300-plus homes stalled as SA Water battles 'severe constraints'

In short:

The future of more than 300 homes in a fast-growing SA town is uncertain with SA Water unable to connect the subdivision to water.

The government agency has told developers it cannot confirm whether there is "sufficient capacity" in the network and is carrying out a "technical analysis" to measure future demand.

What's next?

The housing minister has acknowledged the state's water system is "at capacity" and said additional funding will be considered for the 2028-32 funding cycle.

A proposed 300-plus home development on the Yorke Peninsula is unable to progress while SA Water investigates if there is "sufficient capacity" in its network.

While the infrastructure agency has previously acknowledged challenges in regional SA, correspondence seen by the ABC showed it was not even able to offer a timeline for new connections to a major development on Abbot Drive at Kadina.

It promised to notify the developers of connection requirements by February, but that month a SA Water staff member wrote that it "underestimated the timeframe required to finalise the response".

SA Water unable to confirm 'capacity'

Standing before the 28-hectare greenfield site, where developers plan to build around 340 homes, Wardle Real Estate Co agent Brenton Brind said he "can't get a definitive answer about why we can't get water".

Mr Brind said when the application was lodged in 2023 SA Water did not indicate there was any uncertainty about capacity to the area.

"In the township it was always a given, we've always been able to get water on any subdivision," Mr Brind said.

"In rural areas there's not always a guarantee, but we've never had an issue like this before to my knowledge."

In May an SA Water staff member told him it was completing a "technical analysis … to better appreciate how future demand can be accommodated", according to an email.

"As a result SA Water is not yet in a position to confirm whether sufficient capacity exists within the current network to support the development, nor the scope of any infrastructure augmentation that may be required,"the letter said.

"We recognise this does not provide the level of certainty sought. However, it reflects the current status of investigations and the need to ensure that any advice provided is technically robust."

A statewide problem

SA Water previously said its current four-year funding cycle, set to be re-evaluated in 2028, prioritises the Greater Adelaide Region in line with the state government's Housing Roadmap.

While it is planning to incorporate population growth forecasts in the next cycle, it said there is currently "no funding capacity as part of the Housing Roadmap to invest in upgrading … networks outside of priority areas".

Mr Brind said even if money is allocated in 2028 it could be until the mid-2030s before any yet-to-be-built properties are connected.

"If the money's not here until 2028 then we have to get the infrastructure put in, that'll take two or three years just to get it up to date, and by the time it's hooked up there's another five or ten years," Mr Brind said.

In February a coalition of South Australia's regional councils urged the state government to "reduce barriers to increasing housing supply in the regions", singling out "limited enabling infrastructure".

They said "with the right settings, regional areas can play a significant role in meeting national housing objectives".

Among the signatories was Copper Coast mayor Rosalyn Talbot, whose population of 15,000 is estimated to double by 2056 — provided it has the sufficient infrastructure.

"We've got roughly between 2,000 to 2,500 allotments at various stages of development and I'm really scared of the brakes being put on a lot of that development due to the lack of infrastructure, water specifically," Ms Talbot said.

"We have developers speaking to us all the time. Some have lodged development applications, some have development approval and are already pushing dirt around.

"They've invested a lot of money and the brakes could potentially get put on if they can't get water."

Another proposed development at nearby Port Hughes, numbering 680 homes, has also stalled while SA Water and the developer negotiate a cost-sharing agreement.

Under-investment over 'past 20 years' to blame: minister

Housing and Urban Development Minister Nick Champion, echoing previous comments, said the difficulties at Abbot Drive stem from both the Yorke Peninsula's location and under-investment from previous governments "over the past 20 years".

However, he also said developers should not assume there is "endless capacity in the system" when lodging applications.

"Not just in the Yorke Peninsula, but across the state, the water system that we've got is at capacity," he said.

"Particularly at the Yorke Peninsula, which is right at the edge of our network. To connect more homes takes a greater spend in infrastructure.

"You can't just keep connecting homes … because you'll start to get low water pressure for existing users and you put towns at risk of insufficient capacity for fighting bushfires."

At this stage there are no plans to inject immediate further funding before 2028, according to Mr Champion.

He said any additional funding, including for Abbot Drive, would have to be considered in a "diligent manner because the capacity constraints are very severe".

"We will have to say yes in some places and no in others, and that will be based on how many allotments we get out of the investment," Mr Champion said.

"We've put money to SA Water to enable growth infrastructure, not just in the metropolitan area but in country areas. But we won't be able to do that everywhere.

A $1.5 billion boost this year was tied to the Housing Roadmap which promises 50,000 new homes, largely in Adelaide's north.

Mr Champion said 464 allotments on the Yorke Peninsula have been connected to the water system over the past two years, which may have also influenced the wait time.