The Lance Creek Water Security Project (previously known as the Northern Towns Water Connection Project) created a network to secure water supply to South Gippsland towns and associated businesses of Korumburra, Poowong, Loch and Nyora by connecting to the Melbourne Supply System via Lance Creek Reservoir.

The combination of these systems will secure water supply for the area over the next 50 years and provide a dependable environment for community development, economic growth and future investment within the region.

As part of the 2016-17 Victorian State Budget, the Government is providing $30 million of EC funding over three years to South Gippsland Water (SGW) for this project. The overall project cost is $43.39 million, with the remaining $13.39 million to be funded by SGW.

Total EC3 investment to date: $30 m

2016-17 expenditure: $5.50 m
2017-18 expenditure: $17.40 m
2018-19 expenditure: $7.10 m


South Gippsland Water completed the project in December 2018 and water is now being supplied to all towns with no water restrictions required over the 2018-19 summer period. 

The Melbourne Water connection to Cardinia Reservoir and the Victorian Desalination Plant was used by South Gippsland Water over the 2018-19 summer to improve water taste and quality for connected customers during an algae event at Lance Creek Reservoir. 

The project was completed within budget and six months ahead of schedule. Revegetation of the entire pipeline alignment is complete and 70 per cent of landowners have signed off on reinstatement works.

Page last updated: 22/10/19