Sod turned on major $53m water security project
14 July 2025
Shovels have hit the ground on a monumental water infrastructure project that will bolster drought resilience across the Mid North Coast by delivering a new world-class water treatment plant to significantly boost drinking water quality across the region.
The sod turned on the landmark $53 million project, heralding the start of construction to build infrastructure that will treat raw water from the Steuart McIntyre Dam and Sherwood Borefield.
The region gets its main water supply from the Macleay River which is extremely vulnerable to drought and has previously stopped flowing under these conditions.
The 2,500 megalitre (ML) Steuart McIntyre Dam was built in response to the 1994 drought and only draws water from the Sherwood Borefield during dry spells when yield from the bores is low.
Currently, water from the dam varies in quality throughout the year and the existing infrastructure is unable to effectively treat the water to a high enough standard to maintain a continuous supply across the network.
A new state-of-the-art water treatment plant that uses UV filtration and chlorination will deliver safer and more reliable water to more than 18,000 residents in Kempsey, Frederickton, Smithtown and Gladstone.
Work also includes new pumps, tanks and a pipeline to connect the dam and borefield to the new high-tech plant.
The project is a jointly funded initiative:
- $12.5 million from the Australian Government’s National Water Grid Fund
- $9 million from the Australian Government’s Housing Support Program
- $13.2 million from the NSW Government’s Safe and Secure Water Program,
- $4 million from the NSW Government’s Emergency Drought Program
- $14.3 million from Kempsey Shire Council
The NSW Government’s Safe and Secure Water Program is supporting more than $1 billion worth of projects across the state in various stages of delivery.
Quotes attributable to Acting Minister for the Environment and Water Pat Conroy:
“The Albanese Government is pleased to partner with the NSW Minns Government and Kempsey Shire Council to deliver this important project.
“Through this investment, the region will see a positive boost to its water security and quality, along with improved climate resilience – a crucial need especially during periods of drought.
“We’re all committed to delivering crucial projects to safeguard our nation’s water resources for the communities that rely on them.
Quotes attributable to the NSW Minister for Water the Hon Rose Jackson:
“The last drought was brutal for this region. The Macleay River stopped flowing for two months and the quality of water in Steuart McIntyre Dam was so low it couldn’t be treated properly.
“Thankfully, the drought broke in 2020 before emergency water treatment was needed, but now we are kickstarting work on delivering the infrastructure they need to support the community over the long term.”
“This new plant will be a game changer, locking in water security for Kempsey and the surrounding townships for decades to come and ensuring there is more reliable, secure and high-quality water to support a growing population.”
Mayor of Kempsey Shire Council, Kinne Ring said:
"Our region is extremely susceptible to natural disasters, particularly drought, by investing in infrastructure that ensure safe, secure and reliable drinking water builds our resilience as a community to cope with any weather event.
“Importantly, the new plant will enable us to treat water from Steuart McIntrye Dam, which varies in quality throughout the year, to a much higher standard
“This is one of several projects the Australian and NSW Governments are helping us to fund and we’re thankful for their ongoing support in ensuring our community has access to safer and more reliable drinking water when we are most vulnerable”
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