operate local treatment plants in areas that are otherwise difficult to connect to the metropolitan sewerage network, usually because of distance, geographical constraints or the history of the city s development. As Melbourne grows we will continue to review the lowest community cost options for providing sewerage services to these communities. One additional local sewage treatment plant is currently planned for Wollert in our northern growth area. Appendix 6 provides an assessment of existing and planned local treatment plants and an indication of proposed actions for each. We will look to rationalise these plants from time to time. A potential consolidation of local sewage treatment plants is currently being investigated in the Lilydale area see the case study in this section. CASE STUDY BRUSHY CREEK AND LILYDALE LOCAL TREATMENT PLANTS In the eastern part of our service area around Croydon and Lilydale, we operate two local sewage treatment plants Brushy Creek and Lilydale. The facilities vary in age and condition but both will require significant investment in coming years to renew assets and sustain future operations. The level of investment required warrants a review of the existing sewage treatment strategy for these sewage treatment plants. Amongst the options to be investigated will be consolidation of these two facilities into one larger treatment facility. With a view of achieving lowest community cost outcomes, it is envisaged that a combined facility may provide an economy of scale to support local resource recovery and provision of recycled water. We are currently participating in a feasibility study into the use of recycled effluent for agricultural purposes from the Lilydale plant. YARRA VALLEY WATER URBAN WATER STRATEGY

84 4.4.4 COMMUNITY SEWERAGE SCHEMES In our sewerage service area, there are around 12,000 properties that lack sustainable sewerage services and cannot dispose of sewage on site most rely on on-site septic tanks. If the dispersal area on the property is unsuitable or systems are inadequately maintained, seepage of sewage into groundwater and run-off into waterways can occur, resulting in poor amenity, environmental and health problems. Under Schedule F7 of the State environment protection policy (Waters of Victoria), it is the responsibility of councils, in conjunction with the Environment Protection Authority Victoria, to identify properties that are not capable of treating and retaining sewage within their boundaries and to recommend priorities for the provision of sewerage systems. Councils originally identified around 17,150 properties in our service area with septic tank systems not capable of properly treating and disposing of sewage onsite. We have worked with councils to review the assessment of the land capability to contain sewage flows and prioritise those areas where environmental and health benefits can be achieved most cost effectively. We are currently working with councils and communities in the higher priority areas to develop suitable modern sewerage systems. There is often a range of alternative sewage management options, aside from conventional reticulated sewerage schemes, that can be used to manage sewage in an area. We strive to implement sustainable solutions and develop options in our design process that provide cost-effective environmental and health benefits. We are currently installing two types of reticulated sewerage systems conventional gravity sewers and pressure sewers. We are also trialling the use of upgraded on-site systems at Park Orchards (refer case study in Chapter 8). The type of system used to service an area is determined during the design process, which involves consultation with the local community. Factors, such as the topography of the land and environmental disruption, influence the selected solution. Below is a case study of our approach with evaluating options for the Monbulk Community Sewerage Project using integrated water management approaches. This case study provided valuable insights for use of integrated water management option analysis with stakeholders for future Community Sewerage Projects. IMAGE: Dean Anderson, Project Manager and archeologist at Donvale Community Sewerage Project 84 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

85 IMAGE: David Diaz, Project Manager, Community Sewerage Scheme CASE STUDY MONBULK COMMUNITY SEWERAGE PROJECT The Monbulk area contains approximately 900 unsewered properties, and has been identified by Yarra Ranges Council as requiring new sewerage services, because the current septic tanks are not containing the waste according to current environmental and human health standards. A case study of the application of an Integrated Water Management (IWM) approach was conducted on the Monbulk Community Sewerage Project. The goal of the study was to determine whether IWM approaches enable development of sustainable long-term sewerage servicing solutions that deliver acceptable health and ecosystem protection outcomes at equivalent or less cost. With input from the stakeholder engagement process, eight IWM options were developed and compared to Business as Usual (septic tanks) and conventional sewerage (pressure sewers). IWM options considered included different options for providing stormwater, sewerage and alternative water services, and their combined benefit to the community and the environment (rather than looking at sewer servicing options alone). This new approach allowed consideration of stakeholder values and contributions in the options design stage. This is particularly critical when designing IWM options, which cannot be implemented in isolation and rely on collaboration with a range of organisations. Stakeholders were asked to agree on a range of measures of success, and to identify what they could contribute towards achieving that. This allowed stakeholders to understand the options and the needs of other stakeholders to enable more insightful shortlisting of the preferred IWM scenarios. The Monbulk project gave us a range of new insights and tools that will be very useful for future Community Sewerage projects. It will help us to identify ways to incorporate IWM management principles and water-sensitive land-use planning strategies into strategic and development planning, in close collaboration with the local stakeholders. OVERVIEW OF SEWERAGE SERVICING OPTIONS BaU (septic systems) Conventional (pressure sewerage) IWM (best option) Human health Very poor Exceeds Very good Environmental health Poor Very good Very good Community adoption Poor Satidfactory Very Good Development Opportunities Very poor Very good Satisfactory Cost implications Very good Good Good YARRA VALLEY WATER URBAN WATER STRATEGY

86 4.4.5 RESOURCE RECOVERY AN AREA OF INCREASING OPPORTUNITIES The opportunities presented by resource recovery are of increasing interest to Yarra Valley Water. As indicated in Chapter 2 on climate change, we are planning to become energy self-sufficient by This will largely be achieved through use of our local sewage treatment plants. Two examples of the opportunities for value-adding from our local sewage treatment plants are: a recycled water scheme, currently under investigation, to be supplied from our Lilydale local sewage treatment facility for grape and strawberry growers around Coldstream in the Yarra Valley. the Aurora food waste-to-energy plant, currently being commissioned, which is located next to the Aurora Sewage Treatment and Recycled Water Treatment Plants in Melbourne s north. This new facility will use food waste as a feasible renewable energy source see the case study. As the Millennium Drought hit, we investigated ways to offset the increased energy cost of augmenting our local sewage treatment plants to include provision of recycled water. Initial assessment of a number of renewable energy sources such as traditional cogeneration systems, wind and solar, among others were not economically feasible for smaller-sized plants. The Australian water sector is a large energy user in the supply, treatment and distribution of water. Energy use is heavily influenced by the need to pump water and sewage and by the nature of sewage treatment processes employed, and varies significantly from city to city. In an uncertain future, relying on non-renewable sources of energy will mean utilities and communities will face a number of challenges, including: climate change impacts on society if greenhouse gas emissions are not curbed shocks to energy price and supply variability rising costs as more energy-intensive options, such as recycled water, decentralised systems and desalination are needed. IMAGE: Activated sludge plant, Aurora Sewage treatment plant 86 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

87 CASE STUDY AURORA FOOD WASTE TO ENERGY PLANT Yarra Valley Water currently constructing a waste-to-energy facility next to the Aurora Sewage Treatment and Recycled Water Treatment Plants in Melbourne s north. Our longstanding partnership with East Bay Municipal Utility District in California gave us insights into what might be possible from co-digestion with food waste as a renewable energy source. One hundred tonnes of food waste that was previously destined for landfill will be processed every day into biogas via anaerobic digestion. From a regulatory and cost standpoint, the best approach was to separate the sewage sludge and food waste processes and not integrate the two. The site was strategically chosen for its location near the treatment facilities but also for its proximity to local food manufacturing as well as the wholesale markets in Epping. We set up a separate business unit within Yarra Valley Water for the new plant. It is designed to divert 33,000 tonnes of waste per year from landfill, and power both treatment plants. The new plant is expected to be operational in early Commercial organic waste from local markets and manufacturers will be processed into biogas via anaerobic digestion. It is expected that enough energy will be generated to run the facility and the neighbouring treatment plants. Any surplus energy will be exported to the electricity grid, helping to reduce greenhouse gas emissions, and our reliance on traditional sources of electricity. With the economics favouring renewables, the consideration of a food waste to energy plant was inspired by our role as a processor of sewage waste. Given that we already processed 75% of the region s waste by volume it was logical to consider expanding into other waste streams. This was achievable from a capacity and capability standpoint. There was strong community support to construct the plant, and strong community engagement throughout the project. The township of Aurora was built as an environmental showpiece and providing recycled water via a renewable energy source contributed to this vision. The benefits from this facility are: reduction of waste going to landfill reduction in greenhouse gas emissions reduction in energy costs to Yarra Valley Water (and fewer costs being passed on to customers) an independent revenue stream for us from gate fees paid for the disposal of food waste a sustainable energy source resilient to supply or price shocks. YARRA VALLEY WATER URBAN WATER STRATEGY

88 4.4.6 OUR STRATEGY FOR LONG-TERM SEWERAGE CAPACITY LONG-TERM DIRECTIONS understand and reflect customer needs and expectations in our planning provide ongoing accessible information to our customers on our long-term sewerage availability develop a robust risk-based asset management framework that seeks to provide exemplary and affordable service in harmony with the environment investigate (and, if feasible, implement) the use of treated effluent from local sewage treatment plants or the sewerage system for use in major growth and urban renewal areas to defer or avoid significant investment in the centralised sewerage and drinking water systems ensure efficient and effective management of local treatment plants assess the sewerage system for environmental restoration and resource recovery opportunities apply a risk-based approach to treatment plant discharges to manage the impact on waterways apply a risk-based approach to progressively improve the collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewage overflows at emergency relief structures ensure continuous improvement of our adaptive investment program to identify and rectify blocked sewers work with councils and the community to prioritise and implement modern sewerage systems to replace septic tank systems not capable of properly treating and managing sewage on site. SUSTAINABLE DEVELOPMENT GOALS: 88 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

89 FIVE-YEAR ACTION PLAN continue to engage with our customers and the community to ensure we reflect their needs and expectations in our sewerage planning. provide ongoing accessible information to our customers on our long-term sewerage availability deliver the Melbourne Sewerage Strategy by 2018 [collaborative action with the water utilities in Melbourne] maintain a best practice risk-based asset management framework for the sewerage system investigate the use of recycled water from local sewage treatment plants or the sewerage system for use in major growth and urban renewal areas assess the sewerage system for further resource recovery opportunities deliver food waste to our energy facility at our Aurora treatment plant investigate the capacity to manage the impact of treatment plant discharges on waterways investigate improvements to the collection and transfer systems to manage the impact on waterways of heavy rainfall and infiltration into sewers that cause occasional sewage overflows at emergency relief structures identify improvements to the rectification of blocked sewers deliver the Park Orchards and Monbulk Community Sewerage Schemes. SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

90 5 USING THE WATER WE HAVE SENSIBLY CHAPTER KEY POINTS Our customers have adopted a great water-saving culture using around 32 per cent less per person than in the early 2000's. Sensible water-saving measures, such as Permanent Water Use rules, are still needed. Customers are seeking a continued focus on water efficient behaviours and investment in rainwater tanks and alternative sources. There is a push to enhance water literacy through schools and digital engagement, and to increase the development of alternative technologies. The community welcomes voluntary behaviour change campaigns such as Target 155. Choose Tap has been developed as a broad, communitybased initiative promoting tap water as the best hydration choice for the environment, people s health and their hip pocket. 90 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

91 YARRA VALLEY WATER URBAN WATER STRATEGY

92 USING THE WATER WE HAVE SENSIBLY 5.1 INTRODUCTION Our customers have adopted a great water-saving culture using around 32 per cent less per person than in the early 2000's. It is important that we continue to use water responsibly while enjoying the amenity water provides. The Permanent Water Use Rules put in place after the Millennium Drought are a good example of common sense rules that the community expects to have in place to ensure water is not wasted. As mentioned in Chapter 3, our customers still want us to focus on water-efficient behaviours through various programs such as Target 155 and schools education. In Australia, we often take our tap water for granted. Melbourne has some of the best quality drinking water in the world. Choose Tap has been developed as a broad, community-based initiative promoting tap water as the best form of hydration, which has the benefits of being relatively cheap, supporting public health and reducing waste. A focus of the Victorian Government's Water for Victoria plan is helping communities better understand the urban water cycle, the importance of water in the urban environment, and challenges as part of the next stage of water efficiency initiatives. Action 5.3 states: We will help communities better understand urban water challenges and what they can do to achieve these results by: rolling out the next generation of the Target 155 program for Melbourne, and developing the Target Your Water Use program for regional Victoria, to help people understand the importance of water and manage their water use making sure water corporations continue to work actively with industries that use a lot of water to find ways to improve water efficiency building the Schools Water Efficiency Program by increasing the number of schools in the program and expanding it to other areas, such as government buildings promoting the water corporations Choose Tap campaign (or similar), which provides readily available drinking water that supports public health and reduces waste. Ensuring the water we have is used sensibly means: application of permanent water use rules community education about the efficient and sensible use of water accessible use of our quality tap water 'Choose Tap program. 5.2 PERMANENT WATER USE RULES The Permanent Water Use Rules were introduced in 2011, following the Millennium Drought, to help manage our water efficiently and satisfy community concerns about the return of bad habits with the lifting of water restrictions. Sensible water-saving measures are still needed to keep Melbourne s water use from the drinking water system at reasonable levels and to ensure water bills are affordable for current and future generations. The rules do not apply to the use of recycled, reclaimed, rain or greywater, except where it is supplemented in any way by drinking water. The rules set out how you can use water around the home. For example: you can water residential or commercial gardens and lawns at any time, on any day, using a hand held hose fitted with a trigger nozzle. However, you can water gardens and lawns using a watering system (manual, automatic, spray or dripper) only between 6pm and 10am, any day of the week. you cannot hose down hard surfaces including driveways, paths, concrete, tiles, timber decking and other paved areas except where cleaning is required, or if there is an accident, fire, health hazard, safety hazard or other emergency. However, you can use a high-pressure cleaning unit, or if such a unit is not available, a hose fitted with a trigger nozzle, or a bucket to remove stains from hard surfaces once a season (every three months). you can apply for exemptions from the Permanent Water Use Rules. For example, where you have a medical condition or disability, tend a public or private garden that has significant botanic, environmental or historic qualities and is considered a Garden of Significance, or if you are installing a new lawn. 92 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

