24 Feb 2026
A cleaner Kanamaluka/Tamar estuary relies on sustained infrastructure investment
Ongoing investment in water and sewerage infrastructure is fundamental to improved environmental outcomes along the Kanamaluka/Tamar estuary, TasWater says, as the Tasmanian Economic Regulator considers changes to the utility’s proposed Fifth Price and Service Plan (PSP5).
PSP5 outlines major upgrades to sewage treatment and network infrastructure in the greater Launceston area, aimed at reducing the risk of overflows, improving treatment performance and delivering long-term environmental benefits for local waterways. TasWater’s proposal seeks an annual price increase of 8.8 per cent inclusive of inflation over four years to support these essential improvements.
The Regulator’s draft determination has proposed a reduced annual increase of 4.3 per cent, inclusive of inflation, which TasWater says would constrain the ability to deliver infrastructure upgrades at the scale and pace required.
TasWater Chief Executive Officer George Theo said the Kanamaluka/Tamar estuary is a special landscape that connects the Launceston community.
“Modernising treatment plants and sewer networks is about protecting our waterways, improving water quality, and safeguarding ecosystems. These outcomes don’t happen without sustained, long-term investment,” he said.
Mr Theo warned that delaying investment in major work on Launceston’s sewerage network could have significant impact on the future of the Kanamaluka.
“Late last year, we announced the start of preliminary work on the Launceston Sewer Transformation project - one of the most significant environmental and infrastructure upgrades ever undertaken in northern Tasmania,” he said.
“A reduced annual price increase, such as that proposed by the Regulator, has real consequences, and will mean upgrade works, across the state will face delays. The Launceston Sewer Transformation is a project earmarked for reassessment, and likely deferral.
“Protecting our environment is a fundamental responsibility, not a nice to have. Reducing investment means delaying improvements to waterway health and postponing the benefits these projects are designed to deliver to the community.”
TasWater’s proposal also aims to unlock future housing growth for the north of the state, especially around Legana, where water and sewerage assets are already constrained.
“We know that Legana is key for housing growth around Launceston. But the reality is that the area’s existing sewage treatment plant is currently operating at 150 per cent over its designed capacity,” Mr Theo said.
“Growth simply cannot occur without infrastructure that can cope with demand. The housing crisis won’t be solved by holding back infrastructure investment.
“TasWater remains committed to working constructively with the Regulator through the formal process to achieve an outcome that balances household affordability with the infrastructure needed to support river health, new homes as well as giving customers the ability to have more control over their bills by increasing the variable component of a customer’s bill from 16 per cent to 33 percent.”
The Regulator will release its final decision in late April.