The Minns Labor Government has completed major investigations into Tamworth's future water security options.
The previous government identified intervalley pipeline and off-river storage as possible project options during development of the Namoi Regional Water Strategy.
The NSW Government has now completed a Preliminary Business Case (PBC), which investigated a number of potential infrastructure options, to ensure all were thoroughly considered.
Whilst the PBC has recommended a pipeline from Keepit Dam to Tamworth as the preferred major infrastructure option, the Minister for Water has instructed that work towards a Full Business Case not continue.
This decision was based on the significant objections to this proposed solution from downstream communities and water users, and the costs associated with the proposal.
Further work to make the project construction ready, including a Full Business Case, is estimated to cost $13.6 million, with the final project likely to cost over $340 million.
Delivery of a Full Business Case and construction of a major infrastructure solution would also have taken years, while communities need practical solutions much sooner when drought conditions start to emerge.
The Minns Labor Government will instead pursue other, more practical and cost-effective options available, which do not have as significant an impact on other communities downstream of Tamworth.
That includes requesting Water NSW commence the necessary approvals to enable the future operation of the existing Chaffey Pipeline as a priority.
The NSW Government has also ruled out progressing a proposal to build an Advanced Water Treatment Plant to create recycled water for industial use, as the Full Business Case (FBC) found it would not deliver enough water security benefits to justify the investment required.
A summary of the Tamworth Intervalley Pipeline and Off River Storage's PBC and Advanced Water Treatment Plant FBC will be published by the Department of Climate Change, Energy, the Environment and Water.
The NSW Government is already delivering practical water savings measures across Tamworth, including the $55 million Calala to Dungowan pipeline, completed in partnership with the Australian Government in mid-2023, that is helping to save up to 2.2 ML of water per day. The Active Leak Detection Project is delivering a further 115 megalitres in annual water savings.
The NSW Government will continue to monitor conditions, water availability and emerging drought risks across the region.
Minister for Water Rose Jackson said:
"Right now, Tamworth's water storages remain in a strong position. This is the right time to make some decisions about how to address future challenges, before they emerge. We take the risk of drought very seriously and know how quickly conditions can change.
"The Chaffey Pipeline was built in 2019 at a cost of tens of millions of dollars, but it has been sitting un-used for years because the work to secure necessary approvals wasn't prioritised.
"Given these circumstances, I have made the decision not to proceed with spending more money on another business case and another pipeline.
"I want to assure the Tamworth community we take their water security very seriously as an important and growing regional hub. We have already invested significant sums of money alongside Tamworth Regional Council and are now prioritising the work to properly operate the Chaffey Pipeline.
"I also want to assure other communities and water users in the region that I have heard their voices and will not be pursuing options that put more pressure on stretched water resources like Keepit Dam."