93 5.3 EFFICIENT AND SENSIBLE WATER USE EDUCATION As indicated in Chapter 3, customers are seeking a continued focus on water efficient behaviours. There is a push to enhance water literacy through schools and digital engagement, and to increase the development of alternative technologies. The community also welcomes voluntary behaviour campaigns such as Target 155. This is consistent with Water for Victoria s vision. We deliver a number of programs encouraging sensible and efficient use of water: Target 155 a voluntary water efficiency program that encourages households to use water efficiently by aiming for a maximum of 155 litres per person per day Schools Education Program we offer assistance to schools and early learning centres to integrate water as a topic into the curriculum. For schools, this includes free classroom presentations, a lending library, giant games and floor puzzles, competitions to celebrate National Water Week and water education curriculum resources Schools Water Efficiency Program (SWEP) a Victorian Government initiative that enables schools to track their water usage using data logger technology. This program is capable of expansion to other sectors. working with industry and councils to improve water efficiencies. To complement these programs, we provide tips on simple ways to save water: in the home taking shorter showers, being a water-wise gardener, installing a water-efficient showerhead (including a free showerhead exchange program) or dual flush toilet, installing a rainwater tank, buying a water efficient washing machine and checking for leaks at school identifying leaking taps, using drink taps, using washing machines and dishwashers, collecting rainwater for use in toilets and water efficient gardens at work finding causes of leaks, using comparative business water use benchmarks and cooling tower performance hints and tips. We promote water efficiency to our residential customers through account inserts, social media and local media. We also engage with our business customers at our business breakfasts and other meetings. Our action plan over the next five years is to enhance our existing programs to continue to encourage water efficient behaviours. As indicated in Chapter 4, our assumption on residential water use is that the current use of our customers of 161 litres per person per day will drop to 127 litres per person per day in 50 years. This depends on our continued focus on water efficiency. IMAGE: Students from Meadows Primary School participating in Yarra Valley Water school education program YARRA VALLEY WATER URBAN WATER STRATEGY

94 CASE STUDY SCHOOL'S EDUCATION Yarra Valley Water offers a range of resources to integrate water as a topic into the curriculum in schools and early learning centres in our service area. For schools, we offer free classroom presentations (incursions) and resources, including a lending library, giant games and floor puzzles, competitions to celebrate National Water Week, and water education curriculum resources. In 2016 we received 177 poster entries for our National Water Week poster competition, ranging from prep/foundation to Grade 6. Since adding the Choose Tap incursion to our suite of offerings to schools in 2013, we have presented more than 600 classroom incursions at 275 primary schools. Students have learned in a fun and engaging way the natural water cycle, water supply, sewerage system, water conservation and the importance of staying hydrated. With a new curriculum being rolled out into Victorian schools from 2017, there are further opportunities to incorporate water into education, with water themes appearing in 45 of the curriculum descriptors across three different subjects. The new curriculum will help guide the development of new resources that will tie in with our commitment to Reconciliation. Work is already under way to update existing resources to include local Aboriginal stories and history, as well as to create new resources to assist in raising our customers awareness and understanding of Aboriginal culture, aspirations and the past and current issues that have impacted greatly on Aboriginal and Torres Strait Islander people. The cross-curriculum priority of sustainability acts as a channel for us to deliver socially responsible messaging on the efficient use of water and to tie in with other government programs and priorities such as Target YARRA VALLEY WATER URBAN WATER STRATEGY 2017

95 CASE STUDY SCHOOLS WATER EFFICIENCY PROGRAM (SWEP) The Schools Water Efficiency Program (SWEP) is a Victorian Government initiative enabling schools to track their water usage using data logger technology. Since 2012, SWEP has identified and saved participating Victorian schools more than 3 billion litres of water a saving of more than $8.7 million through early identification of leaks, faulty appliances and inefficient practices. Using data loggers (which monitor daily water use at 15 minute intervals) participating schools are better able to understand their water use and identify faults or leaks that may not have been recognised as quickly, or at all. SWEP is available to every Victorian school. The program provides access to subsidised data loggers, a dedicated website, specialist advice and curriculum materials for monitoring and managing water consumption and continuing the water efficiency education of Victorian school children. 5.4 CHOOSE TAP PROGRAM - USE OUR QUALITY TAP WATER Choose Tap is the first fully integrated, grass-roots program of its type in the world promoting tap water as the best form of hydration which has the benefits of being relatively cheap, supporting public health and reducing waste. The Choose Tap program makes tap water more accessible to the community with a range of initiatives focused on sports and recreation, health and wellbeing and an extensive education program. The program provides: 8000 refill locations a smart phone app helps you find places to refill your drink bottles while out school and community groups in our service area with the opportunity to purchase drink bottles from us at cost price, either to give away or on-sell as a fundraiser an education program for staff and students to learn about the benefits of drinking tap water as part of a healthy lifestyle and as an environmentally positive alternative to bottled beverages. A program has been developed for Early Learning Centres for children aged 3 to 5 years and Primary School aged children from 5 to 12 years. 5.5 KEY ACTIVITIES The key activities planned to ensure the water we have is used sensibly include: use of permanent water use rules, which are already in place across Melbourne promoting efficient and sensible use of water through: 1. water efficiency programs such as Target our Schools Education Program. 3. encouraging schools to participate in the Schools Water Efficiency Program (SWEP). 4. continuing to assist businesses and Councils (public gardens and sporting grounds) to become more water efficient and explore alternative water sources 5. continuing customer engagement on water efficiency e.g. account inserts, social media, local media promoting the Choose Tap program, which provides readily available drinking water that is cheap, supports public health and reduces waste. We plan to continue with this program, which is also an action in the Government s Water for Victoria plan. YARRA VALLEY WATER URBAN WATER STRATEGY

96 CASE STUDY 'CHOOSE TAP' COALITION The Choose Tap Coalition was formed in 2014 after the initial success of the Choose Tap programs at Yarra Valley Water. Presently, there are 17 coalition members including two of the metropolitan Melbourne water utilities, 12 of the Victorian regional urban water utilities and three water utilities in NSW. The initiative has been very successful with coalition members able to utilise Choose Tap messaging, items and programs in ways that best suit their individual demographics. The BPA-free Choose Tap refillable bottles are the cornerstone of many customer interactions with tens of thousands of the bottles having been distributed through the coalition. Coalition members have had success in engaging their communities through various channels including Choose Tap education programs, workplace programs, hospitality programs, sports club programs, the installation of water refill stations in public spaces and having a presence in the community at festivals and events to promote the Choose Tap message. The Choose Tap Coalition provides a strong and united platform to build a common brand that advocates the very product that we, as water utilities provide tap water. IMAGE: AFLW Moana Hope. Yarra Valley Water 'Choose Tap' ambassador 96 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

97 5.6 OUR STRATEGY FOR USING THE WATER WE HAVE SENSIBLY LONG-TERM DIRECTIONS continue to implement sensible water saving rules Permanent Water Use Rules continue to promote efficient and sensible use of water through programs like Target 155, our Schools Education Program, the Schools Water Efficiency Program and our business and Council programs continue to promote the benefits of tap water through the Choose Tap program SUSTAINABLE DEVELOPMENT GOALS: FIVE-YEAR ACTION PLAN continue to implement Permanent Water Use Rules delivering on our Target 155 program continue to develop and deliver our Schools Education Program expanding our Schools Water Efficiency Program to other sectors continue to promote the benefits of tap water through the Choose Tap program undertaking water efficiency research to understand future technology trends SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

98 98 YARRA VALLEY WATER URBAN WATER STRATEGY 2017 YARRA VALLEY WATER URBAN WATER STRATEGY

99 6 BEING PREPARED FOR DROUGHTS AND WATER SHORTAGES CHAPTER KEY POINTS We need to have plans in place to manage periodic droughts and other water shortage events. The Millennium Drought (1997 to 2009) showed us that we need to be prepared for future water shortages. We also need to be able to manage through a repeat of such an event. We will remain largely dependent on catchment-based water sources for the foreseeable future. Investing in climate-independent sources such as the desalination plant and other fit-for-purpose water sources will go a long way towards mitigating future dry periods. The water utilities in Melbourne have an adaptive framework based around three zones to manage uncertainty with water supplies. Population changes and adjusted climate change scenarios mean the zones have been updated in this Urban Water Strategy to provide our customers with the same level of water availability. We have a Drought Preparedness Plan to manage water shortages due to droughts and other emergency events such as a major bushfire in our protected catchments. This Plan includes a Drought Response Plan which helps determine when the four stages of restrictions can be imposed. Central to our drought preparedness approach is the publication of the Annual Water Outlook for Melbourne on 1 December each year. Our drought preparedness includes working with councils and other community organisations to identify priority green open spaces for consideration of watering during droughts with alternative water sources and/or exemption from bylaws. YARRA VALLEY WATER URBAN WATER STRATEGY

100 BEING PREPARED FOR DROUGHTS 6.1 INTRODUCTION Water for Victoria aims to build a resilient and liveable Melbourne through an integrated water management approach that includes creating green open spaces, such as sporting grounds, which can be used even during a severe drought. These spaces will provide water-related urban amenity, reduce the growing city s heat island effect, and minimise the health impacts of heat stress caused by a warmer climate. Climate change and weather variability are key risks in providing water supplies to our customers, and likely to worsen as our planet continues to warm. Victoria has a highly variable climate, which produces severe floods as well as droughts. The long-running Millennium Drought had significant impacts on the community and led to the construction of major water supply augmentation works for Melbourne. One of its impacts was the social dislocation that occurred when urban amenities could not be used due to a lack of water. Lessons have been learned from the experience of the Millennium Drought we are committed to adopting management strategies that adapt to these climate change and annual weather variation risks and minimise the loss of urban amenity. It is also important to ensure that our community and customers are both aware and prepared for periods of shortage such as the Millennium Drought. Figure 31: Key elements of our adaptive management approach LONG TERM ( > 5 years) MEDIUM TERM (1-5 years) DROUGHT / EXTREME EVENTS Identifying strategic actions to balance long-term supply/demand Melbourne Water System strategy Urban Water Strategies Environmental Water Management Plans Making decisions each year to meet short & long-term objectives Water outlook Desalinated Water Order Advice Annual Operating Plan Seasonal determinations Seasonal watering Plans Managing extreme events Drought Preparedness Plan Emergency Management Plans Ongoing planning & operational acitvities Accounting & reporting Monitoring & analysis System modelling Yield assessment System optimisation Research Customer & stakeholder relationships Infrastructure studies Integrated Water Management forums & plans 100 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

101 The key elements of our adaptive management approach are shown in Figure 31. The major elements are: development of an Urban Water Strategy every five years with a 50-year outlook (in conjunction with Melbourne Water developing its Melbourne Water System Strategy) our Drought Preparedness Plan for water shortages associated with drought and water quality events including a restriction by-law an Annual Water Outlook for Melbourne which provides a snapshot of our resource availability and short and medium term actions Annual desalinated water order advice to the Minister the desalination plant is a critical asset to ensure Melbourne s long- and short-term water needs are met. Using desalinated water to supplement our climatedependant sources will be one of the critical actions we and the other retailers can take to retain the reliability and resilience of the system. There is an obligation to provide advice to the Minister for Water to enable an order to be placed by 1 April each year. 6.2 MELBOURNE S ADAPTIVE FRAMEWORK Following the Millennium Drought, the water utilities in Melbourne adopted an adaptive management approach to inform the community of water availability and drive the response to annual weather variations and emerging longerterm trends in demand and supply. This adaptive framework underpins the level of service provided to our customers on water availability and drought preparedness. This management approach was based on the following: identification of significant risks to the systems building resilience to significant risks being ready for anything managing adaptively. Figure 32: Our adaptive framework MELBOURNE S STORAGES Drought Ready Water efficiency including Target 155 Leakage reduction Drought planning Permanent Water Use Rules Desal optimisation Drought Preparedness Plan Commences Common Melbourne Actions Desal maximisation Augmentation planning and possible construction Demand / supply interventions (stages 1 and 2 of restrictions possible options) Drought Preparedness Plan Continues Common Melbourne Actions Desal 100% capacity Augmentation commissioning and future planning Demand / supply interventions (stages 3 and 4 of restrictions possible options) 100% 60% 40% 30% 0% HIGH ZONE Optimising Supplies MEDIUM ZONE Take action (5 years supply) LOW ZONE Emergency circumstances (2 years supply) Potential spill zone: consideration of discretionery use of Thomson Hydro Consideration of maximising traditional sources (Winneke, Tarago etc.) and local solutions Consideration of desal orders, maximising traditional sources and local solution solutions Joint decision-making commences Desal order and water supply augmentation decisions 3.5 year lead time to increase desal capacity from 150 GL to 200 GL Sugarloaf Pipeline (North-South) able to be used Dead storage available to be pumped if needed POST 1997 STREAMFLOWS (1997 to 2016) YARRA VALLEY WATER URBAN WATER STRATEGY

