Water under pressure: expanding capacity amid rising risk in Australia
Rising demand and climate pressures are straining Australia’s water future.
Australia’s population is expected to continue steadily increasing, particularly in key cities like Sydney, Melbourne, Perth and Brisbane. At the same time climate change is making rainfall – a key source of water supply – less reliable and droughts more frequent. This is placing significant strain on existing water systems, many of which are aging and not equipped to meet long-term demand.
Federal and State governments are actively increasing investment in water infrastructure, particularly in regional and high growth areas to address current and future water needs. However, in some areas these efforts may be coming too late – existing water infrastructure capacity in places like Adelaide have already led to challenges in meeting residential construction demand. This situation underscores the essential role of water in economic activity.
Water supports every major sector of the economy – it is a critical input for agriculture, energy, generation and industrial processes. When water becomes scarce or quality declines, the performance of these sectors is directly affected. Looking ahead, as Australia accelerates its transition towards high-value, low emission industries including green hydrogen and advanced digital infrastructure the demand on water resources is set to intensify, placing even greater pressure on already stretched resources.
Chart 1: Water supply and storage construction continues to strengthen
