LIVING VICTORIA: WATER POLICY INITIATIVE

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1 LIVING VICTORIA: WATER POLICY INITIATIVE Nick Rintoul, Office of Living Victoria Melbourne is faced with rising water bills, poor waterway and bay health, and threats to urban liveability. These problems exist in the context of population growth, climate uncertainty and a decentralised and competitive water industry. In response to these challenges, the Victorian Government s Living Victoria water policy initiative (or Living Victoria program) sets a new direction for urban water management and planning in Victoria. The Living Victoria program is based on the recommendations of the Living Victoria Ministerial Advisory Council, which were published in the Living Melbourne, Living Victoria Implementation Plan. This paper highlights the importance of integrated water cycle management, outlines the actions the Office of Living Victoria will undertake, and provides an overview of how the Living Victoria program will affect the broader water industry. Melbourne is faced with rising water bills, poor waterway and bay health, and threats to urban liveability. The reasons for this are identified below. Urban water management has historically relied on a centralised approach to providing water and wastewater services and on draining stormwater to waterways and bays as quickly as possible to reduce the risk of flooding. The costs associated with augmenting our drinking water supplies and water infrastructure in Melbourne s central business district (CBD) and established suburbs means this approach is no longer sustainable. We also know that waterways that are directly connected (by drainage infrastructure) to the catchment have poor health: directly connected imperviousness is the best indicator of instream waterway health. Not surprisingly, the extension of existing water supply and wastewater infrastructure to some growth area communities is very expensive. This is concerning because costly water servicing solutions (to the CBD, established areas and growth areas) put pressure on water bills to rise. Added to this, there is great uncertainty as to when potable water supplies and water infrastructure might need to be augmented. For example, modelling carried for the Living Victoria Ministerial Advisory Council (2011) identified a range of future scenarios for Melbourne based on a variety of uncertainties, including different rates of population growth and different climatic conditions. One scenario suggests Melbourne may need to begin to plan for another major water supply augmentation over the next 10 years (Living 1

2 Victoria Ministerial Advisory Council 2011). At the other extreme, Melbourne could have an oversupply of drinking water derived from traditional sources beyond Despite Melbourne being recognised as the world s most liveable city by the Economist Intelligence Unit, we know that our urban liveability is threatened by water-deprived open spaces and gardens, poor waterway and bay health and the urban heat island effect (the phenomena which results in an urban area being much warmer than the surrounding rural areas). Water therefore makes an important contribution to liveability. In addition to the above, the structure of water industry helps to explain the current situation. The structure of the water industry in Melbourne is fairly decentralised. During the 1990s the Melbourne and Metropolitan Board of Works was disaggregated into Melbourne Water and three retailers to increase efficiency and productivity. Although the retailers each enjoy a spatial monopoly, they still compete with one another (by comparison rather than by competing for customers). The problem with decentralised and competitive businesses is that it is difficult for them to collaborate. Where is the incentive for one business to spend money on a solution for which it receives no revenue? Rising water bills, poor waterway and bay health and threats to urban liveability need to be understood in the context of population growth, climate uncertainty, and a decentralised and competitive water industry. The Victorian Government s Living Victoria water policy initiative (or Living Victoria program) responds to these challenges by setting a new direction for urban water management and planning in Victoria. The Living Victoria program is based on the Living Victoria Ministerial Advisory Council s recommendations, which are set out in the Living Melbourne, Living Victoria Implementation Plan (Living Victoria Ministerial Advisory Council 2011). The government supports the vision recommended by the Living Victoria Ministerial Advisory Council: a smart resilient water system for a liveable, sustainable and productive Melbourne. This paper has three purposes: 1. To highlight the importance of integrated water cycle management. 2. To outline the actions the Office of Living Victoria will undertake. 3. To provide a brief overview of how the Living Victoria program will affect the broader water industry. The importance of integrated water cycle management The key to a smart resilient water system is integrated water cycle management. By adopting a holistic view of the urban water cycle, integrated water cycle management maximises the social, environmental and economic value derived from water resources and looks to localised approaches for harvesting and managing stormwater. 2

