Cairns Water Security
Food and Water Security
Water and food security have become priority national policy issues on the back of record drought periods in Australia, as well as disruption to supply chains through COVID-19 and recent flooding events. The ability to meet increased demand for fresh Australian produce from Far North Queensland is at major risk due to the lack of a long-term water implementation strategy. Agricultural exports are vital to FNQ with the industry sector output currently valued at $2.7bn, constrained mainly by factors such as irrigation and access to market. Urban demand also continues to increase with Cairns’ population growth averaging 1.9% per annum over the past 10 years. This, combined with a long-running history of three million tourists visiting FNQ annually, means an effective and multi-faceted water supply strategy is required to ensure the growing needs of the region can be met.
)Due to continued population growth, forecasts indicate Cairns will be at risk of a drinking water shortfall by 2026. Demand management has and will continue to play an important role in managing the city’s water resources (per capita water use in Cairns is down 35% since 2006), but access to a new water supply is now critical. The Cairns Water Security – Stage 1 (CWSS1) will secure urban water supply well into the next decade.
In 2022, state and federal governments made an initial funding commitment of $215m (50:50) towards the project’s capital cost. However, since the completion of the preliminary business case in 2021-22, inflationary pressures experienced across the nation have resulted in increased costs for infrastructure projects, including CWSS1. As Cairns Regional Council’s (CRC) primary advocacy priority, CRC undertook a rigorous procurement process for the design and construction of the new intake, water treatment plant and pipe network, and as a result of the substantial inflationary pressures across the construction sector, the project cost has increased from $248m to $472m[i].
The importance of the CWSS1 project became even more apparent in the wake of the unprecedented flooding caused by ex-Tropical Cyclone Jasper, when key water source intakes became blocked, causing the city’s treated water reserves to drop to 3%. As a result, Advance Cairns supported and joined CRC’s calls for significant disaster relief and futureproofing of the city’s water security, requesting that state and federal governments increase financial contribution towards CWSS1.
In recognition of the pressing need to strengthen Cairns’ water security, reduce cost of living pressures and mitigate the impacts of extreme weather events, the Queensland Government recently increased its commitment by $87.5m, bringing its total contribution to $195m.
In January 2025, the Albanese Labor Government announced an additional $87.5m to deliver $390m in total funding for the Cains Water Security – Stage 1 Project.
To deliver a cost of living saving (future rates and/or charges increases avoided) of $403 per household per year over 15 years ($6,048 per household in total) and to enable CRC to focus efforts on restoring and repairing services impacted by the flooding as well as providing future disaster resilience for the community, bipartisan support is now sought.
[i] Cairns Regional Council, Our water security, https://www.cairns.qld.gov.au/council/projects-and-priorities/advocacy/security
Funding:
This project is funded on a 50:50 basis by the Australian Government ($195 million) and Queensland Government ($195 million). Cairns Regional Council has committed $82 million to the project.
Benefits to the region
• Secure water needs of 198,000 residents and visitors (as well as industry and surrounding regions which rely on Far North Queensland’s primary population and service centre).
• Reduce cost of living pressures, saving Cairns households an estimated $7,320 per household over 15 years.
• Build disaster resilience with an additional source of water intake and treatment.
Recommendation
The Australian and Queensland Governments continue to fund the Cairns Water Security – Stage 1 Project, with allocations to be made in the 2025-26 Queensland and Federal Budgets (Budget year and across the forward estimates).
Last updated: July 2025
Advocacy
