NORTH East Water has secured $5 million in federal funding for a $12 million upgrade of the Rutherglen/Wahgunyah wastewater treatment plant.

The federal government has committed the money through the National Water Grid Fund’s Water Infrastructure for Sustainable and Efficient Regions initiative as part of a co-contribution to enhance the plant’s capacity, supporting housing growth and improving environmental outcomes.

Construction of the new wastewater treatment plant and a 170-megalitre storage lagoon is set to commence in June 2025 and conclude by June 2028.

North East Water managing director, Jo Murdoch, emphasised the significance of the upgrade in delivering sustainable water solutions that meet the evolving needs of the community.

“The improved infrastructure will support population, industry and tourism growth by unlocking an estimated 500 housing lots in the area”, Ms Murdoch said.

“The upgrade will elevate the quality of recycled water produced at the plant from Class C to a higher fit-for-purpose quality, which will allow for more diverse irrigation uses including water for local agriculture.

“This will give the industry more security in times of dry periods as they won’t be subjected to water restrictions during drought.

“While in times of wet weather, the higher fit-for-purpose water can be safely discharged into the Murray River without impacting the environment.”

Ms Murdoch said North East Water's investment, coupled with federal funding, reflected the water body’s agility in adapting to new growth opportunities.

“This project is aligned with Victoria’s Housing Statement and supports its targets to address the housing shortage,” she said.

“We extend our gratitude to the Federal Government for supporting this vital project, along with the Department of Energy, Environment and Climate Action for facilitating our application.”

The Rutherglen Reuse Scheme Expansion project will receive $5 million from the National Water Grid Fund, with the balance covered by North East Water’s capital infrastructure budget.