Key Takeaways
- Melbourne and major regional cities across Victoria may face water restrictions due to low dam levels and dry conditions
- Victoria’s water storage levels have dropped to 61% capacity, down 19% from last year
- The state government is closely monitoring water reserves and urging Victorians to conserve water
- Permanent water saving rules are in place, including restrictions on hose use and watering systems
- The Victorian Desalination Plant is helping to deliver reliable water supplies, but the state will need an extra 95 billion litres of water per year over the next decade
Introduction to Water Restrictions
Melbourne and major regional cities across Victoria could be placed on water restrictions as dry conditions cause dam levels to plummet across the state. The Annual Water Outlook, released by the Department of Energy, Environment and Climate Change, reveals that Victoria’s water storage levels have dropped to 61% capacity, which is down 19% from this time last year. This significant decline in water storage levels has increased the likelihood of urban water restrictions across most of Victoria in 2026, which would mean some metropolitan areas would have their water usage tightened for the first time since the Millennium Drought in the early 2000s.
Water Storage Levels and Rainfall
Most of Victoria recorded below average rainfall in 2025, with parts of the north-west and central regions particularly dry. The report states that despite the welcome late rain during November, major water storages across Victoria will be entering this summer at lower levels compared to previous years. Water Minister Gayle Tierney noted that in the south-west and west Gippsland regions, farmers have experienced significantly below average to lowest on record rainfall conditions over the last two years, which is having a significant impact on rural livelihoods, households, and local communities. The Bureau of Meteorology’s December to February outlook found it was likely Victoria would continue to receive below average rainfall while recording above average maximum temperatures this summer.
Regional Water Restrictions
Regional water storage levels had fallen to 57%, down 21% over the past year. Stage 1 water restrictions are in place for Central Highlands Water’s Forest Hill system, and this could escalate to Stage 2 if conditions remain dry. Regional towns which are the most at risk under a dry climate scenario during 2026 include Fish Creek, Mansfield, Bright, and Westernport Water’s supply area. The report also stated that parts of southern Victoria received their average total, and there was above average rainfall in Central Gippsland and East Gippsland. However, the overall trend of below average rainfall and low water storage levels has increased the likelihood of water restrictions in regional areas.
Melbourne’s Water Situation
Melbourne’s water storages had fallen 12% to 76% capacity, and residents and businesses used 500 billion litres of water over the last financial year while the dams only received 305 billion litres of inflows. Daily water consumption rose from 163 to 169 litres per person — the highest level since 2007. As a result of low inflows and higher water use, Melbourne’s storages saw the steepest January-June decline since the Millennium Drought. Yarra Valley Water, the largest of Victoria’s metropolitan water corporations, is sitting at 75% capacity, which is one of the lowest levels in a decade. The corporation’s acting managing director, Bridie Fennessy, is urging Victorians to abide by permanent water saving rules to help conserve supplies.
Permanent Water Saving Rules
Permanent water saving rules are in place across Victoria, including restrictions on hose use and watering systems. Hand-held hoses must be fitted with a trigger nozzle and free from leaks, and watering systems such as sprinklers and drips can only be used between 6pm and 10am. Watering systems must be fitted with a rain or soil moisture sensor, and water cannot be used to clean driveways, paths, concrete, tiles, and timber decking, except in certain circumstances. Victorians are encouraged to limit their showers to four minutes, wait until washing machines and dishwashers are full before putting on a load, and turn their taps off while brushing their teeth. By following these rules and being mindful of their water usage, Victorians can help conserve water and reduce the likelihood of water restrictions.
Future Water Needs
The state government is closely monitoring water reserves, and the water minister said that Victoria’s Annual Water Outlook is a reminder of the complex challenges of water management in Victoria, and the importance of planning for growing water demand and a changing climate. Desalinated water is currently helping to deliver reliable supplies to more than 6 million people across Geelong, Melbourne, and parts of Gippsland. However, modelling estimates that over the next decade Victoria will need an extra 95 billion litres of water per year on top of the Victorian Desalination Plant running at full capacity. This highlights the need for continued water conservation efforts and planning for future water needs.