102 Our adaptive framework is based around three zones shown in Figure 32 and detailed in Chapter 4 (Table 1). These zones are based around storage levels at 30 November each year at the end of the winter/spring dam filling period. The low zone contains a restricted emergency supply and we plan to avoid moving into it as our basic service level. The medium zone contains up to five years of supply, enabling Melbourne to manage a drought event like the Millennium Drought, when storages rapidly declined Melbourne went through four stages of restrictions in seven months and remained at the lowest level, Stage 3a (level between Stages 3 and 4), for another three years. In the high zone, water supplies are optimised to generally stay within this zone. Population changes and adjusted climate change scenarios mean the zones have been updated in this Urban Water Strategy to provide the level of water availability described in section 4.2 maintaining Melbourne s storage above the low zone and providing five years of water availability in the medium zone. Every five years, with each new Urban Water Strategy, we plan to update the zone trigger points principally for the increase in population over the previous five years this will typically result in the zone trigger levels being raised. While the updated adaptive framework will be adopted with this Strategy, a number of matters will need to reviewed to fully implement the new framework. These include: continuing to engage with our customers on the adaptive framework zones. reviewing the Annual Water Outlook for Melbourne to ensure that it meets its purpose refer section 6.5 reviewing the desalinated water order process and principles upon which the water utilities in Melbourne provide advice to the Minster for Water on the annual desalinated water order. 6.3 OUR DROUGHT PREPAREDNESS PLAN PLANNING FOR UNCERTAINTY Our adaptive framework is aimed at avoiding the situation where severe Stage 3 and 4 restrictions are required. That said, we need to be prepared, so Melbourne s retailers have prepared common Drought Preparedness Plans to ensure: Melbourne, as a city, is managed consistently during water shortages the community is informed and prepared for impending water shortage periods a timely and effective short-term response to the occurrence of water shortage, with the aim of minimising the impacts (social, economic, and environmental) of such shortages. The water supply system in Melbourne is operated as a whole and the three retailers and Melbourne Water commit to working together to ensure water resources available to Melbourne are optimised and that, where appropriate, we take a consistent approach to ensure the overall reliability of the supply system and all customers are prepared. Our Drought Preparedness Plan is focused on these aspects: our preparedness to manage our water portfolio our ability to regulate the use of water outdoors via a By-law for water restrictions the preparedness of our customers a shared commitment to ensuring community assets remain sustainable and viable. During the Millennium Drought, restrictions in Melbourne resulted in significant impacts on the community, which have been canvassed previously. In the event that we need to impose restrictions we are planning to minimise the impact on water-related urban amenity. We plan to work with councils and other community organisations to identify priority community open spaces such as sporting grounds and significant public gardens that should be watered during droughts and other emergency events assess their preparedness for drought events and determine the optimal means to water them during dry periods. This commitment will build on the work already undertaken by many councils and other owners of these community assets. We will work with each of these entities to understand their needs and provide options, which could include the use of alternative water sources. Our new Drought Preparedness Plan, which will be effective from 1 April 2017, supports our water restrictions by-law. This plan and by-law also make clear the principles for providing exemptions to customers from restrictions after the consideration of the economic impacts, damage to open space and irreversible damage to public gardens. A copy of our Drought Preparedness Plan is contained in the Addendum. 6.4 MANAGING DROUGHTS AND WATER SHORTAGES The Millennium Drought taught us that we need to be prepared for future droughts, potentially more severe than we have experienced since records commenced in A key benchmark is to ensure that we can manage through a repeat of the Millennium Drought, particularly the period from 2006 to 2008 where we experienced the lowest historical streamflows to our reservoirs. Figure 33 shows how Melbourne s storage levels would track if conditions were similar to those of the Millennium Drought and is dependent upon the storage levels at the beginning of the drought and how the desalination plant is operated. Further details on this matter can be found in Melbourne Water s Melbourne Water System Strategy 22. The water industry in Melbourne also has emergency management plans in place to manage Melbourne s water supplies for catastrophic events, such as a major bushfire in our water supply catchments. This could entail invoking the emergency management powers under state legislation and operating the desalination plant at full capacity. 102 YARRA VALLEY WATER URBAN WATER STRATEGY Melbourne Water, 2017, Melbourne Water System Strategy

103 Figure 33: Potential future storage levels for repeat of the Millennium Drought 1,800,000 1,600,000 1,400,000 1,200,000 Water Storage Volume (ML) 1,000, , , , ,000 0 Nov 2016 Mar 2017 Jul 2017 Nov 2017 No further desalinated water 150 GL per year if below Medium Zone 150 GL per year if below Medium Zone and 50 GL per year if above Medium Zone 150 GL per year Medium Zone Action Point Low Zone Action Point Mar 2018 Jul 2018 Nov 2018 Mar 2019 Jul 2019 Nov 2019 Mar 2020 Jul 2020 Nov 2020 Mar 2021 Jul 2022 Nov 2022 Mar 2023 Jul 2023 Nov 2023 Mar 2024 Jul 2024 Nov 2024 Mar 2025 Jul 2025 Nov 2025 Mar 2026 Jul 2026 Nov 2026 Mar 2027 Jul 2027 Nov 2027 Mar 2028 Jul 2028 Nov 2028 Mar 2029 Jul 2029 Nov 2028 Mar 2030 Jul 2030 Nov ANNUAL WATER OUTLOOK Central to our drought preparedness approach is the publication of the Annual Water Outlook for Melbourne. These outlooks have been released annually, on 1 December, since They serve to: provide a range of water management information to the community outline key risks to the water supply system outline actions that Yarra Valley Water, individually, or the water industry in Melbourne, will undertake over the next 12 months to deliver five years of water supply availability for Melbourne report on progress in the implementation of alternative water supply projects, water efficiency investments and enhancements to the existing supply system determine whether there is a need for water restrictions after considering the social and economic costs of those restrictions and other water savings initiatives. We are committed to ensuring customers and stakeholders are updated on the performance of the water supply systems and will review system performance and planned actions more frequently if needed. A revised Water Outlook will be published that reflects the Customer feedback received. Our customers have indicated that our current Annual Water Outlook document is ineffective as a communication tool about water availability. We understand that our customers: desire more regular, consistent engagement on water availability and plans to secure longer-term water supplies "[IT WAS] DIFFICULT TO READ. IT WAS NOT ENGAGING. VERY INFORMATIVE, BUT FOR AN AVERAGE CONSUMER THEY WOULDN T KNOW WHAT TO DO WITH IT". - STAKEHOLDER YARRA VALLEY WATER URBAN WATER STRATEGY

104 view the current Annual Water Outlook document as ineffective as a communication tool it needs to be reworked as part of a more proactive and engaging way of managing water availability, to help build water literacy and allay community concerns. Our strategy incorporates actions to address these concerns. 6.6 KEY ACTIVITIES The key activities to prepare for droughts and water shortages are: providing ongoing information to our customers on our short-term and long-term water availability reviewing the Annual Water Outlook to ensure it meets the needs of our customers diversifying our water sources continuing to promote efficient use of water for example, the Target 155 program trading water to other water users to avert any premature major water supply augmentation participating in metropolitan working groups including the joint demand working group. 104 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

105 6.7 OUR STRATEGY TO PREPARE FOR DROUGHTS AND WATER SHORTAGES. LONG-TERM DIRECTIONS an adaptive framework for the water utilities in Melbourne to manage any water shortages including being able to manage a repeat of the Millennium Drought without impacting on our customers, the community or the environment have a Drought Preparedness Plan that can be readily implemented and caters for a severe drought or a major water shortage emergency work with councils and other stakeholders to manage the potential impacts on the community of droughts and other emergency events provide ongoing advice to customers about short-term water availability using communication tools such as the annual Water Outlook SUSTAINABLE DEVELOPMENT GOALS: FIVE-YEAR ACTION PLAN publish the water outlooks to meet community expectations to be more proactive, engaging and accessible [collaborative action with the water utilities in Melbourne] review the Drought Preparedness Plan every five years [collaborative action with the water utilities in Melbourne] work with councils to identify priority public assets (e.g. open spaces such as sporting grounds and parks and gardens) to meet liveability outcomes by March 2018 [collaborative action with the water utilities in Melbourne] SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

106 7 WATER-RELATED URBAN AMENITY FOR THE COMMUNITY CHAPTER KEY POINTS We will focus on all elements of the total water cycle so our communities can thrive in all climates. We plan to work with our customers to create linkages between water-related urban amenity (liveability) and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions. We have successfully used assessments of the total water cycle in a number of growth areas including Melbourne s northern suburbs (see case study) and the Doncaster Hill development and are using this approach in the La Trobe and Monash National Employment Clusters Water for Victoria has established catchment-based Integrated Water Management (IWM) Regional Forums to identify priority places for detailed investigation of place-based outcomes with the community and partners. We plan to actively participate in these forums. A key role of any water utility is to ensure investments occur in water cycle assets and initiatives, to ensure levels of service are met for the growing community, and the desired environmental outcomes are achieved. We have developed, in conjunction with the other water utilities in Melbourne, a framework to support future investment in a consistent and transparent manner. 106 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

107 YARRA VALLEY WATER URBAN WATER STRATEGY

108 DELIVERING WATER RELATED URBAN AMENITY 7.1 INTRODUCTION One of Water for Victoria s objectives is: 23 We will help transform Victorian cities and towns into the most resilient and liveable in the world. We will include all elements of the urban water cycle in the way we plan and manage water so that Victorian communities can continue to thrive in all climates. The ultimate aim is for Melbourne to be classified as a water-sensitive city a water-sensitive city considers all aspects of the water cycle and supports lifestyle outcomes through urban heat mitigation and the provision of ecological landscapes and urban waterscapes. As mentioned in section 2.6, Melbourne is moving towards being a water-sensitive city and can currently be described as a waterways city, due to its highly reliable supply of fit-for-purpose water for essential daily activities safe and reliable sewerage systems waterway restoration and protection flood management elements of whole-of-water-cycle management. Melbourne uses a total water cycle approach, applying integrated water management, as described earlier. This process goes beyond institutional boundaries to consider best-for-community outcomes. It takes into consideration community values and the different needs for water in a local, place-based context. It considers all parts of the water cycle in order to deliver sustainable and resilient water services. An example of our use of integrated water management in the northern growth area is described below in this chapter. Our customers tell us that community connectedness, parks and gardens, sports, and mental and physical health are important aspects of their preferred lifestyles. Water is an essential service that supports these preferred lifestyles, through the provision of: safe, secure and affordable water supplies in an uncertain future (Water for Victoria) effective and affordable sewerage systems. As indicated in Chapter 3, there is a need to create linkages between Melbourne's water-related urban amenity and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions. Through an integrated approach to planning, we can support Melbourne Water and local government in the provision of: effective stormwater management protects our urban environment healthy and valued urban landscapes. 7.2 COMMUNITY BASED OUTCOMES THROUGH INTEGRATED WATER MANAGEMENT We have successfully used consideration of the total water cycle in a number of growth areas including Melbourne s northern suburbs and the Doncaster Hill development and are using this approach in the La Trobe and Monash National Employment Clusters. Figure 34 shows our main integrated water management projects. We are proactively working with communities and other partners such as councils and Melbourne Water s, to identify the best community solutions for each project. For each place, our planning approach identifies shared benefits through: working with our partners such as local councils and Melbourne Water working with local communities to identify water-related urban amenity options, costs and benefits having a shared vision of the outcomes for the area having an agreed evaluation framework identifying the benefits and costs and, ultimately, cost-sharing arrangements. The Merri Creek Waterway investment prioritisation project is a recent example of this approach (see case study). 23 Ibid, p YARRA VALLEY WATER URBAN WATER STRATEGY 2017

109 CASE STUDY NORTHERN GROWTH AREA The northern growth area stretches from just north of Craigieburn to the north of Wallan township and includes the suburbs of Mickleham, Kalkallo, Donnybrook, Beveridge, Woodstock and Wallan. This area will provide for approximately 100,000 new dwellings and is expected to be fully developed by We took a leading role in providing integrated water management planning for the area. Driving factors for an integrated, place-based approach included significant sewerage upgrade costs (approx. $300 million) and the protection of high-value waterways within the corridor. We partnered with The Department of Environment, Land, Water and Planning, Melbourne Water, the Victorian Planning Authority and relevant councils to apply a whole-of-catchment approach to water management. The participants outlined goals for reducing use of drinking water, increasing use of alternative local water sources, reducing stormwater runoff into waterways and improving liveability and community health. The evaluation compared a conventional servicing option against three integrated water cycle options. The conventional approach consists of existing water sources, water and sewer network upgrades and current best practice stormwater management. The integrated options each comprised a mix of a number of water cycle servicing elements including: recycled water supply broad-scale mandate of rainwater tanks (including supply as hot water) stormwater harvesting for drinking water supply various stormwater retardation and quality improvement approaches. The analysis confirmed that there is a strong case for continued implementation of recycled water supply in the corridor, via a third pipe network. The use of rainwater tanks was considered not to be appropriate as a regional option as they provided little benefit in isolation. The economic analysis informed the industry investment evaluation framework. We are continuing to collaborate with Melbourne Water to confirm the feasibility of harvesting stormwater flows for drinking water supply to improve stormwater management outcomes and protect the upper reaches of the waterways. This work is being led by Melbourne Water and is complementary to our recycled water supply strategy. YARRA VALLEY WATER URBAN WATER STRATEGY

110 Figure 34: Our integrated water management opportunities 110 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

111 CASE STUDY LA TROBE NEC - AN EXAMPLE OF AN INTEGRATED PLANNING APPROACH The La Trobe National Employment Cluster (NEC) sits within the northern sub-region of Melbourne and is located north-east of Melbourne s Central Business District. The investigation area is focused on four existing precincts: La Trobe University Heidelberg West Industrial Northland Shopping Centre Heidelberg/Austin medical. The La Trobe NEC has been identified as an area of significant growth in commercial and industrial activity, and densification of residential housing. An additional 40,000 dwellings are expected here by The La Trobe cluster is home to a significant stretch of the Darebin Creek, which runs the length of the cluster. Major employers in the cluster include La Trobe University, Northland Shopping Centre and Austin Health. An integrated approach to planning has been adopted, and the preliminary work that has been completed: was led by the Victorian Planning Authority included primary contributors and stakeholders of Banyule and Darebin Councils, Yarra Valley Water, Melbourne Water and The Department of Environment, Land, Water and Planning Invited Austin Health, La Trobe University and Northland Shopping Centre to attend workshops to develop the integrated water management plan. It was identified early that the management of stormwater was the most critical issue within the cluster due to the risk of significant impacts to Darebin Creek resulting from the industrial precincts. It was also noted that: the integrated water management plan incorporates our base case servicing assessments, as well as a range of integrated servicing solutions for stormwater management within the cluster measures identified for stormwater management include; first flush stormwater diversion to sewer, stormwater harvesting for use in public open space, tree pits, and vegetated swales. The next steps for us are: supporting the council to review the opportunities and drivers for implementation of a higher standard of Water Sensitive Urban Design within the precinct continuing to explore the best outcomes for the cluster and how these could be achieved, to support the preferred lifestyles of the current and future La Trobe community continuing to integrate the planning into the development of a formal Yarra Valley Water growth servicing strategy for the cluster. YARRA VALLEY WATER URBAN WATER STRATEGY

