Timely planning and investment help ensure Victoria has a secure, affordable and sustainable mix of water supply options. This supports liveability, economic prosperity and water security while helping keep water bills affordable.

This 4–year $78.42 million initiative supports efforts to diversify our water supplies, while investing in water efficiency and behaviour change. This program also compliments the Water Planning for a Resilient and Secure Future initiative.

The Water Efficiency Program helps Victorians use water wisely, save water and reduce their bills too. To effectively diversify water sources, we need to take a whole of water cycle approach to water management – integrated water management (IWM) has been shown to be the most effective way to achieve this.

This initiative advances work started in previous EC funding tranches, while planning for and developing future water efficiency and treated stormwater, rainwater, and recycled water infrastructure policies and projects.

Expenditure to date

  • 2024–25 expenditure: $11.30 million
  • 2025–26 expenditure: $14.29 million

Annual progress summary

Highlights from the Water Efficiency Program in 2024–25 include:

  • Rebates were provided to 1,605 customers in vulnerable and hardship situations to empower them to reduce their home water usage and water bills, through the Community Rebate Program. The program provides water efficiency repairs and upgrades – saving households $72 per year on bills on average, with a total estimated water saving of 48 megalitres.
  • The total number of Victorian schools being assisted to reduce leaks and potable water waste through the Schools Water Efficiency Program reached 1,500 schools by 30 June 2025. An evaluation of the scheme was completed, which identified opportunities for increasing school registrations, improving the service provided and reducing costs.
  • The Department of Energy, Environment and Climate Action (DEECA) continues to support the Australian Government’s Water Efficiency Labelling and Standards (WELS) Scheme through a financial contribution of $62,000 and membership on the national WELS advisory committee. The WELS Scheme helps consumers save money on water and energy bills by providing information on product water efficiency, and by promoting and adopting water-saving technologies.
  • An economic analysis of showerhead replacement program options, including a market survey, was completed in May 2025.
  • DEECA continues to lead the Efficient Shower Impact Monitoring project. The project co-design report was finalised in May 2025 and all communication materials were finalised in June 2025. Installation of high-resolution meters is underway. Approximately 250 households are expected to have showerheads replaced by the end of 2025 and data analysis is planned to commence in March 2026.
  • DEECA continues to provide oversight and guidance for the Statewide Content (water conservation) Pilot project, led by Yarra Valley Water. The messaging framework and creative concepts have been developed, with some materials anticipated to be developed for use across the state this summer.

In 2024–25, the Integrated Water Management Policy and Program teams delivered:

  • facilitation support for the 15 IWM Forums across the state to enable the continued collaboration of water corporations, Traditional Owner Groups, local government, catchment management authorities and state government to enable an IWM approach to be adopted.
  • updated digital dashboard so Metro IWM Forum partners can continue to share and collaborate on IWM priorities.
  • monitoring, evaluation, reporting and improvement data collection to track progress of the Metropolitan IWM Forums.
  • investigative work in collaboration with IWM forum partners focussed on IWM opportunities to support the Government’s housing agenda priorities for Activity Centres and Priority Precincts.
  • resourcing initiatives to accelerate the delivery of IWM to becoming standard practice across regional Victoria through dedicated IWM Officer positions in all catchment management authorities (CMAs), and creation and design of the regional IWM Officer program, building from the pilot initiative.
  • resourcing initiatives to support Traditional Owner groups to actively participate in IWM initiatives.
  • establishment of the Northern Mallee IWM Forum and allocation of funds for the Lake Hawthorn pipeline feasibility study.
  • the development of the IWM Planning Guidelines to help embed IWM in urban land use planning frameworks.
  • the development of formal EPA guidance on managing risks associated with emerging contaminants in recycled water so that we can continue to manage any potential risks to human health and the environment.
  • progress on a feasibility study to strengthen compliance with stormwater flow reduction targets to protect urban waterway health.
  • projects to increase community knowledge of rainwater, recycled water and stormwater, such as improving rainwater tank maintenance guidance.
  • release of stormwater offsets guidance and a calculator tool, to help councils create robust offset schemes that can provide developers flexibility where stormwater quality obligations cannot be met on-site.
  • recommendations for improving compliance with on-ground stormwater management planning requirements.
  • ongoing capacity building and training activities to support planners and the development industry to comply with Victoria’s stormwater planning requirements.
  • progression of a review into stormwater licencing and supply arrangements.

Highlights from the Water Efficiency Program in 2025–26 include:

  • The Water Efficient Fixtures Regulatory Impact Statement and associated exposure regulations were released for public consultation from 26 February to 9 April 2026. The proposal would amend the Plumbing Regulations 2018 to update minimum water efficiency requirements for toilets, taps, showerheads and urinals.
  • The Community Rebate Program assisted 1,628 households experiencing hardship and vulnerability to improve the water efficiency of their homes by June 2026.
  • Developed a business case for a showerhead replacement scheme, including analysis of emissions reductions, energy savings and customer preferences.
  • Led the first phases of the Efficient Shower Impact Monitoring project in partnership with Yarra Valley Water, the University of Queensland and Griffith University to better understand the water, energy and greenhouse gas emissions benefits of efficient showers through real-world monitoring. The project team has collected home water use data and is analysing it using advanced data analysis methods.
  • Commenced a project to reduce removal of shower and tap flow controllers. When flow controllers are removed from water-efficient products, water and energy savings are reduced.
  • Under DEECA project oversight and funding, Yarra Valley Water led the development of water efficiency behaviour change communication materials, with guidance and feedback from Victorian urban water corporations. The materials were designed for use by water corporations across the state, including resources encouraging shorter showers.

In 2025–26, the Integrated Water Management Policy and Program delivered:

  • The $24 million Integrated Water Management Grant Program 2025–28 was launched in November 2025. The $7.5 million Metro Partnerships Stream grants were awarded to 16 projects across Melbourne.
  • The Integrated Water Management Planning Guidelines were released for consultation. These guidelines provide a step-by-step guide on how to prepare an IWM plan and how these plans can integrate with existing land use planning processes.
  • Metropolitan Integrated Water Management Forum partners collaborated on Integrated Water Management Plans for redevelopment precincts and activity centres across metropolitan Melbourne. IWM plans have been completed for the 6 Suburban Rail Loop East precincts.
  • Blue Factor, a modelling tool for small to medium-scale developments, was released. Blue Factor is used to demonstrate compliance with stormwater obligations and helps planners and developers test different stormwater treatment options, such as rainwater tanks, raingardens and swales.
  • Developed the Industry Water Connection Guide to help large non-residential urban water users, such as data centres, understand how to access and connect to water, sewerage and recycled water services. The guide supports early engagement with urban water corporations and emphasises government expectations around water efficiency and use of non-drinking water wherever feasible, while safeguarding water security and existing customers.

Page last updated: 28/10/26