Yarra Valley Water

About the Utility

Yarra Valley Water describes itself as Melbourne’s largest water corporation, providing drinking water, sewerage and recycled water to more than 2 million people across 4,000 km² of the city’s northern and eastern suburbs. An independent board appointed by the Victorian State Government governs it. Prices and service commitments are set through five-yearly Essential Services Commission reviews, and the current determination covers 2023–28. Performance is measured against six customer outcomes, with money returned to customers whenever one is missed. In the third year it fully met one outcome, partially met three and missed two, and the Community Assessment Panel recommended a $3.42 million return.

Water System

Yarra Valley Water buys treated bulk water from Melbourne Water and distributes it through a single integrated system from Warburton in the east to Wallan in the north, supplemented by recycled water from three Class A plants serving mainly the northern growth area. Drinking water fully complied with the Safe Drinking Water Regulations in 2025–26, but water lost from the supply system was 9.6% against a target below 7.3%, and average household use again exceeded its target. Supply security is a regional question: Melbourne’s storages stood at 69.3% at the start of September 2026, and restrictions over summer remain possible.

Wastewater System

Sewerage is a core responsibility: much of the north’s sewage passes through the Craigieburn Sewage Transfer Hub to Melbourne Water’s Western Treatment Plant, while the utility runs its own plants, including Aurora at Wollert, Brushy Creek, Upper Yarra and Healesville. Spills with a material environmental impact fell to 2,128 kL in the latest outcome year, well inside the target, after January 2024 storms pushed them far above it two years earlier. Growth capacity is rising: the Beveridge sewer upgrade is complete, and an upgrade will lift Healesville from around 1.4 to 2.5 million litres a day.

Investment & Priorities

The Essential Services Commission approved $1,962 million of capital works for the current five-year period, while the utility puts its wider plan at more than $2.6 billion. Actual capital expenditure reached $382.8 million in 2024–25, the highest in the series, and higher borrowing and interest rates have lifted finance costs and weakened interest cover. Brushy Creek’s recycled-water scheme is under construction, a larger Aurora plant is in early design, digital meters now exceed 100,000 and consultation on the next price submission has begun.

Sustainability & Resilience

Yarra Valley Water reports net zero direct and electricity-related emissions from 2025–26, four years ahead of its Statement of Obligations deadline, after moving to fully renewable electricity. Its focus is shifting to indirect value-chain emissions, targeted for a 67% cut by 2030, and to climate resilience: a five-year Climate Resilience Plan covers storms, bushfires, floods and drought, and all key assets have been risk-assessed. Water security is planned jointly with four other major water corporations, weighing further desalination and purified recycled water.

Key Challenges

1. Securing supply in dry years while household demand stays above target.
2. Reducing water losses and unplanned interruptions to meet outcome targets.
3. Financing a growing capital programme as finance costs rise.
4. Delivering sewerage and recycled-water capacity for northern growth.
5. Cutting value-chain emissions after reaching operational net zero.

Major Projects