112 CASE STUDY MERRI CREEK WATERWAY INVESTMENT PRIORITISATION PROJECT The Merri Creek is a waterway flowing through the northern suburbs of Melbourne. It begins north of Melbourne and flows south for 70km until it joins the Yarra River at Dights Falls at Abbotsford. The Merri Creek waterway corridor is subject to management by several agencies that often have different regulatory motivators. Management agencies often invest in individual management actions with a regulatory focus, which may not deliver real community benefits for the money invested. Providing the best possible community outcomes for investment of public money in the Merri Creek corridor was a key objective for this project. This pilot study used a focus on community outcomes to guide collaborative investment decision making. The outcomes-based approach involved assessment of alternative approaches to managing risks to community satisfaction and waterway health. The Department of Environment, Land, Water and Planning provided an adaptive framework to facilitate collaboration between the relevant management agencies. The study found that by focusing on waterway outcomes, better community outcomes would be delivered. Taking a community outcome focus to prioritising investment by agencies presented potential savings of $10 million over the next five years (approximately 50% reduction). Our traditional focus on sewer upgrades in the catchment was found not to deliver measureable benefits to public health outcomes related to Merri Creek or its receiving waterways. A key conclusion was that more efficient and effective investment decisions would be made if community feedback and evidence-based waterway outcomes are used, potentially leading to innovative and alternative approaches for waterway improvement. The key lessons learnt in this study were: collaboration between agencies to prioritise investment decisions can deliver significant cost savings and improved outcomes for the community an adaptive framework for decision making is required for collaborative agency decision making and continual monitoring and improvement of waterway health it would be preferable if policy instruments such as the new State Environmental Protection Policy (Water) {under preparation}, included outcomes-based approaches and a risk framework. 112 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

113 7.3 INTEGRATED WATER MANAGEMENT FORUMS Water for Victoria has established catchment-based Integrated Water Management (IWM) Forums to identify priority places for detailed investigation of place-based outcomes with the community and partners. The process to be followed by each IWM Forum is shown in Figure 35. In the metropolitan area there will be five forums Maribyrnong River, Werribee River, Yarra River, Dandenong Creek and Westernport catchments. We plan to: participate and provide leadership where appropriate in collaborative IWM Forums to identify and prioritise future opportunities to apply an integrated approach participate in the development of IWM plans for priority areas develop our capability to participate in IWM Forums (developing the next generation of IWM leaders). Figure 35: Overview of Integrated Water Management Planning Framework to be guided by IWM Forums (redraw) STAGE 1 Establish Integrated Water Management Forum Organisations come together to discuss integrated water management opportunities and priorities for each region Vision and objectives agreed. Opportunities identified and prioritised. Sub groups to progress prioritised projects. Local Government Catchement Management Authorities Water Corporations Department of Environment, Land, Water and Planning Chair STAGE 2 Development of IWM Plans Sub groups will form based on prioritised projects to develop IWM plans IWM FORUMS Place based outcomes, objectives and service levels developed for each project plan. Technical and economic analysis and project delivery arrangements determined. Multiple benefits achieved. Relevant organisations who are a part of a sub group (determined in stage 1) STAGE 3 Incorporation of IWM Plan commitments into coporate plans and strategies Organisations may wish to incorporate elements of IWM Plans into their own organisation planning system E.g. Council Plan Organisational reporting Organisational support Individual organisations who have committed to a project STAGE 4 Delivery of projects IWM Plans are implemented Additional community value achieved through collaberation Economic savings through shared costs Improved resilience and liveability of cities and towns Individual organisations who have committed to a project YARRA VALLEY WATER URBAN WATER STRATEGY

114 CASE STUDY INTEGRATED WATER MANAGEMENT (IWM) REGIONAL FORUMS IWM Forums, facilitated by an appointed independent chairperson, will coordinate IWM planning across the forum s geographical area. Participants each identify opportunities to collaborate and form partnerships to deliver integrated servicing solutions and bring these to the IWM Forums for consideration. The IWM Forums will prioritise these opportunities using an opportunity/risk-based approach that considers: timing of the servicing need scale of the servicing need business as usual cost of the servicing need additional benefits (including cost reductions) that may be leveraged from meeting the servicing need through an integrated approach community views. The IWM Forums will also develop and oversee the prioritised work programs for investigating these opportunities through IWM Plans. IWM Forums will cover all urban areas across Victoria. In the metropolitan area there will be five forums Maribyrnong River, Werribee River, Yarra River, Dandenong Creek and Westernport catchments. In some instances, these forums are already in place, but in most parts of Victoria they will need to be established. IWM Forum participants will include: the appointed independent chairperson representatives from water corporations representatives from local government representatives from catchment management authorities representatives from the Department of Environment, Land, Water and Planning-regional office and Water and Catchments Division participants from other relevant organisations (e.g. Victorian Planning Authority, VicRoads, Parks Victoria, EPA, Department of Health and Human Services, health providers) representatives of Traditional Owner interests as determined through forum-specific discussions with Aboriginal partners local research and educational experts, where relevant. For water corporations, local government and catchment management authorities, representation will be from both executive and operational management levels. The Department of Environment, Land, Water and Planning, 2016 Integrated Water Management Framework for Victoria, An IWM approach to urban water planning and shared decision making throughout Victoria 114 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

115 7.4 INVESTMENT EVALUATION FRAMEWORK Our objective is to deliver the desired community outcomes in the most efficient way by building a clear understanding of the options available. A key role of any water utility is to ensure investments occur in water cycle assets and initiatives, to ensure levels of service are met for the growing communities, while the desired environmental outcomes are achieved. Decision-making is often a complex process. There are various community-wide benefits and costs related to each investment and it is important to assess this in a consistent manner. How we value water in the community and the environment has progressed significantly in the last few years. It is now standard practice to consider water-related investments in an integrated manner. A robust investment evaluation considers the direct, indirect and externality costs and benefits of proposed options from a whole-of-community perspective. We have developed, in conjunction with the other water utilities in Melbourne, a framework to support future investment in a consistent and transparent manner (Figure 38). The framework provides the user with a consistent set of guidelines as well as input assumptions developed in consultation with water retailers in Melbourne, Melbourne Water and The Department of Environment, Land, Water and Planning. The framework is jointly owned and endorsed by the water utilities in Melbourne and it will be reviewed periodically to ensure that it captures the latest information. We will participate in the ongoing development of the investment evaluation framework. Figure 36: Investment Evaluation Framework Provide evaluation of our IWM options to ensure whole of community costs, benefits and outcomes are considered WHY? Ensure all aspects of water cycle captured (environment / liveability) Transperancy between entities WHAT? Provide consistent understanding and approach of how we value the water cycle and envirnment liveabiliy across the water industry HOW? Consistent assumptions / principles Joint ownership (MW lead) Periodic review YARRA VALLEY WATER URBAN WATER STRATEGY

116 7.5 OUR STRATEGY FOR WATER-RELATED URBAN AMENITY LONG-TERM DIRECTIONS work with our communities and partners to identify the best community solutions for priority places (such as new growth areas and National Employment clusters) participate in catchment-based Integrated Water Management forums participate in ongoing development of the Investment Evaluation Framework developed by the water utilities in Melbourne SUSTAINABLE DEVELOPMENT GOALS: FIVE-YEAR ACTION PLAN work with our customers to create linkages between waterrelated urban amenity (liveability) and the fundamental roles water plays, and build understanding of what customers are paying for to boost value perceptions work with our communities and partners to identify the best community solutions for priority places (such as new growth areas and National Employment clusters) continue to lead and participate in place-based urban planning that involves Traditional Owners, local councils and Melbourne Water actively support Department of Environment, Land, Water and Planning in the formation and delivery of the integrated water management forums and plans and participate in catchment-based integrated water management forums [collaborative action with the water utilities in Melbourne] consider all of the benefits of alternative water projects when developing business cases based on the scenarios from urban water strategies and work to ensure alignment of implementation across the industry. Quantify further benefits on liveability outcomes and health benefits and review the principles of recycled water and stormwater pricing by 2019 for inclusions in business cases [collaborative action with the water utilities in Melbourne] SUSTAINABLE DEVELOPMENT GOALS: IMAGE: Rob Fittock, Project Manager, and Karen De Villiers, Communications Manager, inspecting reinforced plastic (GRP) maintenance hole channel liners, Amaroo Main Sewer project 116 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

117 YARRA VALLEY WATER URBAN WATER STRATEGY

118 118 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

119 8 ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS CHAPTER KEY POINTS Customer and community engagement are central to achieving sustainable outcomes for our Urban Water Strategy. We have a track record in engaging with our customers to achieve successful outcomes (e.g. Park Orchards Community Sewerage Scheme and Doncaster Hill recycled water project). Our Reconciliation Action plan recognises Aboriginal communities connection to Country. We will work with Traditional Owners and Aboriginal communities to deliver shared benefits over the next 50 years and beyond. YARRA VALLEY WATER URBAN WATER STRATEGY

120 ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS 8.1 COMMUNITY ENGAGEMENT Customer and community engagement are central to our vision. We have a strong record in community engagement for all projects and programs. Our Community Sewerage Program, for example, is delivering sustainable sanitation services to 14,000 unsewered properties in our service area. The Doncaster Hill and Park Orchards case studies that follow are examples of our approach. Community engagement is central to our ongoing planning process. We constantly use community input to guide us in our decision-making and delivery. We believe that some of the best decisions and innovation come as a result of listening, analysis and understanding. For example, customers have told us that there is an opportunity to better engage with the community about ongoing water availability planning. We have already initiated a wide-ranging community engagement effort to develop our price determination submission, using over 28,000 inputs to shape how we can deliver value. Ongoing community engagement will continue to support the future development of our Urban Water Strategy and how we manage its delivery. 8.2 ENGAGEMENT WITH TRADITIONAL OWNERS AND ABORIGINAL COMMUNITIES During 2016, we developed our Reconciliation Action Plan (RAP), which has now been endorsed by Reconciliation Australia. This document will be the cornerstone of Yarra Valley Water s commitment to make a meaningful contribution to reconciliation and Aboriginal and Torres Strait Islander affairs. Our Reconciliation Working Group, which led the development of the RAP, comprises staff from across the organisation and three external members Karen Milward, an Aboriginal consultant who chaired the group, and representatives from Wurundjeri and the Mullum Mullum Indigenous Gathering Place. The RAP was developed through a series of workshops and consultations with staff, external members and Aboriginal organisations, Elders, Wurundjeri and Bunurong Land Council. Our vision for reconciliation was developed through this process: We have enduring, proactive and respectful relationships with Aboriginal and Torres Strait Islander peoples which support developing a shared commitment to Country, water and thriving communities. We proudly acknowledge the Traditional Owners of the land on which we work and live, and pay respect to their Elders past and present. We also acknowledge and pay respect to other Elders within the community. We recognise and value the continuing rich cultures and the contribution of Aboriginal and Torres Strait Islander peoples and communities to the Victorian community. Our RAP outlines the overall, holistic approach that we will take to strengthen how we engage and work with Aboriginal and Torres Strait Islander people, organisations and Traditional Owner groups. Like our vision, this includes a strong emphasis on building relationships and jointly developing our capabilities to engage with each other. The actions for the next three years, under the themes of respect, relationships and opportunities, are aimed at getting to know our community and how we can best engage with each other, including working with our other stakeholders where appropriate; empowering our staff to be more culturally responsive by, for example, improving our understanding of Aboriginal peoples, history and relationship with Country; and also identifying how we can support procurement and employment opportunities. These actions provide the context for how we will engage with Traditional Owners and the broader Aboriginal community in developing and delivering our urban water strategies. Key actions include: developing and maintaining relationships across the business with Traditional Owners, Aboriginal Community Controlled Organisations (ACCOs) and local service providers, to support meaningful consultation and engagement practices engaging our staff in cultural learning opportunities to increase understanding and appreciation of Aboriginal and Torres Strait Islander cultures, histories and achievements empowering our staff to be more culturally responsive by providing information resources and engaging them in understanding the significance of cultural protocols such as Welcome to Country and Acknowledgement of Country identifying and supporting Aboriginal and Torres Strait Islander employment opportunities at Yarra Valley Water supporting procurement opportunities to effectively engage with Aboriginal and/or Torres Strait Islander businesses. We recognise the criticality of a coordinated approach where appropriate, and we have been working with the water utilities in Melbourne, in particular, to develop this joint approach in relation to the participation of Traditional Owners. 120 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

121 We recognise the strength of building our knowledge and experience jointly, as we meet initially with the Traditional Owners to develop some principles and approaches for this engagement. To this end, we have met collectively with the Bunurong Land Council, Wadawurrung and Wurundjeri to date to commence these conversations, based on the themes shown in Water for Victoria as outlined in Figure 37. We have jointly agreed that we will: We will work collaboratively across the water sector to develop long term meaningful relationships with the Traditional Owners in the metropolitan region to better integrate cultural water needs into water resource management, and ensure their contribution to the future of water management. We will aspire to create relationships and actions that enable the co-design, codevelopment and co-management of water resources. Developments requiring recycled water Doncaster hill Legend Mandated for recycled water (not connected yet) DONCaster CASE STUDY DONCASTER HILL RECYCLED WATER PROJECT Doncaster Hill, located in the City of Manningham, is a sustainably designed, high-density residential and commercial precinct undergoing urban renewal. We are planning to deliver a recycled water servicing solution for the area to create more liveable and resilient communities. Project benefits include reducing drinking water use by around 20 per cent, decreasing energy use (when compared to a conventional project) by around 10 per cent, and reducing nitrogen flows into Port Phillip Bay. We first initiated the project in 2011, proposing the most technically feasible servicing option for the scheme, and presented this option to the community in and around Doncaster Hill. The option involved situating a new treatment plant near an existing major sewer, allowing for convenient wastewater extraction, which could then be treated to a Class A standard, before being piped through a recycled water reticulation network to properties in the precinct. The community supported the idea of providing recycled water to the area but was opposed to the proposed site of the treatment plant. Based on the sentiment at the time, the project did not proceed at the nominated site. We remain committed to providing a recycled water service to Doncaster Hill and have continued to investigate other site options. We have also been considering how to better engage the community about this important project, and have decided to initiate an engagement approach that seeks to work cooperatively with the local community to design a preferred solution together. Our future engagement efforts will be based on developing a quality, constructive and reasonable evidence-based engagement process that will be transparent and open to scrutiny. As the water industry continues to deliver servicing solutions and to respond to important community and environmental challenges, finding effective ways to bring people along on the journey, no matter how complex the issues may be, will need to become central to any engagement efforts. YARRA VALLEY WATER URBAN WATER STRATEGY

