Frequently Asked Questions

The proposed New Dungowan Dam and Pipeline Project will diversify water sources, increase town water supply for Tamworth and maintain the reliability of water for agriculture across the Peel Valley as Tamworth grows.

The Project will enable future population growth for Tamworth, which together with Chaffey Dam will also maintain the productive level of general security, reliability and water use for irrigation. The New Dungowan Dam will decrease the likelihood of Level 5 water restrictions by half and the new Dungowan pipeline will replace 70-year-old ageing infrastructure bringing more security to Tamworth’s current water supply.

Building the New Dungowan Dam and Pipeline is the best and most viable option to meet the NSW Government’s objectives of increasing town water supply for Tamworth while maintaining water for irrigators across the Peel Valley.

Diversifying water sources is one of the critical long-term strategies that is needed to support the future growth of Tamworth while sustaining water for the Peel Valley and boosting the region’s drought resilience.

The New Dungowan Dam significantly reduces water security risks as it​:

• nearly halves the risk of Tamworth running out of water​
• improves drought resilience in future droughts worse than what we have experienced to date​
• supports 20 years of Tamworth’s growth with no impact on average water allocations for general security license holders ​

We are building a new pipeline to replace ageing and failing infrastructure that is 70 years old and requires frequent maintenance to address issues such as leaks and broken pipes which causes outages and comes at a considerable cost to Tamworth Regional Council.

The 55km underground pipeline is replacing ageing infrastructure which has been expensive to maintain. A final route has been determined and detailed design was completed in 2021 for the full 55km pipeline. The route runs from Tamworth Regional Council’s Calala Water Treatment Plan to the New Dungowan Dam. The pipeline will be built in two stages.

Construction on the first stage from the Calala Water Treatment Plant to Dungowan Showground began in February 2022 and it will take up to 18 months to complete.

The second and final stage between Dungowan Showground and the New Dungowan Dam will be built after planning approval is granted. The Environmental Impact Statement for Stage Two of the new Dungowan pipeline and New Dungowan Dam was on public exhibition from Wednesday, 26 October to Friday, 9 December.

The Project would be funded 50:50 by the NSW and Commonwealth Governments. This funding would cover 100% of the capital costs of planning and building the New Dungowan Dam and Pipeline Project.

The Final Business Case for the new dam and stage two of the pipeline project was submitted to Infrastructure NSW and Infrastructure Australia for their independent reviews in January this year.

The estimated cost of the New Dungowan Dam and Pipeline Project is $1.28 billion and would be funded by the NSW and Commonwealth Governments 50:50. Independent cost estimators were appointed to prepare costings, which have also been peer reviewed.

The NSW commitment is conditional on a continued, guaranteed 50% co-contribution from the Commonwealth. NSW funding is also subject to Infrastructure Australia’s assessment of the business case and finalisation of the Project’s planning approvals.

Projects of this scale are always complex and challenging which is why a lot of work goes into establishing the final cost estimates including technical investigations, concept designs and environmental impact assessments.

The early funding announcements were only based on very preliminary assumptions about the design and potential impacts.

They did not consider factors such as detailed design, potential property leases and/or land acquisitions and did not factor in the details we now have about ground conditions and appropriate construction methodologies.

The new estimate factors in the significant increases in construction costs as we have seen across all infrastructure projects due to high inflation and supply chain challenges.

You cannot measure the value of major water infrastructure projects in dollars alone.

Building a new dam and pipeline will create hundreds of new jobs, generate millions of dollars for the local economy and will future proof the region to support population growth.

The New Dungowan Dam and Pipeline is critical infrastructure which will provide greater water security for many years to come including increasing town water supply, maintaining water for irrigators and building drought resilience.

The process for making a price determination for water users will involve a consultation and review process by IPART allowing ample opportunity for local issues and concerns to be raised and addressed.

The NSW Government has been working closely with WaterNSW and Tamworth Regional Council to determine who will own and operate the new dam and pipeline.

