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CBA for Water Tanks in Reticulated Areas

Client: Southern Downs Regional Council

State: QLD

The Southern Downs region of Queensland is currently experiencing a severe drought which is causing significant strain on the regions water supplies. In 2012 the Queensland Government announced the repeal of the Mandatory Parts (MP) 4.2 and 4.3 in the Queensland Government Development Codes which related to the requirement for water tanks and other water saving devices to be provided with new houses and new commercial and industrial buildings. Given the continuing severe drought conditions, Council made an application to the Minister of Housing and Public Works to apply MP 4.2 and 4.3 to the Southern Downs regions reticulated town water supply areas, for which a cost benefit analysis outlining the evidence base for opting into mandatory installation of water tanks was required.

AEC was engaged to undertake a Cost-Benefit Analysis (CBA) to explore the merits of opting in to MP 4.2 and MP 4.3. The CBA has been conducted in line with Queensland and Australian Government guidelines, examining the stream of socio-economic costs and benefits anticipated from the project. AEC also developed projections of uptake of rainwater tanks, and provided a comprehensive cost comparison analysis for providing water to customers within the Southern Downs LGA on a per kilolitre (kL) basis between identified alternative water supply options.


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