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Home News

Milestone for $25M Daylesford water upgrade

by Katie Livingston
August 23, 2025
in News, Pipelines, Projects, Spotlight, Sustainability, Water
Reading Time: 4 mins read
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From left: Central Highlands Water Chair, Angeleen Jenkins; Victorian Minister for Health, Mary-Anne Thomas; Victorian Minister for Water, Gayle Tierney; and Central Highlands Water General Manager Customer & Business Services, Philippa O'Sullivan, on location at the Daylesford Water Treatment Plant. Image: Central Highlands Water

From left: Central Highlands Water Chair, Angeleen Jenkins; Victorian Minister for Health, Mary-Anne Thomas; Victorian Minister for Water, Gayle Tierney; and Central Highlands Water General Manager Customer & Business Services, Philippa O'Sullivan, on location at the Daylesford Water Treatment Plant. Image: Central Highlands Water

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Central Highlands Water is powering ahead with the delivery of a new pipeline, which is set to boost water security in Daylesford and nearby towns. 

The Victorian Minister for Water, Gayle Tierney, announced the start of the third and final stage of the $25 million upgrade to the water supply system for Daylesford, Hepburn, and Hepburn Springs. 

Once completed in 2026, the pipeline will connect Daylesford to the Goldfields Superpipe, able to boost the Wombat and Bullarto reservoirs with up to 300ML of additional water per year. This secures more water during times of drought and low rainfall, reducing the risk of water restrictions. 

Mr Tierney said this new pipeline will support the long-term liveability, growth, and economic prosperity of the Daylesford region and ensure that residents will have a water supply that’s more resilient to dry conditions. 

“By investing in climate resilient infrastructure today, we’re ensuring that communities like Daylesford have a reliable and sustainable water supply into the future,” she said. 

Daylesford, Hepburn, and Hepburn Springs are currently on stage two water restrictions, as the region’s driest summer and autumn in more 30 years saw storage levels drop to around 30 per cent.  

Completion of the first two stages of the project have already seen the construction of 17km of pipeline connecting Daylesford to the Goldfields Superpipe, with works now starting on upgrades to the treatment plant to boost its capacity, ensuring more high-quality water is available for households and businesses.  

The $25 million upgrade is Central Highlands Water’s largest investment into Daylesford’s water supply – marking a significant milestone in the region’s water security. 

Central Highlands Water Managing Director, Jeff Haydon, said the completion of this three-stage project represents a lasting investment in water infrastructure, delivering long-term benefits in water security, reliability, and quality for the Daylesford and Hepburn communities. 

“This essential infrastructure will enable access to 300ML of supplementary water per year, complementing Daylesford’s surface water sources and strengthening the region’s overall water resilience,” he said. 

While projects like this direct more water to the region, the State Government said that Victoria’s climate is drying with declining rainfall, and population growth all put increasing pressure on drinking water supplies.  

The Victorian Government said it is taking action to secure more water for the future and ensure everyone has reliable, safe and affordable drinking water in the decades ahead. 

It also said that all Victorians can do their bit to save water, including making simple changes inside and outside our homes such as taking shorter showers, fixing leaks, washing with full loads, and not watering gardens in the heat of the day.  

Member for Macedon, Mary-Anne Thomas, said that this is a critical investment into the community’s health and wellbeing  

“It will help us avoid future water restrictions and secure our water supply for generations to come,” she said. 

 

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