Yarra Valley Water has kicked off earthworks for a new 35ha recycled water wetlands to support two native species at risk of extinction.
This innovative project will use use recycled water from the Upper Yarra Sewage Treatment Plant to create a climate-resilient, swamp forest habitat that the two critically endangered species – the lowland Leadbeater’s Possum and Helmeted Honeyeater – can reply on.
Spearheaded by Yarra Valley Water, this conservation effort is being delivered in collaboration with Wurundjeri Woi-wurrung, the Department of Energy Environment and Climate Action (DEECA), Zoos Victoria, Melbourne Water, Greening Australia, North East Link Project, Jacobs and Yarra4Life.
Yarra Valley Water Managing Director, Pat McCafferty, said the start of earthworks in Launching Place is an important milestone in the Upper Yarra Restoration Project.
“It’s fantastic to get work underway that will realise our vision to make better use of land we own and create new wetlands with the recycled water we produce to preserve endangered flora and fauna species,” Mr McCafferty said.
When the restoration is complete, Yarra Valley Water anticipates the site will support approximately 50 lowland Leadbeater’s Possums and 100 Helmeted Honeyeaters.

The two species are Victoria’s faunal emblems and, as of April 2025, there are less than 40 lowland Leadbeater’s Possums and fewer than 250 Helmeted Honeyeaters left in the wild. Earlier in May 2025,21 captive-bred Helmeted Honeyeaters were released in Cardinia to help bolster the population.
They are the most intensively monitored bird and mammal in Victoria, and the highland Leadbeater’s Possum, was believed extinct for decades before it was rediscovered in 1961. The last surviving, genetically distinct, lowland population was not discovered at Yellingbo until 1986.
Historical clearing of forest in fertile valley floors and floodplains is the major reason that Helmeted Honeyeater and lowland Leadbeater’s Possum populations declined. Less than one per cent of suitable habitat for these species remains. Revegetation to restore suitable habitat is an essential requirement for recovering both critically endangered species.
The remaining wild populations of the two Critically Endangered species are found in lowland swamp forest, which depends on short periods of shallow seasonal inundation several times throughout the year.
Healesville Sanctuary have conservation breeding programmes underway for both the Helmeted Honeyeater and Leadbeater’s possum, providing a source of animals to re-populate restored habitat.
Following the earthworks, Yarra Valley Water and its delivery partners will plant thousands of local native trees, bushes and grasses to create a habitat capable of supporting the conservation of these endangered animals. Recycled water produced at the treatment plant will establish and maintain the wetlands, which will mirror the endangered species’ natural environment.
The wetlands have been thoughtfully designed to minimise bushfire risk, with firebreaks and plants with reduced flammability, as well as the year-round supply of recycled water, all reducing risk. The site will also meet all Bushfire Management Overlay requirements.
The earthworks are anticipated to take around 12 months to complete and will be followed by planting activity during 2026.
More information about the Upper Yarra Restoration Project can be found on the Yarra Valley Water website at: www.yvw.com.au/upper-yarra-restoration