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.
With continued population growth, Cairns is projected to face a drinking water shortfall by 2026, making the Cairns Water Security – Stage 1 (CWSS1) project critical for the region's future. Despite successful efforts in demand management, which have reduced per capita water use by 35% since 2006, a new water supply is essential to meet the city's needs. The Cairns Regional Council (CRC) has already secured $215 million in joint funding from the Queensland and Australian Governments, but rising costs due to inflation, material shortages, and other economic pressures have increased the project's total capital cost to $472 million. The recent flooding caused by ex-Tropical Cyclone Jasper underscored the urgent need for disaster resilience, as treated water storage dropped to just 3%, putting the city's water supply and public health at risk. Advance Cairns joins CRC in advocating for an additional $257 million in funding from both state and federal governments to ensure the successful delivery of CWSS1. This funding is crucial not only to secure the water needs of Cairns' 198,000 residents and visitors but also to reduce cost-of-living pressures, build disaster resilience, and support the city's growth into the next decade.
Funding
This project has joint funding by the Australian and Queensland Governments.
 |
Australian Government $107.5 million |
 |
Queensland Government $195 million |
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 commit an additional $128.5m each towards the Cairns Water Security – Stage 1 Project, bringing the total commitment to $472m ($236m each State/Fed) with allocations to be made in the 2024-25 Queensland and Federal Budgets (Budget year and across the forward estimates) in accordance with the table below.
Overview
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) project meets that need securing urban water supply well into the next decade. The project is Cairns Regional Council’s (CRC) number one advocacy priority.
To reduce the burden on Cairns residents and ratepayers and secure the city’s water needs, CRC has already secured $215m (50:50) from the Queensland and Australian Governments towards the project’s capital cost. However, since the preliminary business case was completed in 2021-22, inflation, materials, labour shortages and cost of living pressures have seen significant increases in the cost of infrastructure projects across the nation, including the CWSS1 project. The total capital cost of the CWSS1 project has now increased to $472m[iii].
In the wake of the unprecedented flooding caused by ex-Tropical Cyclone Jasper, Advance Cairns supports and joins CRC’s calls for significant disaster relief and future-proofing of the city’s water security, requesting that state and federal governments increase their CWSS1 contribution to $236m each. The recent event highlighted the need for access to an additional water supply and treatment plant after treated water storage dropped to 3% (two hours’ supply) and, as a result, the Cairns and Hinterland Hospital and Health Service was required to prepare for possible patient relocation. Additional funding will not only allow CRC to focus efforts on restoring and repairing services impacted by the flooding but will provide future disaster resilience for the community.
Recommended funding schedule
| Government | 2023-24 | 2024-25 | 2025-26 | 2026-27 | Total |
| Australian | $6 million | $110 million | $85 million | $35 million | $236 million |
| Queensland | $6 million | $110 million | $85 million | $35 million | $236 million |
[i] economy.id, Total exports by industry sector – FNQROC, https://economy.id.com.au/fnqroc/exports-by-industry?BMID=25
[ii] Cairns Regional Council, Geography & population, https://www.cairns.qld.gov.au/experience-cairns/facts-figures-history/geography-population
[iii] Cairns Regional Council, Our water security, https://www.cairns.qld.gov.au/council/projects-and-priorities/advocacy/security
Last updated: July 2024
With continued population growth, Cairns is projected to face a drinking water shortfall by 2026, making the Cairns Water Security – Stage 1 (CWSS1) project critical for the region's future. Despite successful efforts in demand management, which have reduced per capita water use by 35% since 2006, a new water supply is essential to meet the city's needs. The Cairns Regional Council (CRC) has already secured $215 million in joint funding from the Queensland and Australian Governments, but rising costs due to inflation, material shortages, and other economic pressures have increased the project's total capital cost to $472 million. The recent flooding caused by ex-Tropical Cyclone Jasper underscored the urgent need for disaster resilience, as treated water storage dropped to just 3%, putting the city's water supply and public health at risk. Advance Cairns joins CRC in advocating for an additional $257 million in funding from both state and federal governments to ensure the successful delivery of CWSS1. This funding is crucial not only to secure the water needs of Cairns' 198,000 residents and visitors but also to reduce cost-of-living pressures, build disaster resilience, and support the city's growth into the next decade.
Funding
This project has joint funding by the Australian and Queensland Governments.
| Australian Government $107.5 million |
Queensland Government $195 million |
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 commit an additional $128.5m each towards the Cairns Water Security – Stage 1 Project, bringing the total commitment to $472m ($236m each State/Fed) with allocations to be made in the 2024-25 Queensland and Federal Budgets (Budget year and across the forward estimates) in accordance with the table below.
Overview
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) project meets that need securing urban water supply well into the next decade. The project is Cairns Regional Council’s (CRC) number one advocacy priority.
To reduce the burden on Cairns residents and ratepayers and secure the city’s water needs, CRC has already secured $215m (50:50) from the Queensland and Australian Governments towards the project’s capital cost. However, since the preliminary business case was completed in 2021-22, inflation, materials, labour shortages and cost of living pressures have seen significant increases in the cost of infrastructure projects across the nation, including the CWSS1 project. The total capital cost of the CWSS1 project has now increased to $472m[iii].
In the wake of the unprecedented flooding caused by ex-Tropical Cyclone Jasper, Advance Cairns supports and joins CRC’s calls for significant disaster relief and future-proofing of the city’s water security, requesting that state and federal governments increase their CWSS1 contribution to $236m each. The recent event highlighted the need for access to an additional water supply and treatment plant after treated water storage dropped to 3% (two hours’ supply) and, as a result, the Cairns and Hinterland Hospital and Health Service was required to prepare for possible patient relocation. Additional funding will not only allow CRC to focus efforts on restoring and repairing services impacted by the flooding but will provide future disaster resilience for the community.
Recommended funding schedule
| Government | 2023-24 | 2024-25 | 2025-26 | 2026-27 | Total |
| Australian | $6 million | $110 million | $85 million | $35 million | $236 million |
| Queensland | $6 million | $110 million | $85 million | $35 million | $236 million |
[i] economy.id, Total exports by industry sector – FNQROC, https://economy.id.com.au/fnqroc/exports-by-industry?BMID=25
[ii] Cairns Regional Council, Geography & population, https://www.cairns.qld.gov.au/experience-cairns/facts-figures-history/geography-population
[iii] Cairns Regional Council, Our water security, https://www.cairns.qld.gov.au/council/projects-and-priorities/advocacy/security
Last updated: July 2024
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