In July, Tamworth Regional Council passed a motion asking the NSW Government to split the dam and pipeline – so the dam would be owned and operated by WaterNSW and the pipeline would continue to be managed by Council. The Mayor has written to the Lands and Water Minister Kevin Anderson to formally make this request.

The cost of building the dam and pipeline will not impact water rates. These capital costs of the project will be jointly funded by the Federal and NSW Government’s.

If the pipeline is owned by Tamworth Regional Council, it will be a matter for them to determine the water rates and any cost recovery required to cover operations and maintenance.

If WaterNSW owns the dam, it is a matter for the Independent Pricing and Regulatory Tribunal to set the bulk water charges to Tamworth Regional Council, taking into consideration the operations and maintenance costs and the value at which the asset is transferred to WaterNSW.

IPART is independent of the NSW Government and makes its own decisions based on extensive consultation with water users.

Independent research undertaken by Eltons Consulting found that eighty-five percent of people surveyed expressed their support for the dam and pipeline project.

Between January 2020 and the end of this year, we held almost 70 community events with more than 1275 attendees, more than 110 stakeholder briefings and more than 420 landholder meetings.

We have been regularly consulting with impacted landowners (those who will host the new Dungowan pipeline), local residents, organisations and community groups.

We have also met regularly and consulted with Aboriginal individuals and groups through our Registered Aboriginal Parties during cultural heritage investigations.

We keep the community informed about the project through regular community newsletters, webinars, email, website updates, local media, Facebook and face-to-face information events.

Water Infrastructure NSW also works closely with Tamworth Regional Council and state and federal members.

We will continue with regular engagement as the project unfolds.

The New Dungowan Dam will be almost four times the size of the existing Dungowan Dam and will be able to hold up to 22.5 gigalitres which is the equivalent of about 9000 Olympic swimming pools. It will be 58 metres high with a catchment area measuring 175 square kilometres.

Local Mayor Russell Webb has told media and community that the Tamworth community will be left footing ‘a huge bill of at least $150-200 million’ if the Dungowan Dam and Second Stage of the Pipeline do not ahead.

The Council will have to pay for the Second Stage of the Pipeline themselves and will also have to upgrade the existing Dungowan Dam, so it meets current safety requirements.

In February this year, the Project listed two experienced construction companies, Acciona and Seymour Whyte, to compete for the contract to design and construct the new dam.

They were chosen to work with the NSW Government after a rigorous assessment of their capacity, capability and experience on similar projects.

The NSW Government has been working separately with each company to investigate alternative design and construction approaches.

The benefit of using a collaborative approach is that we now have a more considered design and the construction company we ultimately choose is one that is fully informed.

Taking this approach also helps fast track construction because it means the detailed design is well advanced by the time the successful company is appointed.

The existing Dungowan Dam will be decommissioned. Once the New Dungowan Dam is constructed, tested and fully operational, there will be a breach to the old Dungowan Dam wall allowing the water to flow through to the new dam. Decommissioning the old dam is essential to maintain the safety of the new Dam wall.

The focus of the present Project is to improve Tamworth’s town water security and maintain water allocations for irrigators. To ensure these priorities remain the focus, hydro power generation as a project requirement is not being considered at this time.  However, this does not mean hydro power generation will not be explored at a later date.

The new pipeline route is not identical to the existing pipeline route.  The finalised new Dungowan pipeline route was finalised after months of extensive studies, assessments, technical investigations and community consultation. Impacted landowners were also consulted about the impacts of the pipeline to their property and how they will be mitigated.

A range of options were considered and the final route was determined through extensive studies and consultation with impacted landowners. Tamworth Regional Council were also consulted.

A multi-criteria analysis approach was used to evaluate different options. The preferred pipeline alignment was assessed taking into consideration factors like private properties, ecology, biodiversity, hydrology, cultural heritage, economic factors and geotechnical (ground) conditions.

