Cairns leaders welcome ’game changer’ water funding

Cairns’ leaders have welcomed a “game changing” $87.5 million in additional federal funding set to secure the city’s water supply into the future and save rate payers a costly hike.

Cairns Mayor Amy Eden, Minister for the Environment and Water Tanya Plibersek, and Labor Party candidate for Leichhardt Matt Smith celebrate an additional 87.5m in Federal funding to ensure Cairns future water supply. Photo Lani Sprague

Cairns’ leaders have welcomed $87.5m in additional federal funding set to secure the city’s water supply and save ratepayers $400 annually for the next 15 years.

Environment and Water Minister Tanya Plibersek confirmed the federal government would contribute $87.5m towards the $472m Cairns Water Security Project Stage 1, bringing its share to $195m, and matching the state government’s commitment.

Cairns Regional Council Mayor Amy Eden said it was a momentous day for Cairns.

“It’s cost of living relief and it means our city can thrive and grow into what it is destined to be.

“This is the power of Team Cairns this is not an achievement Cairns Regional Council has done alone we have had the support of whole community and our federal and state partners for that $195 million.”

Advance Cairns Chief Executive Jacinta Reddan, who has spearheaded advocacy efforts for the additional funds, welcomed the announcement.

“Advance Cairns welcomes the additional $87.5 million funding commitment for Cairns Water Security – Stage 1, which is set to be included in the upcoming federal budget on March 25,” she said.

“This $87.5 million commitment from the Albanese Government is a game-changer for Cairns, ensuring our growing region has a secure and reliable water supply. With the federal budget now backing this critical project, we have certainty that water security will not be left to chance.

Cairns Mayor Amy Eden, Minister for the Environment and Water Tanya Plibersek, and Labor Party candidate for Leichhardt Matt Smith celebrate an additional 87.5m in Federal funding to ensure Cairns future water supply. Photo Lani Sprague

With Cairns’ water demand expected to outweigh supply by 2026, construction on stage 1 of the project began in August 2024, despite the now filled $87.5m funding shortfall.

Ms Reddan said it was a win for the long term prosperity of Cairns and ratepayers.

“With a federal election looming, this funding commitment locks in a vital investment for our region, shielding residents from potential rate hikes and securing the long-term future of Cairns’ water infrastructure,” she said.

“This project is not just about meeting today’s needs — it’s about future-proofing our city. The Australian Government’s investment ensures that by 2026, Cairns will have the modern water infrastructure it needs to sustain growth, support industry, and provide certainty for generations to come.

“We are absolutely delighted with today’s announcement which follows sustained advocacy in lock-step with Cairns Regional Council. This was a key priority when we led a delegation of 30 regional business leaders to Canberra in November. It speaks to the power of collaboration and a true team approach across the region.

Aerial view of the Cairns Water Security Project Stage One construction site, north of Gordonvale. The $472 million project will generate a new drinking water supply from the Mulgrave River once completed in 2026. Stage One of the project consists of an intake pipe at the Mulgrave River, a reservoir and water treatment facility on the site pictured, and a network of pipes connecting the project to the existing Cairns water grid. Picture Brendan Radke

Ms Reddan called on the opposition to match the funding.

“If the federal election is called prior to the budget being tabled we would call on the Opposition to match this critical commitment.”

Initially costed at $248m in 2022, inflation was blamed for the blowout before Cairns Regional Council began making requests for additional funding – warning that without state and federal intervention, ratepayers were staring down the barrel of a rates increase of over $400 per year for 15 years.

ALP candidate for Leichhardt Matt Smith it had been a signficant 24 hours with the Taipan’s also winning.

“Then they told me why she was coming up and I pulled the car over and gave a little fist bump,” he said.

“I can say that today every ratepayer in Cairns is $400 a year better off for the next 15 years.

“Water security is now taken care of, this will allow our city to grow and our families to prosper.”

The $472m project is now equally funded by the state and federal governments contributing $195m, with Cairns Regional Council tipping in the remaining sum.

Originally published as Cairns leaders welcome ’game changer’ water funding