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Water

Australia 's cheap water

Australians use more water per capita than any other nation on earth.

It is quite puzzling considering Australia is the driest continent.

May be it has something to do with the fact that Australia 's reticulated potable water has been supplied to its mostly urban and town population at incredibly cheap prices that don't seem to reflect its true value and scarcity. Australians in rural and remote areas though often better appreciate its true value and scarcity.

The cost of reticulated potable water in Australia (2004) is approx 3 to 4 times cheaper than in comparable western countries. 1000L of water costs less than 1L of petrol and the same as approx 1L of milk.

The need for change

The public and governments began to realise around five years ago that water resources were limited and under pressure from drought, population growth and limited new additional sources. Most potential new additional water sources are either very expensive to establish and/or expensive to operate and maintain. They would require significant capital outlay (much greater in real terms compared to that required to establish existing supplies) and in some situations be environmentally unpalatable or unsustainable. This would make the cost of water from new sources much more expensive than Australians currently pay.

There is also an increasing need to recycle wastewater and improve sewerage effluent quality. In some areas of Australia, recycled water has been used on parks, ovals and reserves for some time. We are now seeing it used more for commercial enterprises, both recycled and reused on site (mainly larger industrial water users) and in reticulated systems for agriculture.

This has lead to a change of attitudes and a realisation that we can and need to use our water with greater care. The scope and need to reduce water consumption in our built environment is considerable and a number of measures are being employed by governments to achieve various target reductions to defer and reduce our need for additional water resources. It is fair to say that many more changes will occur in coming years.

The nature of changes

Changes implemented recently and those likely in the future relate to reducing potable water use and increasing the use of alternative water in areas where potable quality drinking is not necessary.

Changes mostly come under one of three categories:

  • Incentives (sticks and carrots)
  • Regulation (affecting building and infrastructure)
  • Restrictions (on use of water)

Recent changes

Typical changes implemented in the past couple of years are:

Incentives

  • government rebates on water saving products and installation of approved alternative water source systems (rainwater and greywater)
  • rising block (Tiered) pricing structures

Regulations

  • building code revisions
  • Government and/or council regulations for new homes such as "5 Star Home's" water saving measures and use of rainwater tanks for toilet flushing in Victoria, and requirements for 40% drinking quality water savings under NSW's new BASIX system.
  • revised plumbing standards (AS/NZ 3500)

Restrictions on use (water restrictions apply now in many areas of Australia and some restrictions are being legislated as permanent restrictions).

Recycled water

The provision and use of recycled water will steadily increase. In some of the new larger suburban estates third pipe systems are being installed.

In the not too distant future, we may see recycled water and/or greywater used in public toilets for flushing.

Grey Water

The current reluctance, confusion and regulatory night mare surrounding use of grey water in domestic situations will gradually change. The need and logic for greater use of greywater will eventually overcome the public health paranoia as better systems, plumbing industry expertise develops and water authority/EPA/council responsibilities are clearly and better established and accepted.

Greywater will become more widely used in the garden and flushing toilets.

Rainwater

Rainwater tanks will most likely become the norm in most urban homes. This water will be used for gardens, toilets and in the laundry. This will reduce approx 30% to 55% of current potable water use in suburban homes. To lift this to around 90 to 95% by including it for bathing (showers/baths basins) greater system standards will need to be regulated and significantly larger tank capacities are required. Larger tank capacities are not practical or even possible in some suburban and inner city properties.

Energy

Property Values

Residential property values will increasingly reflect energy and water efficiency as consumers become more aware & environmentally conscious, regulations increase and water and energy costs rise.

New Homes

Residential building is starting to change, and for the better with the new 5 Star regulations in Victoria and the BASIX system in NSW commencing within the last year. They are not perfect or complete, but they are a good start. These changes are being driven mainly in response to escalating water and energy costs, scarcer energy & water resources, increasing public awareness, and community pressure combined with government regulation to reduce greenhouse gas emissions and improve environmental sensitivity in the built environment.

Until 5 Star was introduced, many new homes built in Victoria (and many other parts of Australia for that matter) over the last decade did not perform well in the area of energy and water efficiency. In terms of the energy efficiency of the building, the average existing home in Victoria is currently rates just over 2 stars. Many design trends and architectural fashions and styles were taken from locations with quite different climates and little consideration was given to orientation and passive design. Now, all new homes in Victoria built after July 1 2004 are 4 or 5 stars and from July 1 this year new homes will need to be 5 star or greater with other water and energy saving requirements. The gap between new homes and existing homes will now widen. This should reflect in home values over time.

Existing Homes

Substantial renovations and extensions to existing homes can largely correct a lot of the deficiencies of existing homes in relation to thermal comfort and energy and water efficiency. As awareness and recognition of property value differences increase, more upgrading or retrofitting work on existing homes can be expected to improve their efficiency, comfort and value.

Introduction of new regulations for existing homes either at point of sale or when obtaining a building permit to renovate or extend could occur in coming years if the above measures aren't seen to be sufficiently effective. Point of sale regulation for established homes in the form of a current energy rating has been mandatory for a number of years in the ACT. Property value differences have already been observed there. An independent 4 year study* in 2003 comparing sale prices and house energy ratings in Canberra showed that each extra star rating added around $15,000 to the advertised price of a home.

Mortgage Reduction

Energy and water cost savings for home buyers can make a huge difference when the savings are used for mortgage reduction. Take a typical scenario: two similar sized households in similar sized homes. Household 1 is energy and water efficient with waterwise and energysmart owners, the other, Household 2 is a typical household with average energy and water efficiency features and practices. Both households have a $250,000 mortgage but Household 1 costs $600/year less to run than Household 2. The energysmart and waterwise owners in Household 1 save 2 years and 11 months and $48,000 in interest over the 30 year life of the loan (based on 8% interest rate) by applying the $50/mth savings to their loan. The actual savings should be significantly greater as the energy and water cost savings grow over time with rising energy and water pricing.

Urban Land Development

Gradual changes in urban land development and planning are now being observed. Water sensitive urban design, consideration of lot orientation and solar access is occurring and some of the larger developments are adopting sustainability principles within their building design guidelines. Third pipe systems are being trialed in a number of larger land developments where each home has two completely separate metered water supplies, one potable water inside the home and recycled water for use outdoors and in the toilets.