Bungendore water supply pipeline

  • Project value$2.08M (investigations) | P90 estimate (factors in a lot of risk and contingency) - $108M approximately for construction

Work Completed

A preferred route for the proposed pipeline was primarily determined in a feasibility study in 2023. Since then, design and technical specifications have been developed to bring the project closer to 'tender-ready' stage. We have also completed a detailed field land survey, geotechnical investigation, biodiversity studies, and European and Aboriginal Heritage studies. We have prepared a comprehensive Review of Environmental Factors, which was endorsed at the Council meeting on 26 November 2025.

There are six critical criteria that must be achieved before Council can consider whether to proceed with the project or not. The first two of these is the design and technical work mentioned above, and the Review of Environmental Factors. The other four criteria are explained below.

What's next

  • Intergovernmental approvals - The ACT and NSW Potable Water Steering Committee have finalised final drafts of various agreement documents. These are now undergoing legal review.
  • We have applied for funding under the Australian Government's National Water Grid Fund, which was prioritised by NSW and submitted to the Australian Government in June 2025. A decision it not likely until the Australian Government budget process in mid-2026. 
  • Council authorised beginning of land acquisition in April 2025. All affected landholders have been contacted with initial opening letters. Letters of valuation are now being issued.
  • Water (and Sewer) Pricing - The financial modelling process is now well underway. It is hoped that modelling results and some contribution/tariff scenarios will be available for review by end of 2025 or early 2026. We will engage with the community in 2026.

Background

Council is investigating a pipeline between east Queanbeyan and Bungendore as the long-term solution to the future water supply for Bungendore. Without a sustainable water supply solution Council will need to press pause on any more development.

A feasibility study was presented to the Council meeting held on 12 April 2023 which considered the viability, approvals pathway and the economics of the proposal. Council resolved to proceed with the next stage of investigation.

The proposed route would see a new water pumping station at the site of a former reservoir in east Queanbeyan and a set of 375mm and 300mm diameter water mains would then run through a series of Council-owned land, road reserves, community title land, private property, Crown land, watercourses, State Road, rail corridor, and Commonwealth land.

The estimated capital cost is in the range of $108m (this is the P90 estimate - which factors in a lot of risk and contingency). If it was to be constructed, it is expected that it would be paid for by external grants and developer contributions received for water supply. With a large upfront investment required, we expect that a loan would be required, that would be paid off by developer contributions.

The project is also reliant on securing the required intergovernmental approvals to extract water from its Queanbeyan Water Supply Agreement. This is an agreement between the Australian, NSW and ACT Governments that allows us to access bulk potable water from the ACT.

The map below shows the proposed route between Queanbeyan and Bungendore.

Aerial image showing proposed route for the water pipeline in pink

Review of Environmental Factors

QPRC News articles and Factsheets

Proposed alignment

Reports to Council