The pipeline is aimed at alleviating water supply issues held by horticulturalists in the Yarra Valley. Water security is lowest in the north-west of the municipality, due to lower stream flows and reliance on catchments.
A survey of landholders with water entitlements in the area found that there was a demand for 1,400 ML/d at a price of $300 per ML, mostly in the Coldstream-Gruyere area and south of the Yarra River.
The most cost-effective pipeline route, established by Yarra Valley Water, is approximately 21 km in length, delivering 725 ML/d to 15 landholders in the Coldstream-Gruyere area. The pipeline will also be accessible to approximately 40 businesses.
Private benefits of the pipeline were found to be more secure water supply and expanded production for landholders, valued at $A46 million over 25 years. Public benefits are also to be received, with positive impacts throughout the wider regional economy as well as health benefits to local river systems by way of reduced nutrient loads.