122 CASE STUDY PARK ORCHARDS TRIAL PROJECT Park Orchards, a leafy suburb in Melbourne s north-east, is home to 1250 properties with septic tanks or small on-site treatment plants. These systems are not always able to contain wastewater on-site, so the local council asked us to provide a sewerage system for the area. Parts of the community had some concerns about installing a traditional piped network and requested we investigate the feasibility of upgrading the existing septic tank systems to provide a reliable and efficient sewerage servicing solution. Initial investigations concluded that most properties in the area could be sustainably serviced in this way. We are conducting a trial of 75 properties (out of 100 in the trial area) to test the feasibility of this as a longer-term solution and to explore implementation models and the roles of the various stakeholders. A key element of the trial involves extensive community engagement focused on working closely with trial participants, as well as with the wider community, to ensure consistent awareness of the trial project and its goals. Key engagement initiatives are being implemented throughout the trial project. In 2013, we established a community panel comprising selected Park Orchards residents. The panel provides advice and feedback to Yarra Valley Water to ensure our communications and engagement programs effectively involve the Park Orchards community and help identify potential issues during the trial. The community panel continues to be an important sounding board for us and is contributing to building greater trust between Yarra Valley Water and the Park Orchards community. We also liaise with community groups in Park Orchards to capture their views, and meet with stakeholders including the Environment Protection Authority Victoria, Manningham City Council and The Department of Environment, Land, Water and Planning all signatories to a Memorandum of Understanding with us. These meetings enable a proactive approach to managing regulatory issues and allow a single point of contact to resolve regulatory uncertainties as they arise. Ensuring customers understand the practicalities of sewerage solutions is challenging. Our engagement approaches and communication materials have been designed to ensure they are inclusive and provide clear, easily understandable and timely information. While customers currently live with a septic system, their general knowledge of how best to manage the system varies. The trial is expected to run until 2019, when the results can be used to select the best sewerage solution for the people of Park Orchards. 122 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

123 Figure 37: Aboriginal water values and uses 24 Recognition Environmental water Shared benefit Rights, responsibilities and selfdetermination V a lu es a n d u ses C u ltu re is d y n a m ic Jobs and capacity Planned water Water entitlement Works, measures and projects 24 The State of Victoria Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October, p OUR ENGAGING THE COMMUNITY AND TRADITIONAL OWNERS STRATEGY LONG-TERM DIRECTIONS community engagement will continue to be fundamental to the way we work we will take a holistic approach to strengthen how we engage and work with Traditional Owner groups and Aboriginal and Torres Strait Islander people and organisations we will work collaboratively across the water sector to develop long-term meaningful relationships with Traditional Owners in the metropolitan region to better integrate cultural water needs into water resource management, and ensure their contribution to the future of water management. We aspire to create relationships and actions that enable the co- design, co-development and comanagement of water resources. [collaborative action with the water utilities in Melbourne] SUSTAINABLE DEVELOPMENT GOALS: FIVE-YEAR ACTION PLAN work collaboratively across the water sector to develop long term meaningful relationships with the Traditional Owners in the metropolitan region to better integrate cultural water needs into water resource management, and ensure their contribution to the future of water management. We aspire to create relationships and actions that enable the co-design, co-development and co-management of water resources [collaborative action with the water utilities in Melbourne] continue to engage with our customers on water and sewerage service and planning matters ongoing research into customer perceptions of value and performance SUSTAINABLE DEVELOPMENT GOALS: YARRA VALLEY WATER URBAN WATER STRATEGY

124 APPENDICES APPENDIX 1 Bulk Water Supplies page 125 APPENDIX 2 Climate Change page 128 APPENDIX 3 Our Customers Voice page 131 APPENDIX 4 Current Demands page 134 APPENDIX 5 Sewerage Planning page 136 APPENDIX 6 Status and actions at existing and planned local sewage treatment plants page YARRA VALLEY WATER URBAN WATER STRATEGY 2017

125 APPENDIX 1: BULK WATER SUPPLIES WHERE DOES OUR WATER COME FROM? MELBOURNE WATER SUPPLY SYSTEM Most of Melbourne s drinking water comes from protected catchments forested areas to the north and east of the city that stretch along the Great Divide, from Wallaby Creek in the west, to Thomson Reservoir in the east. Thomson Reservoir is the largest storage in the system and can hold more than two years worth of supply when full. Because of its size, Thomson provides our most important drought reserve, allowing us to bank water in wetter years that we draw on during dry periods. Water from the Thomson system is transferred into Upper Yarra Reservoir, where it mixes with water collected from protected catchments in the upper reaches of the Yarra River. Water is also harvested from the mid-section of the Yarra River it is pumped from the river at Yering Gorge into Sugarloaf Reservoir. Several creeks and smaller rivers are diverted into reservoirs like Yan Yean Reservoir north of Melbourne, and Tarago Reservoir in Gippsland. Water harvested at these sites comes from a mix of open and closed catchments and is filtered to ensure it meets the high quality for which Melbourne s water is renowned. Water from the off-stream storages is transferred to a number of much smaller service reservoirs dotted around the city and then distributed to customers. Major harvesting sites in the system are connected to offstream storage reservoirs that don t have a catchment of their own, but provide additional capacity to hold water within the system. Silvan and Cardinia reservoirs are off-stream storages that take water transferred from Upper Yarra and several smaller protected catchments, including O Shannassy Reservoir and other tributaries of the Yarra. Figure 1: Sources of supply for Yarra Valley Water* YARRA VALLEY WATER URBAN WATER STRATEGY

126 Table 1: Major storages in the Melbourne supply system Storage Storage type Capacity Percentage of total system capacity Thomson Reservoir On-stream 1,068 GL 59% Upper Yarra Reservoir On-stream 201 GL 11% O Shannassy Reservoir On-stream 3 GL 0.2% Silvan Reservoir Off-stream 40 GL 2.0% Cardinia Reservoir Off-stream 287 GL 16% Maroondah Reservoir On-stream 22 GL 1.2% Sugarloaf Reservoir Off-stream 96 GL 5.3% Yan Yean Reservoir Off-stream 30 GL 1.7% Tarago Reservoir On-stream 38 GL 2.1% Greenvale Reservoir Off-stream 27 GL 1.5% System total - 1,812 GL 100% While the catchments are the primary source of drinking water, the Victorian Desalination Project provides a climateindependent source of water that can be used as necessary to bolster water availability. Water from the Victorian Desalination Project is transferred by pipe from the plant near Wonthaggi to Cardinia Reservoir where it mixes with water from the catchments before being distributed to customers. The Victorian Desalination Project can produce up to 150 GL (150 billion litres) of water per year, or about one third of Melbourne s current water use. In times of critical need (when Melbourne s storages are below 30% full), we can access water from our Northern Victorian water entitlements (the Goulburn system and the River Murray). This water is stored in Lake Eildon and can be transferred to Sugarloaf Reservoir from the Goulburn River at Yea via the Sugarloaf (North-South) Pipeline. YARRA VALLEY WATER SOURCES Yarra Valley Water holds entitlements to water stored in the Greater Yarra System Thomson River pool part of the Melbourne water system. While the amount of water allocated to us from this pool is dependent on the total combined amount of water harvested within the Melbourne system, the water supplied to our customers is from a range of sources, mostly from those closest to them. Figure 2 shows the relative proportion of our customer demand met by each of the storages and sources connected to our network. The majority of water supplied to our customers comes from the protected catchments of the Yarra and Thomson rivers via Silvan Reservoir (62% of demands in 2015/16), and Greenvale Reservoir (10% in of demands in 2015/16). A smaller number of customers in Yarra Valley townships are supplied with water from Upper Yarra Reservoir as it is transferred south to Silvan (less than 1% in 2015/16), while customers around Healesville and Yarra Glen are supplied with filtered water from Maroondah Reservoir. Many of our customers receive at least some of their water from Sugarloaf Reservoir, which is filtered at Winneke Treatment Plant. A small number of customers in the northern suburbs receive water direct from Winneke Treatment Plant (Sugarloaf Reservoir), but mostly it is blended with water from Silvan Reservoir. Water stored in Sugarloaf Reservoir supplied about 20% of our consumption in In the future, this water will at times be mixed with filtered water from Yan Yean when it is operating. Some of our customers near the boundary with South East Water receive water from the protected Yarra and Thomson catchments via Cardinia Reservoir in Melbourne s south-east (7% in 2015/16). When the Victorian Desalination Project is producing water, it is delivered into Cardinia Reservoir to mix with water from the Yarra and Thomson systems. This means that our customers that receive their supply from Cardinia Reservoir would receive this mixed water. In , no water was supplied from the Victorian Desalination Project, however in some of the 50GL of water is to be delivered from the plant and will go to the small number of our customers that receive their supply from Cardinia Reservoir. Yarra Valley Water holds the following bulk entitlements shown in Table 2. These are rights to the use and supply water from particular catchments or sources granted by the Minister for Water. With each bulk entitlement, there are ongoing annual financial obligations to pay for the costs of harvesting and storing of water by either Melbourne Water or Goulburn Murray Water. 126 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

127 Figure 2: Relative proportions of supply sources YARRA VALLEY WATER - SOURCE WATER 2015/16 Maroondah.5% Upper Yarra 0.5% Winneke 20% Cardinia 7% Silvan 62% Greenvale 10% Table 2: Yarra Valley Water s bulk entitlements Bulk Entitlement Volume (ML) Total System Volume (ML) Greater Yarra System Thomson River pool YVW % total system 219, , % Desalinated Water 56, , % Goulburn system 10,942.0 River Murray 7,966.6 High Reliability: 944,610 Low Reliability: 413,685 High Reliability: 1,220,863 Low Reliability: 300, % 0.52% TOTAL 295, /16 bulk water use 159,762 With each bulk entitlement, we obtain an annual allocation related to the bulk entitlement volume as follows: Greater Yarra System Thomson River pool: share of net monthly inflows to the Greater Yarra system storages and Thomson Reservoir based on our proportion of the total pool Desalinated Water: share of the annual water order placed by the Minister for Water with Aquasure for delivery from the Victorian Desalination Project in proportion to our bulk entitlement volume Goulburn system: one-ninth share of the audited annual water savings for the preceding financial year from Stage 1 of Goulburn Murray Water s Connections Project River Murray: one-ninth share of the audited annual water savings for the preceding financial year from Stage 1 of Goulburn Murray Water s Connections Project. We are able to carry over any stored water from one financial year to the next, in accordance with the respective carry over rules. YARRA VALLEY WATER URBAN WATER STRATEGY

128 APPENDIX 2: CLIMATE CHANGE 1. MELBOURNE S CHANGING CLIMATE Increasing greenhouse gas (GHG) concentrations from anthropogenic activities is causing changes in the climate globally. The Intergovernmental Panel on Climate Change s (IPCC) Fifth Assessment Report 25 states that the world increased in temperature by 0.85 [0.65 to 1.06] C between 1880 to Since 2012 climate records have continued to be broken, with 2015 being the hottest year on record. These rising temperatures have resulted in intense heatwaves, exceptional rainfall events, drought and unusual tropical cyclone activity across the globe. 26 Victoria has not been immune from these changes in climate. The last 30 years have seen significant changes in temperature and rainfall compared to the long-term records. 27 These changes are highlighted below in Figures 1 and 2. Figure 1: Annual mean temperature anomaly for Victoria based on mean climate ºc 0.5ºc Mean temperature anomaly 0ºc -0.5ºc -1.0ºc Global temperature 5 year rolling average -1.5ºc IPCC, World Meteorological Organisation (2015) 27 Timbal, B. et al. (2016), Climate change science and Victoria, Victoria Climate Initiative (VicCI) report, Bureau of Meteorology, Australia, Bureau Research Report, 14, 94 pp 28 The State of Victoria Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October, p YARRA VALLEY WATER URBAN WATER STRATEGY 2017

129 Figure 2: Change in average rainfall for April to October Figures 1 and 2 highlight the significant increases in temperature and decreases in rainfall that Victoria and Melbourne have experienced in the past two decades. These changes have impacted on both water utilities and the community through decreasing streamflows, increasing demand for water, increasing bushfire risk and increasing health impacts from extreme heat events. Carbon emissions are generated through providing water to our customers and capturing and treating sewage. In , Yarra Valley Water emitted 33,764 tonnes of CO2-e. It is expected that, due to increasing demand for water and increased production of sewage in the future, carbon emissions will increase unless action is taken to mitigate this increase. 2. A FUTURE WITH CLIMATE CHANGE We need to be prepared for changing climate conditions. In addition to increasing temperatures and decreasing rainfall, which are expected to continue, there are a number of other changes predicted to occur in the future. They include: reduced winter streamflows increasing average and minimum temperatures more frequent and intense droughts sea level rise. increased severity and intensity of storms and bushfires more frequent and intense heatwaves more intense rainfall events. These changes in climate will have a significant impact on Yarra Valley Water and the broader community. Some identified risks of climate change to the water sector include: insufficient water supply and reduced water quality a major bushfire in critical water supply catchments frequent or extended disruption to electricity and telemetry systems increased asset deterioration decreased waterway and aquatic ecosystem health increased flash flooding impacts on the safety and wellbeing of staff. The risks highlighted above have significant financial implications for water utilities as a result of insurance premiums and responding to extreme weather events. These risks also have implications for the communities we serve as they impact service reliability and affordability. 3. CLIMATE CHANGE MITIGATION COMMITMENTS The Paris Agreement, resulting from the United Nations Framework Convention on Climate Change (UNFCCC) Conference of Parties (COP21) in December 2015, seeks to accelerate and intensify the actions and investment needed for a sustainable low carbon future and keep global temperatures from rising more than 2 degrees Celsius in the post 2020 period. 30 In response to the Paris Agreement, the Victorian Government has set two ambitious targets for both greenhouse gas emissions and renewable energy generation: achieve net-zero emissions by 2050 generate 25% of the state s electricity from renewable sources by 2020 and 40% by The renewable energy and greenhouse gas targets set by the Victorian Government form part of the Victorian Climate Change Framework for Action. This framework also focuses on increasing the climate resilience of infrastructure and communities to ensure they are prepared for the impacts of climate change. 29 Ibid, p36 30 United Nations Framework Convention on Climate Change, Paris Agreement UNFCCC < paris_agreement_english_.pdf>. YARRA VALLEY WATER URBAN WATER STRATEGY

