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Discussion Paper: Impact of Water Reform on Land Use Planning and Development Assessment in South East Queensland

The Discussion Paper, Impact of Water Reform on Land Use Planning and Development Assessment in South East Queensland, was released for comment in December 2008. The deadline for submissions was Friday 10 April 2009.

Consultation was undertaken to ensure stakeholder participation in the review of changes to land use planning and development regulation in South East Queensland (SEQ) in the context of the reform of the region's water supply industry.

The Paper addresses important changes in the way water services are provided across SEQ. It considers implications for planning and development assessment in the region, including future strategic infrastructure plans.

Background to water reform in SEQ

The Queensland Government is currently undertaking the fundamental reform of the water supply industry in SEQ.

The key elements of this reform process include:

  • the construction of the $9 billion SEQ Water Grid, establishing interconnection of key supply and demand zones in SEQ and significant climate resilient sources of supply including desalination and recycled water
  • the structural consolidation of the fragmented water supply industry in SEQ, which prior to the reform process included 25 different water service providers, including 21 bulk water assets owned by 12 different bodies with 17 water retailers. Instead, the future industry structure will include just 7 service providers and the SEQ Water Grid Manager which will coordinate water transfers in the region
  • significant regulatory reform intended to provide more transparent and effective frameworks for:
    - economic regulation and pricing to incentivise efficient demand outcomes
    - planning and development regulation promoting economic efficiency and total water cycle management from regional to local scales
    - asset management regulation promoting active, whole of life asset management
    - SEQ Water Grid market rules.

The reforms are based on the principle that water is a shared regional resource and those who benefit from the arrangements and new infrastructure should share the costs. For the first time, the changes will allow coordinated management of water as a regional resource. Moving water where it is needed has been difficult during the current drought because there are so many service providers across local council boundaries. There are also opportunities to better optimise sewage and water supply infrastructure planning at a regional scale without the constraint of individual council boundaries.

The first stage of this reform process has been the restructure of the bulk water supply sector including the establishment from 1 July 2008 of the new SEQwater, Linkwater, Water Secure and the not-for-profit SEQ Water Grid Manager.

The second stage of the reform agenda involves the establishment of three combined distribution/retail entities for the SEQ region. These entities will be owned collectively by SEQ Councils, but will operate as a stand alone business separate from those Councils. They will sell and deliver water to customers, collect sewage and deliver it to treatment plants, treat and dispose of the sewage, and purchase treated water from the Water Grid Manager. These entities will be established by 1 July 2010.

The Paper


Under these new institutional arrangements the role of the State and Councils in providing water and sewerage services to SEQ is fundamentally changing.

For example:

  • the State's role has been more clearly defined through regulatory mechanisms which generally apply either at a State-wide level (e.g. The Queensland Development Code) or a regional or sub-regional level (eg. the Regional Water Security Program which implements the SEQ Water Strategy)
  • Local Governments retain land use planning responsibilities which, among other objectives, require integration of utility infrastructure delivery including water services
  • water service providers, while structurally separated from Councils, continue to remain key participants in the plan-making and development approval processes.

The Discussion Paper explains the current arrangements for land use planning, specifically planning for water supply and sewerage distribution and treatment infrastructure and assessing development applications that impact on water supply and sewerage. It outlines how changes to the water supply system will impact on state and local government roles. The Paper in particular details how regional planning, total water cycle planning for key areas and Council's land use planning would align.

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Impact of Water Reform on Land Use Planning and Development Assessment in South East Queensland (PDF 1.8 MB)

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