Hunter Water Developer Charges
Developer charges will help recover the costs of providing infrastructure for new developments as our region continues to grow.
We've created this interactive tool to help you find information about Developer Charges and our DSP areas. Use the tabs above to navigate this page or simply scroll through.
Hunter Water has played a vital role in shaping the Lower Hunter region over the past 130 years, and we're continuing to do so.
Today we are proud to provide services to more than 600,000 customers across the Lower Hunter region, including thousands of local businesses.
The Hunter Regional Plan 2041 recognises that the Hunter is home to more than 860,000 people, with the population projected to increase to 949,850 people by 2041.
As the regional population grows and development continues, we need to build the water and wastewater infrastructure to service new customers. This requires us to construct new assets to connect new residential and commercial developments in greenfield areas, as well as renew and augment our existing systems to support higher density development in established areas.
Case study: Gillieston Heights
Under the NSW Government's Hunter Regional Plan 2041, as population grows, Maitland will require an additional 25,200 dwellings by 2041.
One of the city's most rapidly developing suburbs, Gillieston Heights, sits about five kilometres from the Maitland CBD and is positioned on the Cessnock Road corridor, providing ease of access to the Hunter Expressway and the New England Highway.
Figures from the Australian Bureau of Statistics show Gillieston Heights' population more than doubled across a five-year period, going from 1,372 in 2011 to 3,150 in 2016. Fast forward to 2021, and the number of residents living in the suburb had jumped to 4,796.
We are actively supporting growth in this area.
Our $73 million upgrade of the Farley Wastewater Treatment Works (pictured), which was completed in 2021 and services Gillieston Heights and several other growing suburbs, is just one example of our commitment to enabling growth in our region.
Funding growth in the region
Hunter Water’s 2018 Funding and Delivery of Growth Infrastructure Standard recognised that capital investment in water and wastewater infrastructure to connect new developments can provide shared capacity for future developers and future customers.
The Standard set out the circumstances in which Hunter Water may enter into a commercial agreement to repay developer costs incurred in delivering connection infrastructure and any upsized reticulation assets. We’ve entered into about 50 commercial agreements since 2018.
A key feature of the 2018 Standard was the staggered repayment of developer costs as new lots were connected to Hunter Water’s networks.
We are committed to supporting future growth in our region
With the reintroduction of developer charges, Hunter Water will continue to invest in connecting assets and any upsized reticulation assets. The revised and renamed ‘Connecting Asset Funding Standard’ applies new funding categories.
For all in-sequence development, we will repay, in full, all agreed amounts for developer-delivered infrastructure upon the transfer of asset ownership to Hunter Water. The staggered repayment arrangements will apply to out-of-sequence development.
The new 'Connecting Asset Funding Standard' will take effect from 1 July 2023. The CAF Standard details transitional arrangements for existing commercial agreements. A copy of the Standard is available here .
What are Developer Charges?
Developer charges are location-specific, upfront charges that will help to recover the costs of providing, upgrading and increasing infrastructure for new developments in our area of operations.
As the population continues to increase across our region, the costs of servicing new growth places upward pressure on customer bills. The reintroduction of developer charges for water and wastewater services will help recover the infrastructure costs attributable to urban growth.
The reintroduction of developer charges follows recommendations set out by the NSW Productivity Commission’s Infrastructure Contributions Review to address immediate and long-term challenges faced by state and local governments. These challenges include a growing and ageing population, rising infrastructure demand, increasing costs, housing undersupply, and environmental issues.
Apart from ensuring our existing customers do not face higher water bills as a result of new development, developer charges will also provide a price signal to the market to undertake the right amount of development, in the right places, at the right time while avoiding barriers to recycled water and infrastructure contestability.
How are Developer Charges calculated?
The Independent Pricing and Regulatory Tribunal (IPART) sets the methodology used to calculate the value of developer charges. Hunter Water must use the IPART methodology to determine the value of developer charges.
In short, developer charges reflect the capital cost attributable to the Development Servicing Plan (DSP) area, less the future operating position (surplus or deficit) expected from our charges to retail customers in the DSP area.
