
The project is jointly funded by the Australian Government ($46.6 million) and the Victorian Government through South East Water ($66.6 million). Australian Government funding is provided through the National Water Grid Fund.

The project will support around 40-60 farms in the region, providing a $41 million boost to agricultural output. Image courtesy of South East Water.
Project overview
This project will supply at least 4,000 megalitres (ML) each year of high-quality recycled water for:
- farm use
- future industry growth in the Western Port region.
Stage 1 of the Western Port Recycled Water Scheme includes:
- construction of a new pump station and approximately 49 km of recycled water pipelines
- a capacity upgrade for the Pakenham water treatment plant.
Recycled water is a water source that will assist local farmers to become more resilient to climate change impacts because it is not dependent on natural sources, such as rainwater. The project will provide recycled water to between 40 and 60 farms for current and future agricultural producers. This means about 2,900 hectares of additional agricultural land will be able to be used to grow fresh vegetables, such as:
- leafy greens
- broccoli
- broccolini
- asparagus.
It is also expected the project will provide environmental benefits. This includes using a portion of the high-quality recycled water each year for environmental flows in the Bunyip River at Iona.
Construction is expected to commence in late 2025 and be completed in mid-2029.
Key project benefits
Learn more
- Find out more about water in Australia.
- Learn more about the National Water Grid Fund as our primary program for responsible investment in water projects.