130 4. HOW IS THE WATER INDUSTRY RESPONDING TO CLIMATE CHANGE? Yarra Valley Water and the broader water industry, through the Water industry in Melbourne Climate Change Committee, are committed to contributing to the Victorian Government s targets for both climate change adaptation and mitigation. As an industry, we will continually build our understanding of climate change and work with our communities and stakeholders to ensure the sector is well placed to adapt to climate change. We will create partnerships with organisations both nationally and internationally to ensure we prudently and effectively invest in the best available solutions. Future industry-wide opportunities to reduce emissions include enhancing the energy efficiency of our assets and generating renewable energy. Opportunities to increase the resilience of our assets will be achieved by integrating climate models and scenarios into our long-term decision making processes. 5. REFERENCES The Department of Environment, Land, Water and Planning (2016) Guidelines for Assessing the Impact of Climate Change on Water Supplies in Victoria CSIRO and Bureau of Meteorology (2015) Climate change in Australia. Information for Australia s natural resource management regions: Technical report, CSIRO and Bureau of Meteorology, Australia Gergis, J, Gallant AJE, Braganza, K, Karoly, D, Allen, K, Cullen, L, D Arrigo, R, Goodwin, I, Grierson, P, McGregor, S (2012) On the long-term context of the Big Dry in South- Eastern Australia: insights from a 206-year multi-proxy rainfall reconstruction, Climatic Change 111: DOI / s x Intergovernmental Panel on Climate Change (IPCC) (2014) Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R.K. Pachauri and L.A. Meyer (eds.)]. IPCC, Geneva, Switzerland, 151 pp. Rockefeller Foundation and City of Melbourne (2016) Resilient Melbourne Strategy. Water Services Association of Australia (WSAA) (2016) Climate Change Adaptation Guidelines. Project Report WSA v1.2. February WSAA. World Meteorological Organisation (2016) WMO Statement on the Status of Global Climate in World Meteorological Organisation. 130 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

131 APPENDIX 3: OUR CUSTOMER ENGAGEMENT INTRODUCTION This appendix provides additional details on aspects of the customer research outlined in Chapter 3. OBJECTIVE 1: UNDERSTAND AND DEFINE THE VALUE CUSTOMERS PLACE ON WATER AND URBAN WATER MANAGEMENT, AND THE OUTCOMES SOUGHT. The community does not connect water with Melbourne s liveability (i.e. urban amenity) without guidance The community s perceived roles of water in liveability can be grouped into broad social, environmental, economic and personal categories. Social contributions and outcomes such as: 1. community connectedness and social cohesion through community areas such as sporting grounds, swimming pools and parks 2. mental, physical and emotional wellbeing of citizens through the above uses as well as personal uses (i.e. drinking, access to food, cooking, cleaning etc.) 3. negative social impacts of water restrictions, through reduced access to sports grounds and increased injuries from hardened grounds, as well as hostility between consumers during restrictions and using signs such as using recycled water to avoid disputes. Reduced water and browning of the environment was considered to have contributed to increased depression and aggression. One local council representative vowed to ignore council restrictions and continue watering sports and recreational areas both for the social benefits and costs associated with rehabilitation of such assets. Environmental contributions and outcomes such as: 1. plants and trees, which need water, and in turn provide multiple benefits such as: shade and shelter, particularly to avoid and reduce heat islands they are a source of pleasure, peace of mind, relaxation and de-stressing they absorb pollution and produce oxygen (this was only mentioned by a few). 2. healthy ecological systems (rivers, creeks, wildlife, etc.) are key to liveability and require water this was mostly mentioned in the stakeholder and residential customer groups. Economic contributions and outcomes such as: 1. use of water for industry, agriculture, production, transport and tourism as well as employment water is intrinsic to financial outcomes 2. stakeholders and business participants spoke of economic losses through reduced access to water (e.g. having to replace trees, rehabilitate open spaces, increased trade waste costs). personal contributions and outcomes such as: 1. recreational uses such as personal swimming pools, fountains and gardens. The key water outcome sought by the community is sustained access to clean, affordable water and effective waste management The research results suggest water utilities need to invest in customer engagement on both behaviour changes, and costs. This includes outlining the potential gains that can be made through behaviour changes. Just under a third (29%) preferred to make some changes at their premises while paying a little more see Figure 1. This was similar among SME participants (30%) and higher among workshop participants (49%). A small proportion (3%) said they would not change their behaviour, nor would they pay more. In the qualitative research, this was the same for just 5% of workshop participants, 2% of residential participants, and none of the SME participants. Many participants conceded that they could certainly do more to conserve water even some of those who didn t want to make any changes. This finding could be used to help encourage people to make changes. YARRA VALLEY WATER URBAN WATER STRATEGY

132 Figure 1: : Preferred approach to help ensure Melbourne has enough water PREFERRED APPROACH TO HELP ENSURE MELBOURNE HAS ENOUGH WATER 48% 52% More changes at home, not pay extra Some changes at home, pay some extra No changes at home, pay extra No changes at home, not pay extra Really don t know 28% 29% % 10% 9% % 7% 9% All residential quantitative participants (n=745) Q14: Appreciating this, which one of the following approaches would you prefer to help ensure Melbourne has enough water to meet the community s need? OBJECTIVE 2: UNDERSTAND COMMUNITY EXPECTATIONS FOR THE AVAILABILITY OF FUTURE WATER SUPPLIES FOR MELBOURNE. A more proactive practical approach to managing water customers want us to further encourage the efficient use of water and not waste it with the majority of customers not wanting to pay more. The customer research found a distinction in the preferences of customers in relation to restrictions between where there is enough water (as now) and where there is a water shortage. The use of restrictions is regarded as the most popular tool to manage demand in times of shortage with 65% support. Where there is enough water, customers see restrictions as a viable mechanism to manage wasteful behaviours (i.e. demand side behaviours) and not as a mechanism to manage water availability as customers want competent planning to ensure water for the future. The preferred approach of customers in managing the water system is to focus largely on proactively managing behaviours, encouraging water efficiency, continuing to develop and invest in alternative sources and technologies, and improving water literacy in the community. The discussion about water availability prompted many participants to view permanent water use rules as an important mechanism to guide consumers on acceptable uses of water. Many spoke of their memories of water restrictions making a real impact on their understanding of availability, and helping them and their communities to adapt their behaviours during the Millennium Drought. This included some people permanently changing behaviours around garden and lawn watering and the installation of water efficient appliances. Some added that voluntary actions would be insufficient to address scarcity. Many suggested permanent water use rules should always be in place, though they should be adjusted to suit the circumstances of the day, as well as social norms and expectations. Some unprompted discussion ensued, particularly in the stakeholder workshops, regarding alternative sources of water. The view among some participants was that desalination is still relatively unknown, somewhat controversial and may create a false sense of water availability. Meanwhile stormwater and grey water harvesting were commonly thought to be under-utilised. Recycled water was expected to play a larger role in future, despite still having a taboo that requires work to improve acceptability even for non-drinking purposes for some people. In general, participants felt they did not know enough about Melbourne s water system, how it is managed, water availability, or what can be done to ensure more secure supply in order to comment further. Permanint water saving rules remain highly valued and acceptable to customers, with many saying they should be in place in some form on an ongoing basis to keep people reminded about what is acceptable, and adjusted to suit the circumstances. Most prefer to endure mild restrictions than to pay more to avoid them (in total, net support was at 85%). The qualitative research asked how much participants supported or opposed the use of water restrictions to Figure 2: Use of water restrictions Support = 85% SENTIMENT TOWARDS RESTRICTIONS DURING SHORTAGES 65% - Strongly support (8-10) 20% - Somewhat support (6-7) 7% - Neither support / oppose ever be in place (5) 5% - Oppose (0-4) 3% - Dont know All residential quantitative participants (n=745) Q23: How much do you support or oppose the use of water restrictions to help manage water supplies during times of water shortage or drough? PREFERENCES FOR VOLUNTARY OR ENFORCED RESTRICTIONS 22% - Voluntary (guidelines) 70% - Enforced (with fines) 3% - No restrictions should ever be in place 5% - Don t know All residential quantitative participants (n=745) Q24: During times of water shortage do you think water restrictions should be voluntary or enforced? 132 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

133 help manage water supplies during times of severe water shortages or drought. On a scale where 0 meant totally oppose and 10 meant totally support, the vast majority offered a very high level of support: 80% of residential customers gave an 8 or more out of 10, 77% non-residential and 71% of stakeholders. The same question was asked in the online survey, with a similar 65% of customers strongly supporting restrictions (at 8 or more out of 10) and 85% at least somewhat (net 6+), while just 6% were at least somewhat opposed see Figure 2 below. To tease out preferences, survey participants were asked if they thought the restrictions should be voluntary or enforced with fines. Further illustrating the wide support for restrictions, the large majority indicated that the latter would be better, at 70%, and only 22% thought they should be voluntary guidelines only refer Figure 2. The main reasons for supporting restrictions were that they were thought to have been effective in saving water, guiding consumers about what to do, and providing a needed form of discipline. The main reasons for opposing restrictions were related to the severest of the most recent restrictions. Impacts included financial and social costs of having to lose, replace and change plants and gardens, the social impacts associated with the loss of sporting fields, and the inconveniences and physical challenges for elderly people e.g. with watering times and shower bucketing behaviour. Stakeholders were acutely aware of the negative impacts. In some of the qualitative research sessions, information was provided about the limited impact future water restrictions are expected to have, i.e. because many of the gains in behaviours are thought to have already been made. This was quite powerful information because these participants tended to then more seriously consider other options over restrictions. The research also revealed that customers had limited understanding of the social and financial costs of alternative water supplies and there was an appetite for more information. This means information about the potential impacts from the various actions needs to be presented to people in order to help shape understanding and build support for potentially costlier approaches. In both the qualitative and quantitative research, preferences were explored around whether restrictions should be applied to public uses, private uses or both. The strongest preference among community participants was for restrictions on both public and private outdoor uses refer to Figure 3 below. At the next level down, the most popular option was the use of no restrictions and instead developing alternative water sources to boost supplies. More use of recycled water and stormwater recycling, but drinking water to still come from the mains supply To distil relative water source values, online survey participants were asked which sources they thought would be acceptable for different uses during times of shortages. Water for drinking purposes was mostly expected to come from the mains supply (95% felt this way). In total, 18% supported other sources, including 10% nominating recycled water. At least half of all respondents supported the use of recycled sewage for fighting fires (as high as 79%), toilet flushing, industrial uses, farming, watering public gardens and sporting fields, and river health. Sentiment was similar for other sources such as grey and tank water as for recycled water, though these sources were even more acceptable for home garden watering. Figure 3: : Restrictions versus other options "ITS A PRECIOUS COMMODITY DON'T RESTRICT HOSPITALS AND WOMEN'S SHELTERS WITH INFANTS OR NURSING HOMES WITH ELDERLY. USE IT FOR THE MOST VULNERABLE IN OUR COMMUNITIES" Support = 60% PREFERRED APPROACH: RESTRICTIONS VS OTHER OPTIONS 45% - Restrictions on both public and private outdoor water u 10% - Restrictions on public outdoor use but not private 6% - Restrictions on private outdoor use but not public 13% - Option to voluntarily reduce water use instead of restrictions 26% - No restrictions, with reduce water use instead developed to boost supplies All residential quantitative participants (n=745) Q18: Which one of the following options would you prefer most in times of water shortages? YARRA VALLEY WATER URBAN WATER STRATEGY

134 APPENDIX 4: CURRENT DEMANDS INTRODUCTION Yarra Valley Water s demand comprises residential, nonresidential and non-revenue water uses refer to Figure 1. Residential use comprises nearly 70% of our total water use. Non-residential water use (19%) includes water used by large and small businesses, schools, universities, hospitals, parks and sportsgrounds. Non-revenue water (12%) is water that is not billed to customers and includes loss of water through water main bursts and leaks, water used for firefighting and theft of water. Our total water use remains lower than consumption levels in the early 2000's, as shown in Figure 2. On a per-person basis, total water use by Yarra Valley Water s customers has declined from 358 litres per person per day in to 242 litres per person per day in a reduction of 32% (Figure 3). The trend has been influenced by increases in population but is offset by use of more water efficient appliances and behaviours and investment in alternative water projects. Figure 1: Yarra Valley Water s water use by segment Non-revenue water 12% Non-residential 19% Residential 69% Figure 2: Yarra Valley Water s total water use (in megalitres) 250, , ,000 ml 100,000 50,000 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 00/01 Water restrictions Water restrictions Permanent Water use Rules 134 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

135 Figure 3: Yarra Valley Water s total water use per capita (in litres per person per day) Litres /01 01/01 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Permanent Water Use Rules were introduced on 1 December 2012, when restrictions were lifted to help manage our water efficiently and satisfy community concerns about continuing water waste. These rules require the community to use common sense as part of their everyday use of water. The rules do not apply to the use of recycled, reclaimed, rain or greywater, except where it is supplemented in any way by drinking water. Examples of the rules are: you can water residential or commercial gardens and lawns at any time, on any day, using a hand held hose fitted with a trigger nozzle. However, you can water gardens and lawns using a watering system (manual, automatic, spray or dripper) only between 6pm and 10am, any day of the week. you cannot hose down hard surfaces including driveways, paths, concrete, tiles, timber decking and other paved areas except where cleaning is required, or if there is an accident, fire, health hazard, safety hazard or other emergency. However, you can use a high-pressure cleaning unit, or if such a unit is not available, a hose fitted with a trigger nozzle, or a bucket to remove stains from hard surfaces once a season (every three months) you can apply for exemptions from the Permanent Water Use Rules, for example, where you have a medical condition or disability, tend a public or private garden that has significant botanic, environmental or historic qualities is considered a Garden of Significance, or are installing a new lawn. YARRA VALLEY WATER URBAN WATER STRATEGY

