Council Calls for Modernised Water and Sewerage Program

Published on 12 March 2026

Southern Grampians Shire Council is calling for renewed State and Federal investment in water and wastewater infrastructure for small rural towns, following a recommendation endorsed at the 10 March Council meeting.

Council will formally submit a motion to the Municipal Association of Victoria (MAV) seeking support for the establishment of a modernised Country Towns Water Supply and Sewerage Program (CTWSSP).

The motion will be considered at the MAV State Council meeting on 29 May 2026, where councils from across Victoria will gather to determine key advocacy priorities for the sector.

Southern Grampians Shire Council Deputy Mayor Cr Helen Henry said the proposal responds to growing infrastructure challenges facing rural towns across Victoria.

“Many towns in our Shire and across rural Victoria rely on ageing or inadequate water and wastewater systems,” said Cr Henry. “In some communities these systems are no longer able to meet modern health or environmental standards, which creates serious challenges for councils and residents alike.

“Without necessary upgrades it becomes extremely difficult for towns to support new housing, allow subdivisions, or encourage economic development. At the same time, ageing systems increase risks to public health and the environment.”

Recent investigations, including the Penshurst Adaptive Wastewater Pilot Project, found that approximately 93 per cent of onsite wastewater systems in Penshurst were non-compliant, highlighting the urgent need for town-scale wastewater solutions.

The motion highlights that the former Country Towns Water Supply and Sewerage Program once helped regional communities deliver critical infrastructure projects. However, no equivalent program exists today, leaving councils and water authorities facing multi-million-dollar infrastructure costs that are well beyond the financial capacity of small rural communities.

“Investing in water and wastewater infrastructure is essential to protect public health, support housing growth and ensure our rural towns remain liveable and sustainable,” concluded Cr Henry.

The Municipal Association of Victoria is the legislated peak body representing all 79 councils across the state. Its State Council meets at least twice each year, providing councils with the opportunity to raise issues affecting their communities and seek collective advocacy at the state and national level.

If supported, the motion will ask the Victorian and Australian Governments to establish a long-term, co-funded program to help deliver essential water and sewerage infrastructure in small regional communities.

For more information about Southern Grampians Shire Council’s advocacy work, visit the Council website.

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