Victoria braces for Water Restrictions as dam Levels Plummet
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Victoria is facing teh increasing likelihood of widespread water restrictions in 2026, as the state’s water storage levels continue to decline amid prolonged dry conditions. A new report reveals that dam levels have fallen to 61% capacity – a 19% drop from the same time last year – raising concerns about water security for both metropolitan and regional areas.
Rainfall deficit Fuels Concerns
The Annual Water Outlook, released by the Department of Energy, Environment and Climate Change, paints a concerning picture of Victoria’s water situation. Most of the state recorded below-average rainfall in 2025, with the north-west and central regions experiencing notably severe dryness. Despite some late rainfall in November, Water Minister Gayle Tierney acknowledged the challenging outlook.
Already Facing Restrictions
In a proactive move to conserve water,authorities have already implemented restrictions in several regional towns. Winter restrictions are currently in place in Allendale, Broomfield, Newlyn, Kingston, Smeaton, Springmount, Apollo Bay, Marengo, Skenes Creek, Euroa, Violet Town, Daylesford, Hepburn, and hepburn Springs due to substantially lower rainfall in those areas.
Regional water storage levels have fallen to 57%, down 21% over the past year. The report identifies Fish Creek, Mansfield, Bright, and the Westernport Water supply area as being particularly at risk of stricter measures in 2026. Stage 1 restrictions are already in effect for the Forest Hill system managed by Central Highlands Water, with the potential for escalation to Stage 2 if conditions do not improve.
Melbourne’s Water Usage Reaches Decade High
While Melbourne is considered less promptly at risk than some regional areas, the city’s water storages have also declined, falling 12% to 76% capacity. Residents and businesses consumed 500 billion litres of water over the last financial year, while inflows into dams totaled only 305 billion litres.
Daily water consumption has risen to 169 litres per person – the highest level since 2007. The report highlights that melbourne experienced the steepest January-June decline in storage levels since the devastating millennium Drought in the early 2000s.
Permanent Water Saving Rules & Future Demand
Yarra Valley Water, which supplies approximately one-third of Melbourne’s population, is currently at 75% capacity – one of the lowest levels in a decade. Acting Managing Director Bridie Fennessy emphasized the need for residents to be mindful of their water usage.
“We’re really at the stage of asking our community to think carefully about how they’re using water so we don’t need to get to that point with restrictions,” Fennessy stated.
She also noted that many residents are unaware of the permanent water saving rules in place across the state, which include:
- Hand-held hoses must be fitted with a trigger nozzle and be free from leaks.
- Hand-held hoses, buckets, or watering cans can be used at any time to water gardens and lawns.
- Watering systems (sprinklers and drips) can only be used between 6pm and 10am.
- Watering systems must be fitted with a rain or soil moisture sensor.
- Water cannot be used to clean hard surfaces like driveways, paths, and concrete, except for emergency cleaning or construction.
- Water fountains and features must recirculate water.
Looking ahead, the state government estimates that Victoria will need an additional 95 billion litres of water per year over the next decade, even with the Victorian Desalination Plant operating at full capacity. The Bureau of Meteorology’s outlook for December to February predicts continued below-average rainfall and above-average temperatures this summer, further exacerbating the situation. Forecaster Jonathan How noted Melbourne has received 572 millimeters of rain this year, significantly less than the average of 648 millimeters.
The Annual Water Outlook serves as a critical reminder of the challenges of water management in a changing climate, and the importance of proactive planning and responsible water usage for future generations.