Planning of the pipeline alignment aimed to:

• minimise crossing of property boundaries
• use existing roads and property pipeline easements where possible
• reduce alignment length
• optimise the hydraulic design of the pipeline
• minimise impacts on asphalt roads, residential homes, known heritage items, waterways and threatened ecological communities.

Construction of Stage One of the Pipeline from the Calala Treatment Plant in Tamworth to the Dungowan Showgrounds began in February 2022 and is progressing well.

Work is expected to be completed by mid2023.

MPC Kinetic was awarded the contract to build the pipeline in February 2021.

The New Dungowan Dam will be constructed on Tamworth Regional Council owned land.

The new Dungowan pipeline will cross both public and private land but will be underground following construction.

Water Infrastructure NSW is working closely with landowners to reduce potential impacts to properties during the construction of the new Dungowan pipeline and any ongoing maintenance.

To date there are more than 330 local businesses on the local register.

More than 120 local businesses have been engaged to provide services to the Dungowan Dam and Pipeline project, injecting more than $2.9m into the Tamworth and Peel Valley economy.

To date, Water Infrastructure NSW has injected more than $2.9 million into the local community. The Project has engaged a range of local businesses so far on the project including accommodation providers, hospitality venues, photographers, bulk fuel suppliers, traffic controllers and many more.

Local businesses interested in being involved with the project are encouraged to register on the Water Infrastructure NSW database or call 1800 318 045. Whilst we can’t guarantee there will be opportunities for all registered businesses, the Project provides this register to all partners and contractors as the first port of call when they need services.

Water Infrastructure NSW selects project partners and contractors based on their history of using local suppliers and maximising local benefits from their projects.

Water Infrastructure NSW also works closely with Tamworth Business Chamber in the delivery of this project. This includes regular updates to members, information evenings and sharing information and opportunities for local businesses with the project.

The asset ownership arrangements for the New Dungowan Dam and Pipeline will be finalised over the coming months to determine whether it is WaterNSW or Tamworth Regional Council who will own and manage the infrastructure.

Water Infrastructure NSW has been actively engaging with both WaterNSW and Tamworth Regional Council to ensure the best outcome is reached for the infrastructure and all parties.

Water Infrastructure NSW has set up a working group involving WaterNSW, Tamworth Regional Council and NSW Treasury to work through the options, taking into considerations the financial, fiscal, regulatory, legal and other issues.

How the water is shared and how the dam is operated will be defined by the relevant Water Sharing Plan which will be set by the NSW Government.

The owner of the dam will be responsible for operating the dam in accordance with the operational rules and Water Sharing Plan set by the NSW Government. These rules include making releases for environmental or other purposes.

We understand that access to water is a major concern for landowners which is why we have listened carefully to their feedback.

As a result, every landowner with an existing connection to the pipeline will maintain that arrangement.

We are also offering every landowner along the new route an opportunity to connect to the replacement pipeline.

We will continue to work closely with landowners as the new 55km Dungowan pipeline is being installed to ensure they are kept informed and understand the new steps of the project.

All dams are designed to fill. However how long this will take will depend on the rainfall and weather patterns after the proposed dam is constructed.

The value of this project is that it will allow us to capture and hold more water when it does rain to provide improved water availability and security during times of drought and low rainfall.

The NSW and Commonwealth Government’s are jointly funding 100% of the capital costs of the New Dungowan Dam and Pipeline Project. There will be no cost recovery of these capital costs.

Water rates will be determined by whoever owns and maintains the infrastructure after it is built, either Tamworth Regional Council or WaterNSW.

If the infrastructure is owned by WaterNSW then the Independent Pricing and Regulatory Tribunal (IPART) will undertake an independent review to determine if the proposed water charges are fair and affordable.

The process for making a price determination for water users will involve a consultation and review process by IPART allowing ample opportunity for local issues and concerns to be raised and addressed.