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Water infrastructure funding key to unlocking new homes across SA

2 February 2026
Funding for water infrastructure has underpinned a landmark $801.5 million joint federal-state investment to deliver thousands of new homes across South Australia, demonstrating the importance of investing further in stormwater and sewerage systems.

The new deal to unlock 17,000 homes across the state is founded on a $300 million allocation to create more water infrastructure in Adelaide’s northern suburbs, which will accommodate 4000 of those homes being built.

The announcement by Prime Minister Anthony Albanese and South Australian Premier Peter Malinauskas revealed construction will be fast-tracked so that the first of these homes will be underway by 2026-27.

LGA President, Mayor Heather Holmes-Ross said a lack of water infrastructure is a significant barrier to housing growth in South Australia and that it was pleasing the federal and state government have recognised this.

“Investing in water infrastructure is one of the fastest ways we can increase housing stock across the state,” Mayor Holmes-Ross said.

“A key factor holding back development is adequate investment in crucial water infrastructure such as stormwater and sewerage systems, both of which are vital to establishing new housing.

“In many regional towns there is currently no commercial incentive for developers to proceed, because the cost of self-funding wastewater infrastructure is prohibitive relative to the achievable sale price of lots.

“Because of this, many viable housing projects stall or do not proceed despite strong local demand.

“It’s incredibly pleasing to see federal and state governments recognise this by investing heavily in water infrastructure to support housing in South Australia and hopefully it’s a sign of more to come, particularly for our regions.”

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For media enquiries, contact media@lga.sa.gov.au