June 15, 2026
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Currently, we treat stormwater as a drainage problem or a waste product to be conveyed away as quickly as possible. For example, Melbourne generates an estimated 400 GL of stormwater runoff each year; we collect and reuse less than 4% of that – around 14 GL. Population growth and climate change mean stormwater needs to play an increasing role in Melbourne’s water supply mix. For example, the Greater Melbourne Urban Water System Strategy proposed an alternative water target – stormwater and recycled water – of 200 GL/year by 2070.
As well as augmenting water supplies, reusing stormwater delivers environmental benefits. Urban stormwater flow and water quality is recognised as the single biggest threat to the environmental health of Melbourne’s waterways.
But, despite its potential, on-the-ground and planned delivery of stormwater reuse falls well short of what is needed to achieve the 2070 target. Why? And how can we change that?
A recent report aimed to address both questions. First, it explores the barriers to stormwater reuse in Melbourne:
- Lack of enabling regulation or mandated compliance obligations
- Fragmented institutional responsibilities and unclear leadership
- Uncertain funding streams and cost recovery mechanisms
- Disconnected water, stormwater, flood, waterway and land use planning
- Lack of tools/guidance to incorporate the full water cycle in urban water planning
- Limited tools and market mechanisms to quantify environmental and social benefits
- Perceived risks around reliability, scalability and cost-effectiveness of unfamiliar options
- Limited water sector capability to use land use planning instruments.
Then, it outlines an action plan to boost investment:
- Strengthen policy, planning and regulation to unlock action
- Clarify roles and build stronger cross-sector governance
- Develop practical tools and guidance for implementing stormwater reuse
- Build capability and confidence among local governments, planners and water practitioners.
Using stormwater for nature-based solutions
Nature-based solutions (NbS) – wetlands, vegetated swales, raingardens, waterways, permeable and passively irrigated landscapes, tree canopies and shaded public spaces – are functional infrastructure that can help create healthier, more liveable places.
They need a dependable water supply, a need that stormwater can meet in many locations. NbS embedded within the urban form help retain, infiltrate and reuse stormwater where it falls through streetscapes, open space, precinct developments, buildings and public realm projects.
As well as managing stormwater, NbS can help improve water quality, strengthen water security, reduce urban heat and restore biodiversity.
They don’t replace grey infrastructure such as pipes, concrete channels and seawalls. Rather, NbS are most effective when integrated with grey infrastructure as part of urban water systems, and planned, funded and maintained accordingly.
NbS are often planned separately from the broader urban water system. Integrated planning improves reliability, reduces system pressure, and supports more efficient urban water and landscape outcomes.
The main barriers are institutional, and addressing them requires coordinated action across all levels of government, water utilities and industry:
- State and federal governments set the policy, regulatory and funding framework.
- Local governments play a key role in land use planning, place-based delivery and stewarding local assets.
- Water utilities help plan fit-for-purpose systems, support integrated servicing strategies and steward long-term performance.
- Industry is critical to design, delivery, maintenance, monitoring and business case development.
In a recent discussion paper, we identify 6 priority actions that can change how we use NbS to manage stormwater.
Nature-based solutions:
Essential urban water cycle infrastructure
Essential urban water cycle infrastructure
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