The developer charge is calculated on a per Equivalent Tenement (ET) basis. One ET is equal to the estimated demand of a typical residential standalone dwelling. Each DSP area includes a developer charge for water and wastewater separately.
More information about the developer charges methodology is available on IPARTs website. We've also developed a Guideline Document to provide greater clarity on how the charges are calculated for specific developments.
What is a DSP?
Development Servicing Plans (DSPs) cover water supply and wastewater developer charges for different areas serviced by Hunter Water.
Each DSP details the developer charges applicable to the respective water supply, water headworks, wastewater transportation, treatment or transfer system for that area.
In addition to developer charge calculations, each DSP contains information about the geographical area covered by the system, estimates of future capital expenditure and operating costs, demographic assumptions, and relevant planning information.
DSPs aim to provide appropriate cost signals to the marketplace, helping developers make location and investment decisions, and ensure the assets grouped together function properly in an operational sense.
IPART's 2018 developer charges determination requires Hunter Water to identify water and wastewater servicing areas and produce DSPs for each.
In developing the boundaries for DSP areas, we relied upon the existing water zones we use for operational purposes. For wastewater, we established a DSP for each standalone wastewater treatment catchment.
This produced 9 water DSPs and 20 wastewater DSPs across our area of operations.
What will it cost to develop in different areas?
Developer charges vary depending on the DSP area.
You can explore the developer charges for the different water and wastewater DSP areas using the interactive maps in the next section below.
Developer charges for water range* from:
- $1,000 to $5,000 per ET (across eight DSPs)
- $8,700 per ET (across one DSPs)
Developer charges for wastewater range* from:
- $0 to $5,000 per ET (across nine DSPs)
- $5,000 to $10,000 per ET (across six DSPs)
- $10,000 to $15,000 per ET (across three DSPs)
- $15,000 to $20,500 per ET (across two DSPs)↓
*based on full charges as at 30 August 2023 (charges are in 2022-23 dollars)
Use the interactive maps below to explore the Water and Wastewater DSPs and the associated Developer Charges across our area of operations
Explore our DSPs
Water Development Servicing Plans:
There are 9 Water DSPs across our area of operations
We aligned our water DSP areas with the water supply boundaries. This creates a natural relationship to the existing assets, new assets in the next decade and the growth that may benefit from such investments.
The dashboard below ↓ shows a map and list of each Water DSP area, including the Developer Charge and information for each area.
How to use the DSP dashboard:
► use the map to zoom into and view Water DSP areas across our area of operations ► enter the property address using the magnifying glass on the top right of the map to find the lot you are interested in ►alternatively, you can select the DSP you're interested in from the list in the middle ►once a DSP has been selected, you will find a link to the DSP information document* and a list of assets* in the DSP on the right hand panel (below the charge) * copies of all DSP documents are located in the 'FAQs and Resources' tab
Water Developer Charge - GIS Dashboard
Wastewater Development Servicing Plans:
There are 20 Wastewater DSPs across our area of operations
We aligned our wastewater DSP areas with the wastewater catchment boundaries. This creates a natural relationship to the existing assets, new assets in the next decade and the growth that may benefit from such investments.
The dashboard below ↓ shows a map and list of each Wastewater DSP area including the Developer Charge and information for each area
How to use the DSP dashboard:
► use the map to zoom into and view Wastewater DSP areas across our area of operations ► enter the property address using the magnifying glass on the top right of the map to find the lot you are interested in ►alternatively, you can select the DSP you're interested in from the list in the middle ►once a DSP has been selected, you will find a link to the DSP information document* and a list of assets* in the DSP on the right hand panel (below the charge) * copies of all DSP documents are located in the 'FAQs and Resources' tab
Wastewater Developer Charge - GIS Dashboard
FAQs
How will the reintroduction of developer charges benefit Hunter Water's customers?
Without developer charges, the additional costs of servicing new growth are recovered over the life of the asset through regulated charges paid by all Hunter Water customers.
