The Federal Government has pledged an additional $87.5 million to secure the future of Cairns’ drinking water supply.

The governments say they are addressing a critical funding shortfall that threatened the region’s water infrastructure project.

By 2026, Cairns' water demand is projected to surpass the capacity of its current infrastructure, posing risks to both residents and local industries.

“This isn’t just essential for the people who live in Cairns, but also for the industry who rely on the area. It’s good for Cairns, and good for Queensland,” said Tanya Plibersek, Minister for the Environment and Water. 

The project includes a new water intake at the Mulgrave River, a water treatment plant, and reservoirs in Gordonvale, all designed to integrate with the existing water network.

While the government's intervention will prevent potential rate hikes for residents - a timely move amidst widespread cost-of-living pressures - the funding shortfall has raised questions about the initial planning and budgeting processes. Some argue that such significant infrastructure should not have faced financial uncertainty so late in its timeline.

“Our investment will secure the region’s water supply into the future and create good, local jobs throughout its construction,” said Senator Nita Green, Special Envoy for the Great Barrier Reef.

The total cost of the project now stands at $472 million, with the federal contribution rising to $195 million. 

Construction, which began in August 2024, is expected to be completed by mid-2026, weather permitting.

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