136 RESIDENTIAL Household use has dropped by 32% from to In , hot dry conditions persisted throughout most of the year and water use rose slightly (4%) from the previous year (Figure 4). Figure 4: Residential water use (litres per person per day) litres /01 01/01 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 The main uses of water by households are shown in Figure 5 with shower use making up 31% of total water use. Outdoor irrigation use comprises 11% of total household water use and restrictions are targeted at reducing or eliminating outdoor use. Our customers have demonstrated a strong commitment to the efficient use of water over recent years. Water efficiency programs such as Target 155 continue to encourage these water-wise habits. Figure 5: Residential water uses Showers 31% Other end uses 8% Landscapes Baths 11% 5% 2015 / 16 Toilet 15% Clothes washer 15% Taps 15% 136 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

137 NON-RESIDENTIAL Non-residential water use accounts for 19% of our total water use. Similar to households, our non-residential water use has declined by 25% since refer Figure 6. In , our non-residential water use rose by 5.6% to 29.3 megalitres due to the hot dry conditions. Figure 6: Non-residential water use by year (megalitres) YARRA VALLEY WATER NON-RESIDENTIAL WATER USE 45,000 40,000 25,000 30,000 ml 25,000 20,000 15,000 10,000 5, / / / / / / / / / / / / / / / /16 NON-REVENUE WATER Non-revenue water currently accounts for 12% of our water use and has seen a decline of 26% since as shown in Figure 7 below. This has been due to a comprehensive program including proactive leak detection and repair and pressure management program. In , non-revenue use rose slightly due to losses from increased leakage and water main bursts associated with the hot dry conditions. Figure 7: Non-revenue water by year (megalitres) YARRA VALLEY WATER NON-REVENUE WATER VOLUME 30,000 25,000 20,000 ml 15,000 10,000 5, / / / / / / / / / / / / / / / /16 YARRA VALLEY WATER URBAN WATER STRATEGY

138 APPENDIX 5: SEWERAGE PLANNING SEWER PLANNING Yarra Valley Water manages small reticulation and branch sewers within our service area, some of which are more than 100 years old. The primary drivers for sewer asset management include: renewing ageing assets before they fail minimising customer and environmental impact of dry weather sewer blockages and associated spills increasing the hydraulic capacity of sewers to contain flows associated with wet weather events in line with the State Environmental Protection Policy Waters of Victoria (SEPP WoV) upgrading sewers to cater for the future growth of Melbourne, acknowledging a significant amount of future growth in the established areas of Melbourne. Through the use of innovative sewer monitoring and inspection equipment, we are seeking to establish an ongoing proactive sewer-cleaning program to reduce the number of dry weather sewer spills resulting in a high impact to customers. This will operate in conjunction with our ongoing proactive sewer inspection and renewal program to ensure intergenerational equity when renewing ageing assets. Yarra Valley Water and Melbourne Water have made significant inroads in wet weather flow containment since the SEPP WoV was introduced. Many relieving sewers have added additional capacity to account for wet weather flows and future growth, none bigger than the Northern Sewerage Project, completed in While past projects have significantly reduced sewage spill frequencies and volumes, we still have a $290M wet weather containment upgrade program. These projects are also sized to cater for future growth, but the majority are local branch sewers where spill volumes are relatively low. The ability to construct sewers is limited and therefore expensive. unattainable in dry weather given the amount of background pollutants in the waterway, but upgrading the sewers would have little or no measurable impact to the outcomes identified for the waterway. Almost all of the pollutants impacting the waterway values originated from stormwater. There are a number of alternative projects we will undertake to enhance the environment and customer liveability outcomes. These were identified using a holistic focus across all our catchments, based on the risks to public health, environment and amenity outcomes. These are: ensuring all wet weather overflows are diverted to waterways rather than uncontrolled spills that impact our customers installation of screens at our overflow points to reduce the aesthetic impacts of a sewer spill identification and rectification of illegal sewer-tostormwater connections continued focus on cost effectively identifying and rectifying inflow and infiltration to our sewers stormwater-to-sewer diversions to reduce pollutant loads in key areas to waterways ongoing waterway monitoring and risk assessment of our discharges to waterways including an adaptive approach that addresses key risks to waterway outcomes. This approach allows a continued focus on reducing key threats to environmental and community values and the adaptive approach enables sewers to be upgraded to contain wet weather events when they pose a key risk to the waterway outcomes identified, which is envisaged to occur sometime in the future. This has prompted Yarra Valley Water and others in the water industry to consider a risk-based approach to managing wet weather overflows. A pilot study of the Merri Creek determined that not only was primary and secondary contact 138 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

139 SEWAGE TREATMENT PLANT PLANNING We manage 10 local sewage treatment plants that collectively treat 8% of our network s sewage flows. The remaining 92% is transferred to Melbourne Water for treatment at the western or eastern treatment plants. We own and operate local treatment plants in areas that are otherwise difficult to connect to the metropolitan sewerage network, usually because of distance, geographical constraints or the history of the city s development. As Melbourne grows, we will continue to review the lowest community cost options for providing sanitation services to these communities. An investigation into the possible consolidation of the sewage catchments of the existing Brushy Creek and Lilydale sewage treatment plants, with treatment to occur at a new plant at the Lilydale site, demonstrates a planning approach that can unlock lowest community cost outcomes. They include exploiting an economy of scale, making available land for sale at the Brushy Creek site, and the potential to generate renewable energy and other resource recovery at the new facility at Lilydale. Local treatment plants contain many components (assets), which have differing lifespans for repair or replacement. There is no way to clearly define the whole-of-life span of a treatment plant due to the wide range of components. As assets are renewed, we seek to act according to our core values of financial, environmental and social responsibility. As technology develops over time, the options available to improve the function of our local treatment plants with asset renewal become broader. It is expected that over the next 50 years will see great advances in the availability of technology that can harness the full potential of the incoming source of sewage as a resource. The shift from a treatment plant to a resource recovery plant is largely dependent on technology and the existence of markets for recovered products. We actively participate in the advancement of technology by conducting trials and monitoring industry developments. The potential for resource recovery is a key consideration in long-term options for the lowest community cost provision of sanitation in the areas serviced by our local treatment plants. The local treatment plants discharge treated effluent to irrigation schemes or local waterways. We have a target to maximise the re-use of treated effluent and manage our discharges to waterways in accordance with the relevant legislation and regulations. This is further supported by our strategic environmental commitments to restore the environment more than our operations impact it. Maximising the re-use of treated effluent includes the pursuit of integrated water management, in particular through the provision of third pipe recycled water to the growth areas in our service area. The waterways that we discharge into are also impacted by stormwater and other secondary sources. YARRA VALLEY WATER URBAN WATER STRATEGY

140 APPENDIX 6: STATUS AND ACTIONS AT EXISTING AND PLANNED LOCAL SEWAGE TREATMENT PLANTS Table 1 provides an assessment of existing and planned local treatment plants and an indication of proposed actions for each. Based on current projections, more than $500 million will be invested in key collection and transfer infrastructure by Yarra Valley Water to Design Capacity and Current Flow, Load and Effluent Reuse Performance Design 2015/16* AURORA SEWAGE TREATMENT PLANT Flow 3.5 ML/d 3.3 ML/d Load 945 kg BOD/d 1088 kg BOD/d Reuse Effluent Produced 1226 ML Effluent Recycled 640 ML (52.2%) Commentary Significant forecast residential growth and Class A recycled water demand. Approaching plant and Class A recycled water capacity. Opportunity for: Conversion to sewer mine (operated only to meet recycled water demands) Increased effluent recycling with Class A expansion 100% of plant energy demands supplied with green energy from YVW Aurora waste-to-energy plant Proposed Actions Staged capacity upgrades in line with growth in development Epping sewerage link to divert excess dry and wet weather flows from plant in 2017 Epping tunnel to meet Hume Corridor sewerage growth and allow Aurora STP to operate as a sewer mine in 2020 Capacity augmentation to meet future Class A recycled water demand in 2027 BRUSHY CREEK SEWAGE TREATMENT PLANT Flow 13.0 ML/d 11.0 ML/d Load 3600 kg BOD/d 3671 kg BOD/d Reuse Effluent Produced 4755 ML Effluent Recycled 645 ML (13.6%) Minimal forecast growth means capacity to treat flow not an issue in foreseeable future. However, ageing asset operating close to organic capacity requiring significant investment in near term. Opportunity for: Rationalisation with Lilydale STP for economy of scale and opportunities for increased effluent recycling, enhanced bio solids management and 100% renewable energy supply Move to risk-based waterway health assessment and enhancements Assess options for Brushy Creek and Lilydale STPs by end June YARRA VALLEY WATER URBAN WATER STRATEGY 2017

141 Design Capacity and Current Flow, Load and Effluent Reuse Performance Design 2015/16* Commentary Proposed Actions CRAIGIEBURN SEWAGE TREATMENT PLANT Flow 2.9 ML/d 2.1 ML/d Load 1150 kg BOD/d 1206 kg BOD/d Reuse Effluent Produced 1200 ML Effluent Recycled 691 ML (57.6%) The plant operates as a sewer mine to extend capacity of the sewerage system, deferring community cost of sewer upgrades while meeting local recycled water demand and supporting endangered Growling Grass Frog habitat in Merri Creek. Ageing asset recently refurbished and upgraded with enhanced aeration and control. Opportunity for: Continued operation to supply flow to Merri Creek to support Growling Grass Frog habitat Defer community costs with sewer and recycled water augmentation by extending operational life of STP Risk-based waterway health assessment and enhancements Future of plant to be determined in line with Hume corridor growth rates and servicing strategy HEALESVILLE SEWAGE TREATMENT PLANT Flow 2.2 ML/d 1.3 ML/d Load 720 kg BOD/d 413 kg BOD/d Reuse Effluent Produced 407 ML Effluent Recycled 73 ML (18.0%) Sufficient capacity to treat in medium to long term future. Opportunity for: Increased effluent recycling Move to risk-based waterway health assessment and enhancements Assess risk to waterway and opportunities for increased effluent recycling YARRA VALLEY WATER URBAN WATER STRATEGY

142 Design Capacity and Current Flow, Load and Effluent Reuse Performance Design 2015/16* KINGLAKE SEWAGE TREATMENT PLANT Flow ML/d ML/d Load 1.4 kg BOD/d 4.6 kg BOD/d Reuse Effluent Produced 10.4 ML Effluent Recycled 0 ML (0%) Commentary Forecast growth will result in need for minor upgrade. Approaching flow and load capacity. Scheme for 100% onsite reuse currently in commissioning. Proposed Actions Augment capacity as required LILYDALE SEWAGE TREATMENT PLANT Flow 10.0 ML/d 6.8 ML/d Load 4000 kg BOD/d 2375 kg BOD/d Reuse Effluent Produced 3300 ML Effluent Recycled 888 ML (26.9%) Sufficient capacity to treat flows and loads in foreseeable future. Wet weather flow management upgrades underway. Significant recycled water customers identified. Opportunity for: Rationalisation with Brushy Creek STP for economy of scale Increased effluent recycling Enhanced bio solids management Waste-to-energy Community liveability benefits Move to risk-based waterway health assessment and enhancements Assess options for Brushy Creek and Lilydale STPs by end June 2018 Continue liaison with customers about future recycled water schemes 142 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

143 Design Capacity and Current Flow, Load and Effluent Reuse Performance Design 2015/16* MONBULK SEWAGE TREATMENT PLANT Flow 0.18 ML/d 0.07 ML/d Load 26 kg BOD/d 23 kg BOD/d Reuse Effluent Produced 24 ML Effluent Recycled 0 ML (0.0%) Commentary Ageing asset requiring significant investment in near term. Insufficient capacity to meet new community sewerage scheme flows into future. Opportunity for: Significant roll out of community sewerage servicing Significant reduction in septic tank impacts on the environment Restorative outcomes for Sassafras Creek by removing treatment plant discharge Proposed Actions Decommission Monbulk STP in 2021 (Community sewerage servicing options assessment identified pressure sewers and decommissioning of Monbulk STP in 2021 as the preferred outcome for the community and the environment) UPPER YARRA SEWAGE TREATMENT PLANT Flow 3.0 ML/d 2.2 ML/d Load 750 kg BOD/d 636 kg BOD/d Reuse Effluent Produced 878 ML Effluent Recycled 129 ML (15.3%) Sufficient capacity to treat flows and loads in foreseeable future Opportunity for: Increased effluent recycling Move to risk based waterway health assessment and enhancements Establishing site as a wildlife sanctuary for the endangered Helmeted Honey Eater and other native species As per opportunities YARRA VALLEY WATER URBAN WATER STRATEGY

144 Design Capacity and Current Flow, Load and Effluent Reuse Performance Design 2015/16* WALLAN SEWAGE TREATMENT PLANT Flow 4.0 ML/d 2.2 ML/d Load 1275 kg BOD/d 961 kg BOD/d Reuse Effluent Produced 818 ML Effluent Recycled 728 ML (89.0%) Commentary New activated sludge plant built in 2016 (replaced lagoon treatment) to manage growth into foreseeable future. Lagoons retained as storage facilities Significant residential growth and Class A recycled water demand forecast. Opportunity for: Future conversion to sewer mine (operated to meet recycled water demands) Increased effluent recycling requiring Class A augmentation Proposed Actions Lockerbie main sewer extension to Wallan to enable plant to operate as a sewer mine from 2021 onwards Capacity augmentation to meet future Class A recycled water demand as required Environmental risk-based discharge licence for wet months to avoid increased community cost WHITTLESEA SEWAGE TREATMENT PLANT Flow 1.5 ML/d 0.84 ML/d Load 827 kg BOD/d 287 kg BOD/d Reuse Effluent Produced 298 ML Effluent Recycled 110 ML (37.1%) Sufficient capacity to treat flows and loads in foreseeable future Limited recycled water lagoon storage capacity. Opportunity for: Increased effluent recycling Investigation of long term approach to containment of flows including possible risk-based environmental discharge. Investigation of increased effluent recycling and environmental risk-based discharge * Flow, median load and reuse data from sampling and monitoring program. 144 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

