Development stops on 1,000 homes as SA Water hits cost roadblock
Construction has yet to begin on two lifestyle villages in the Copper Coast and Port Wakefield regions while developers and SA Water negotiate cost-splitting for millions of dollars in upgrades.
Developer Metacap unveiled plans for the 680-home Riverbend lifestyle village in October 2023 and advised Copper Coast Council the first sod would be turned last July.
However, council chief executive Dylan Strong said the project at Port Hughes hit a roadblock which SA Water and the developer blamed on insufficient water capacity.
"The lack of capacity within the SA Water network is not unique to the Copper Coast," Mr Strong said.
"But it is compounded in the regions of SA that are experiencing the growth that most regions want, but not all of them have.
"What's happened over time is the area has continued to grow and the insufficient capacity has gotten worse.
Mr Strong said SA Water had carried out ongoing expansion work for "the past few decades" but "not all of those works occurred when scheduled" because population growth exceeded forecasts.
With retirees and young workers flocking to the region, he said the council's population of 16,000 was expected to double by 2055 if housing could be built.
Mr Strong added that SA Water had indicated there was no capital expenditure left in its 2024–28 business plan, which limited its options.
Wakefield Regional Council Mayor Rodney Reid said similar disagreements about costs had beset the Hamley Bridge development, where up to 400 homes have been earmarked by developer Robert Moore.
Neither SA Water nor Mr Moore have signalled delivery time frames yet, according to Mr Reid.
"Increased revenue through rates on developed properties has not occurred and this means less funding to spend on existing and new projects" he said.
"It also means that we continue to have a shortage of housing both owned and rented across the council district."
An SA Water spokesperson said "developers are expected to make financial contributions to any network upgrades or expansions".
"This protects affordability for our existing customers by ensuring SA Water — and our broader customer base — is not subsidising any realised profits from private development," the spokesperson said.
The developer, Robert Moore, declined to comment.
In November, the state government pledged $1.5 billion in new water and sewerage pipes as part of its Housing Roadmap, but no additional funding was set aside for the aforementioned developments.
With the aim of servicing 40,000 new homes, planning authorities have prioritised developments immediately north and south of Adelaide.
SA Water's spokesperson said planning was occurring this year for the water networks servicing Yorke Peninsula, which would "incorporate the latest growth forecasts" for 2028–32.
"As part of the state government's Housing Roadmap we are investing $1.5 billion during the current four-year regulatory period to grow and expand our water and wastewater networks in South Australia, where it's needed the most," they said.
"This investment will deliver large-scale infrastructure, such as new trunk water and wastewater mains, to unlock capacity for new homes to be built and connect to our networks, specifically across Adelaide's northern growth front.
"We currently do not have funding capacity as part of the Housing Roadmap to invest in upgrading our water and wastewater networks outside of priority areas.
"In Kadina, some development has been enabled through minor network augmentations, and since 2016 we have invested in water main upgrades, installed larger water mains and valves in Moonta, and upgraded water storages in Lower and Upper Paskeville.
"We understand the important economic benefits that developments across the state will deliver and have prioritised engaging with councils and developers in areas like this to understand the specific upgrades required to our infrastructure."
The Housing Roadmap blamed South Australia's water woes on under-investment, calling it "a major failure of previous governments at all levels".
Local Government Association SA chief executive Clinton Jury said councils were actively rezoning land and offering incentives to developers.
"Councils raised this issue at last year's LGA Annual General Meeting because they want to be part of the solution," Mr Jury said.
"The government's recent investment in water infrastructure in metropolitan Adelaide is a welcome step, and we now need to see that same level of strategic focus extended to regional areas.
"This is a complex issue that's been building over many years, it won't be fixed overnight. We need continued investment and collaboration to support more housing and growth in regional areas."
Last June the state government introduced an extra charge to water bills in order to finance new capital works, costing households on average an additional $80 per year.
Metacap and Housing Minister Nick Champion were contacted for comment.
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