The reintroduction of developer charges means we have a separate funding base for growth-related capital projects. By charging location-specific developer charges, we not only ensure our existing customers do not face higher water bills as a result of new development, but also encourage urban development in the areas with the lowest infrastructure costs.
We have modelled possible future customer bills with and without developer charges. Our analysis of the phased re-introduction of developer charges shows a bill saving for existing customers of about $20 per year from 2025.
What developments will incur a charge?
We will levy developer charges on new development that increases the net water consumed and sewage discharged to our network.
When are charges determined?
Upon receiving a development application for a Section 50 Compliance Certificate, we will investigate the impact that the proposed development is likely to have on our systems. At the same time we will determine the resulting developer charge.
When will charges be levied?
From 1 July 2023 developer charges will come into effect, however, the NSW Government has directed that developer charges will remain at 0% for financial year 2023-24, before a phased reintroduction at 25% in financial year 2024-25, 50% in financial year 2025-26, prior to full reintroduction from financial year 2026-27 onwards.
How were stakeholders consulted?
We invited feedback on our draft Development Servicing Plans (DSPs) during a public exhibition from Friday 28 April to Friday 7 July 2023. During this time we held three online information sessions to engage with interested parties on the proposed developer charge boundaries, administrative processes and a transition plan, and held five meetings with key industry bodies and local Councils.
We received 23 submissions during the public exhibition period. We’ve summarised the key themes that emerged in the feedback in the public exhibition summary report . We used this feedback to help finalise our developer charges model, which has now been registered with IPART.
Where can I get more information?
Hunter Water has developed a Fact Sheet which has further details on the reintroduction of developer charges including explanation of the methodology, the benefits of developer charges to our customers, and frequently asked questions. We have also developed a Guideline document to outline how to calculate developer charges for specific developments.
We're always here to help and answer any questions you have. If you can't find the answer to your question in our Fact Sheet, or want to know more, you can email us at: developer.charges@hunterwater.com.au
Resources
DSP and asset information documents: Water W.1-W.9
DSP Number | DSP Name | DSP Info Sheet | DSP Asset List | DSP Number | DSP Name | DSP Info Sheet | DSP Asset List |
|---|---|---|---|---|---|---|---|
W.1 | Newcastle and ELM | W.6 | Cessnock | ||||
W.2 | Nelson Bay | W.7 | Raymond Terrace/Medowie | ||||
W.3 | Maitland/Branxton | W.8 | Kings Hill | ||||
W.4 | South Wallsend and WLM | W.9 | Lemon Tree Passage | ||||
W.5 | Dungog and Chichester |
Registered Water DSPs and charges as at 30 August 2023 (in 2022-23 dollars)
DSP and asset information documents: Wastewater S.1-S.10
DSP Number | DSP Name | DSP Info Sheet | DSP Asset List | DSP Number | DSP Name | DSP Info Sheet | DSP Asset List |
|---|---|---|---|---|---|---|---|
S.1 | Belmont | S.6 | Clarence Town | ||||
S.2 | Boulder Bay | S.7 | Dora Creek | ||||
S.3 | Branxton | Asset List | S.8 | Dungog | |||
S.4 | Burwood Beach | S.9 | Edgeworth | ||||
S.5 | Cessnock | S.10 | Farley |
Registered Wastewater DSPs and charges as at 30 August 2023 (in 2022-23 dollars)
DSP and asset information documents: Wastewater S.11-S.20
DSP Number | DSP Name | DSP Info Sheet | DSP Asset List | DSP Number | DSP Name | DSP Info Sheet | DSP Asset List |
|---|---|---|---|---|---|---|---|
S.11 | Karuah | S.16 | Paxton | ||||
S.12 | Kearsley | S.17 | Raymond Terrace | ||||
S.13 | Kings Hill | S.18 | Shortland | ||||
S.14 | Kurri Kurri | S.19 | Tanilba Bay | ||||
S.15 | Morpeth | S.20 | Toronto |
Registered Wastewater DSPs and charges as at 30 August 2023 (in 2022-23 dollars)