3 Integrated water cycle management will enable Melbourne to Do more with water. Liveable and sustainable communities will be supported The environmental health of urban waterways and bays will be protected Secure water supplies will be provided efficiently Public health will be protected The delivery of essential water services will be affordable Actions the Office of Living Victoria will undertake The Office of Living Victoria (OLV) has been created to drive the transformational change to a smart resilient water system. Operating in Melbourne and Victoria s regional centres, OLV will perform its role by promoting integrated water cycle management and by bringing together land-use and water planning like never before. Land-use and water planning will be integrated at different spatial and temporal scales. This means working at the metropolitan, regional, corridor, precinct structure plan, lot, and building scales and ensuring that approvals given at different stages in the development process speak to each other. At the time of writing, OLV is consulting key stakeholders on its draft strategic plan. OLV proposes to drive transformational change by focusing on: strategies on-ground projects information gathering and sharing, and standards and regulations building knowledge and capacity. Depending on stakeholder feedback and the finalisation of OLV s terms of reference, these focus areas could change. More information about each focus area is provided below. Strategies Transforming the water planning framework is a key priority for OLV, particularly at the metropolitan scale, for Melbourne s four growth areas, and for inner Melbourne. This new water planning framework will drive greater integration of urban water services and deliver better outcomes for the community. 3

4 The new water planning framework might look like this: A Metropolitan Integrated Water Cycle Strategy Regional Integrated Water Cycle Strategies Precinct planning Local planning On-ground projects On-ground projects that adopt integrated water cycle management will establish Melbourne as an international leader, demonstrate what is possible, de-risk new practices for broader application, and accelerate the adoption of integrated water cycle management elsewhere in Victoria. These projects will occur in inner urban renewal areas (potentially Southbank or Fisherman s Bend), established areas, and urban growth areas. Information gathering and sharing OLV will develop and disseminate tools, systems and processes to support better and informed decisions. This is likely to include an integrated water modelling toolkit, an integrated water cycle management atlas (that will make public, information about investment opportunities for integrated water cycle management) and the stewardship of water investment reform. Standards and regulations OLV will examine the role that regulation and voluntary standards could have in expediting the conversion to integrated water cycle management at the building, lot and precinct scales. Building knowledge and capacity OLV will create a new model for investment in integrated water cycle management knowledge and capability. This is likely to include: targeted, strategic investment in integrated water cycle management projects building greater understanding of the extent to which integrated water cycle management is applied delivering targeted initiatives to address research, knowledge and capability gaps sharing information, building skills, knowledge and expertise recognising and showcasing learning and leadership in applied best practice strengthening local, national and international networks across Victoria s planning and water industry professionals. 4

5 How the Living Victoria program will affect the broader water industry The final part of this paper provides a brief overview of how the Living Victoria program will affect the broader water industry (which includes the provision of drainage services, the application of water sensitive urban design, and the application of the urban run-off management objectives in the Victoria Planning Provisions by local government). It is clear that the Living Victoria program will have a significant impact on water industry professionals, particularly those who: advocate water sensitive urban design seek to secure alternative water supplies for greener open spaces are involved in planning for the delivery of water services to growth area communities take care of urban waterways. OLV will work with and through the broader water industry and other key stakeholders. These other stakeholders include state government agencies (e.g. the Department of Planning and Community Development, the Growth Areas Authority, the Department of Sustainability and Environment, and the Environment Protection Authority), local government, developers, the private sector, industry associations (e.g. Stormwater Victoria), research institutions and property owners. OLV will perform its functions in a highly collaborative manner, without exercising statutory powers. OLV will work closely with, and support, the broader water industry to ensure strategic water planning adopts an integrated water cycle management approach. This will happen at all scales, from metropolitan to local. OLV will facilitate the broader water industry to undertake on-ground projects that adopt integrated water cycle management. OLV will support the broader water industry to make better decisions through the provision of information. OLV will work with the broader water industry to ensure appropriate voluntary standards and regulations are in place to expedite the conversion to integrated water cycle management. Finally, OLV will build knowledge and capacity across the broader water industry. 5

6 References Living Victoria Ministerial Advisory Council (2011). Living Melbourne, Living Victoria Implementation Plan. State Government of Victoria, Melbourne. 6