145 GLOSSARY Allocation Aboriginal Victorians Augmentation Bulk entitlement Catchment Climate change Community Consumption Country Desalination Environmental water Fit-for-purpose Gigalitre (GL) Green and blue infrastructure Groundwater Inflows Integrated water management Liveability Megalitre (ML) Water that is actually available to use or trade in any given year, including new allocations and carryover. The water that is actually in the dam in any given year is allocated against bulk entitlements or water shares. The seasonal allocation is the percentage of bulk entitlements or water share volume available under current resource conditions, as determined by the resource manager. An Aboriginal Victorian is a person of Aboriginal descent who identifies as an Aboriginal and is accepted as such by the Victorian Aboriginal community in which he or she lives. Increase in size and/or number, for example of assets in a water supply system. The right to water held by water corporations and specified entities defined in the Water Act The bulk entitlement defines the amount of water that an authority is entitled to from a river, water storage or aquifer, and may include the rate at which it may be taken and the reliability of the entitlement. An area where water falling as rain is collected by the landscape, eventually flowing to a body of water such as a creek, river, dam, lake, ocean, or into a groundwater system. A change in global or regional climate patterns. Includes individuals, public and private landholders, community groups and business owners. Water that is provided for all human uses, that is non-environmental water. Aboriginal culture revolves around relationships to the land and water. For Traditional Owners, Country is a part of who they are, just as they are a part of it. Removing salt from water sources, often for drinking purposes. Water to support environmental values and ecological processes. Water of a quality that is appropriate for its intended use. One billion (1,000,000,000) litres. Green infrastructure refers to key vegetation features such as street trees, parklands, grassed sports fields and vegetated walls. Blue infrastructure refers to key waterways, wetlands, recreational lakes, stormwater retarding basins, or other water body features. Green-blue infrastructure brings these assets together through integrated approaches to deliver community benefits. All subsurface water, generally occupying the pores and crevices of rock and soil. Water flowing into a storage or waterway. A collaborative approach to planning that brings together all elements of the water cycle including sewage management, water supply, stormwater management and water treatment, considering environmental, economic and social benefits. A measure of a city's residents quality of life, used to benchmark cities around the world. It includes socioeconomic, environmental, transport and recreational measures. One million (1,000,000) litres. YARRA VALLEY WATER URBAN WATER STRATEGY

146 Millennium Drought The drought in Victoria spanning from 1997 to Non-residential water use Non-revenue water Potable Rainwater Recycled water Reservoir Residential water use Sewage Sewerage Statement of Obligations Stormwater Surface water Sustainable water strategies Traditional Owners Urban water cycle Urban water strategies Victorian Desalination Project Victorian Environmental Water Holder Wastewater Water entitlement Water market Water quality Water-related urban amenity Water used in industry, commercial/institutional buildings, and open spaces such as parks and gardens. Water not billed because it is lost through operational losses such as leaks, used for fire-fighting or stolen Water of suitable quality for drinking. Water that has fallen as rain or has been collected from rainfall. Water derived from sewerage systems or industry processes that is treated to a standard appropriate for its intended use. Natural or artificial dam or lake used for the storage and regulation of water. Water used by households including in-house uses as well as outdoor uses (for gardens, swimming pools and car washing). Wastewater produced from households and industry. The infrastructure that collect, remove, treat and dispose of liquid urban waste. Statements made under Section 41 of the Water Industry Act 1994 that specify the obligations of Victoria s water corporations in relation to the performance of their functions and the exercise of their powers. Runoff from urban areas. The net increase in runoff from urban development due to water not being able to seep into the ground because of impervious surfaces, such as roofs and roads. Water on the surface of the planet, including streams, rivers, lakes, wetlands and oceans. Regional long-term planning documents legislated under the Water Act 1989, to address threats to, and identify opportunities to improve water availability and river health outcomes. People who, through membership of a descent group or clan, are responsible for caring for Country. Aboriginal people with knowledge about traditions, observances, customs or beliefs associated with a particular area. A Traditional Owner is authorised to speak for Country and its heritage. The cycle of water through urban environments. Distinguished from the natural urban water cycle by the transfer of water through built infrastructure and the high runoff rates generated by impervious surfaces. All urban water corporations in Victoria are required to develop these strategies, which detail how water supplies and water demands will be balanced over the long-term. These are the next iteration of Water Supply Demand Strategies first prepared in The formal name of the Wonthaggi desalination plant and associated infrastructure made up of the plant, underground pipeline and dedicated power supply. An independent statutory body responsible for holding and managing Victoria s environmental water entitlements. Water that has had its quality affected by human influence, deriving from industrial, domestic, agricultural or commercial activities. A right to receive water allocations, depending on resource availability. Includes bulk entitlements and unbundled water entitlement known as a water shares. Market in which the trade of permanent and temporary water is allowed under certain conditions. Refers to the chemical, physical, biological, and radiological characteristics of water. It is a measure of the condition of water relative to the requirements of one or more biotic species and or to any human need or purpose. A measure of a city's resident's quality of life (i.e. liveability) generally related to waterrelated green and blue infrastructure. 146 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

147 Water sensitive city Water sensitive urban design Water storages Water systems Waterways Wetlands Resilient, liveable, productive and sustainable cities that interact with the urban hydrological cycle to provide water availability, healthy watercourses and wetlands, mitigate flood risk, create healthy spaces and contribute to biodiversity, urban heat island reduction and carbon sequestration. Integrating the urban water cycle into urban design to minimise environmental damage and improve recreational and aesthetic outcomes. A hydrological feature in which water is stored. Surface water storages include natural and artificial ponds, lakes, reservoirs and lagoons, and also the bodies of water held behind weirs and dams. All sources of water supply including centralised and decentralised sources and structural or non-structural options, including planning, regulatory or pricing measures. Rivers and streams, their associated estuaries and floodplains (including floodplain wetlands) and non-riverine wetlands. Wetlands are areas, whether natural, modified or artificial, subject to permanent or temporary inundation, that hold static or very slow moving water and develop, or have the potential to develop, biota adapted to inundation and the aquatic environment. Wetlands may be fresh or saline. YARRA VALLEY WATER URBAN WATER STRATEGY

148 REFERENCES Australian Bureau of Meteorology website Victorian rainfall anomaly from 1900 at (accessed 21 March 2017) Australian Bureau of Statistics, ABS Dataset: Population Projections by Region, CRC for Water Sensitive Cities, 2016, Water Sensitive Cities Benchmarking and Assessment: Greater Melbourne Region CSIRO and Bureau of Meteorology, 2015, Climate change in Australia. Information for Australia s natural resource management regions: Technical report, CSIRO and Bureau of Meteorology, Australia Gergis, J, Gallant AJE, Braganza, K, Karoly, D, Allen, K, Cullen, L, D Arrigo, R, Goodwin, I, Grierson, P, McGregor, S, 2012, On the long-term context of the Big Dry in South- Eastern Australia: insights from a 206-year multi-proxy rainfall reconstruction, Climatic Change 111: DOI /s x Intergovernmental Panel on Climate Change (IPCC), 2014, Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R.K. Pachauri and L.A. Meyer (eds.)]. IPCC, Geneva, Switzerland Melbourne Water, 2017, Melbourne Water System Strategy Newgate Research, 2016, Melbourne s Urban Water Strategies Cusomer and Stakeholder Research Report, October (report for City West Water, Melbourne Water, South East Water and Yarra Valley Water) Rockefeller Foundation and City of Melbourne, 2016, Resilient Melbourne Strategy Timbal, B., Ekström, M., Fiddes, S., Grose M., Kirono, D., Lim, E., Lucas, C., and Wilson, L., 2016, Climate change science and Victoria, Victoria Climate Initiative (VicCI) report, Bureau of Meteorology, Australia, May, Bureau Research Report, 14 United Nations Framework Convention on Climate Change, Paris Agreement UNFCCC < unfccc.int/files/meetings/paris_nov_2015/application/pdf/paris_agreement_english_.pdf Victorian Government Department of Environment, Land, Water and Planning, 2016, Guidelines for assessing the impact of climate change on water supplies in Victoria Victorian Government Department of Environment, Land, Water and Planning, 2015, Plan Melbourne Refresh Discussion Paper, October Victorian Government Department of Environment, Land, Water and Planning, 2016, Victoria in the Future 2015: Population and household projections to 2051 Victorian Government Department of Environment, Land, Water and Planning, 2016, Water for Victoria: Water Plan, October Water Services Association of Australia (WSAA), 2016, Climate Change Adaptation Guidelines. Project Report WSA v1.2. February WSAA. World Meteorological Organisation, 2016, WMO Statement on the Status of Global Climate in World Meteorological Organisation. 148 YARRA VALLEY WATER URBAN WATER STRATEGY 2017

149 DROUGHT PREPAREDNESS PLAN FOR YARRA VALLEY WATER CORPORATION 1 APRIL 2017 A. DROUGHT PREPAREDNESS page 2 B. YARRA VALLEY WATER S ADAPTIVE MANAGEMENT FRAMEWORK page 3 C. DROUGHT RESPONSE PLAN page 6 D. COLLABORATIVE WORKING RELATIONSHIPS page 7 E. VARIATIONS AND REVIEW OF THIS PLAN page 8 SCHEDULE 1 OPERATING PROVISIONS DROUGHT RESPONSE PLAN page 9 SCHEDULE 2 CORE PROCESS FOR DEVELOPING WATER OUTLOOK page 15 DROUGHT PREPAREDNESS PLAN FOR YARRA VALLEY WATER CORPORATION 1 APRIL 2017 Page 1 of 15

150 A. DROUGHT PREPAREDNESS City West Water Corporation, South East Water Corporation and Yarra Valley Water Corporation (the Metropolitan Corporations) are established under the Water Act 1989 to provide water and sewerage services throughout metropolitan Melbourne. Under their Statement of Obligations, each Corporation must prepare a Drought Response Plan and in accordance with the guidelines issued by the Minister for Yarra Valley Water s Urban Water Strategy, the Drought Response Plan must form part of a Drought Preparedness Plan, also required to be developed in accordance with the Minister s guidelines. The broad purpose of a Drought Preparedness Plan is to ensure that the Metropolitan Water Corporations and Melbourne Water jointly develop their preparedness strategies to meet the agreed levels of service (Water Supply Objective) through an adaptive management framework. This framework comprises a number of inter-related long and short term processes; ensures that the community is informed and prepared about impending water shortage periods and Yarra Valley Water has a timely and effective short-term response to the occurrence of water shortage, with the aim of minimising the impacts (social, economic, and environmental) of such shortages. In order to ensure our customers and stakeholders are prepared for periods of shortage, the Metropolitan Corporations will work with Melbourne Water, and will, collaboratively and individually, work with passive and active open space managers, owners of significant gardens and related key stakeholders to: ensure there is a shared understanding of the reliability of the system; ensure there is a shared understanding of where critical assets are and the need to ensure their resilience; assess local solutions, including the use of drought tolerant species and emergency water arrangements; assess climate independent supply options for longer term resilience; and consider short term management responses, including the preparation of an approved water use plans and exemptions from restrictions, in periods of critical need. This Drought Preparedness Plan, incorporating the Drought Response Plan for the purpose of Yarra Valley Water s Water Restriction By-law 001/2012, is an important mechanism to assist in the adaptive management of Melbourne s water resources in times of shortage and may include regulating the use of water via a By-law for water restrictions. Water shortage is a natural occurrence of climate dependant water supplies that service a city. Investments in climate independent sources, like the Victorian Desalination Project, and the investment in alternative, fit for purpose water sources go a long way to mitigate future dry scenarios. That said, shortage may still occur from time to time and the Metropolitan Corporations, Melbourne Water, customers and stakeholders need to be prepared. In order to enhance Melbourne s preparedness, this Drought Preparedness Plan is predicated on the following key components: the preparedness of Yarra Valley Water to optimise and manage its water portfolio to mitigate future uncertainty; the capacity and ability of Yarra Valley Water to promptly react to drought or water shortage events; the preparedness of our customers, if such an event occurred, to manage their open spaces, gardens and other critical assets; and a shared commitment to ensuring critical community assets remain sustainable and viable. Page 2 of 15 DROUGHT PREPAREDNESS PLAN FOR YARRA VALLEY WATER CORPORATION 1 APRIL 2017

151 B. YARRA VALLEY WATER S ADAPTIVE MANAGEMENT FRAMEWORK Yarra Valley Water s approach to ensure its preparedness to meet the agreed levels of service, is undertaken through an adaptive management framework comprising a number of inter-related long and short term processes including; 1. The development of a 50-year Urban Water Strategy every five years (first one released 31 March 2017); 2. Support Melbourne Water s development of a Melbourne Water System Strategy (first one released 31 March 2017); 3. The joint publication of an annual Water Outlook by 1 December each year which will include action plans for managing the water portfolio for the forthcoming year and the next three years; 4. Optimising the use of the Victorian Desalination Project to meet customer needs; 5. The preparation of an Annual Operating Plan by Melbourne Water; 6. Ongoing stakeholder engagement, with a particular focus on creating preparedness and resilience for public open space managers and owners of other significant community assets to deal with uncertainty and extreme events; 7. A commitment to supplying critical human needs at all times; 8. The continued reinforcement of permanent water saving rules, commitment to the government s Target 155 program and the delivery of ongoing water efficiency programs; 9. If required, implement a restrictions regime, as per a published water restrictions By-law; and 10. Publish general guidelines for exemptions from Permanent Water Rules and or restrictions imposed under the water restrictions By-law. Schematically these processes can be represented below: DROUGHT PREPAREDNESS PLAN FOR YARRA VALLEY WATER CORPORATION 1 APRIL 2017 Page 3 of 15