Yarra Trams has slashed water use at its New Preston Depot by almost 70 per cent, saving around 6.6 million litres of water annually, after smart monitoring technology identified inefficiencies in its tram washing system.
The savings were achieved after Yarra Valley Water installed digital data loggers at the depot as part of the Victorian Government’s WaterSmart program. The technology is designed to give high water-using sites real-time visibility of how water is being used, helping operators detect anomalies and target efficiency improvements.
The depot, operated by Yarra Trams and servicing Melbourne’s E-class fleet, includes automated tram wash facilities. The installed loggers picked up an unusual spike in water consumption occurring between 4–5am, prompting a closer investigation into system operations.
Data analysis traced the spike to the tram wash backflush cycle – a process used to keep the wash equipment clean. While essential for maintenance, the monitoring showed the cycle was running more frequently than necessary. By optimising the backflush interval to 15 minutes, Yarra Trams was able to reduce water use by around 18,200l per day without affecting cleaning performance.
“Yarra Trams shows how a small operational change, backed by good data, can deliver significant savings,” said Yarra Valley Water General Manager Retail Services Lisa Anelli.
“Programs like WaterSmart give businesses a clear picture of how water is being used and where efficiencies can be found – saving money and helping protect precious water supplies.”
The WaterSmart program, funded by the Victorian Government and delivered through water corporations, supports major non-residential water users – including councils, healthcare facilities, aged care providers and industrial sites – to identify leaks, improve processes and reduce consumption through digital monitoring and water audits.
Across 2024/25, WaterSmart participants collectively saved 70 million litres of water and $366,000 in water bills.
The achievement comes as Melbourne’s water storages fall below 68 per cent following extended hot and dry conditions, increasing pressure on water efficiency across the metropolitan network.




