A significant rise in construction activity is forecast for Victoria’s water sector from now until the 2029–30 financial year (FY30).

This is the view of Civil Contractors Federation (CCF) Victoria, which sees water and sewerage infrastructure providers benefiting from easing investment in transport construction.

Produced by Oxford Economics Australia, the Victorian Civil Construction Outlook: Water Sector report expects water and sewerage construction activity to rise from $1.4 billion in FY25 to $2.4 billion in FY30 – a 70 per cent increase. Sewerage construction alone is set to climb nearly 80 per cent from $640 million in FY25 to $1.1 billion in FY30.

The report believes water infrastructure providers could benefit from a five-year project pipeline worth $10 billion from now until 2030.

“Notwithstanding competing policy positions, the bottom line remains the same: Victoria is in a state of seemingly perpetual growth, including a population that is forecast to soar to 10 million by mid-century,” CCF Victoria interim executive director Annie Kessell said.

“This means water services will continue to be in demand. The significant uplift being forecast in subdivisions work to help realise the government’s housing targets will be entirely dependent on the enabling civil infrastructure underneath, including water and wastewater infrastructure.”

Beyond population and housing growth, the report highlights increasing demand for bulk water capacity to support energy transition, manufacturing and emerging technologies such as data centres.

Kessel said the rush of investment is set to follow nearly eight years of stagnant growth in the sector, “at a time when Victoria’s needs have increased”.

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