As Daylesford residents welcome the easing of water restrictions, nearby communities in the Forest Hill supply zone are facing fresh challenges with water security.
Extended dry weather has put pressure on the Forest Hill water supply system, underlining the importance of a recently announced feasibility study into connecting six Hepburn Shire towns to the Ballarat water network.
Central Highlands Water (CHW) has advised customers in Allendale, Broomfield, Kingston, Newlyn, Smeaton and Springmount that Goulburn-Murray Water has set an initial 50% groundwater allocation for the Newlyn Zone in the 2025–26 water season. The reduced allocation reflects extremely low groundwater levels in the Loddon Highlands Water Supply Protection Area, which supplies the Forest Hill system.
Persistent dry conditions have lowered soil moisture and reduced the recharge of underground aquifers, limiting how much groundwater can be sustainably extracted for community use.
GMW is responsible for managing groundwater allocations in this area based on the groundwater levels at key state observation bores, as set out in its Loddon Highlands Groundwater Management Plan. CHW holds a ground water extraction licence and uses this resource to supply and operate the local Forest Hill water supply system.
The current allocation as of mid-September reflects groundwater conditions at the start of the 2025–26 water season. CHW will continue to monitor this situation closely to ensure customers are kept informed of any future changes to the allocations and provide updates on the potential need for water restrictions to be implemented in the coming months.
CHW Managing Director Jeff Haydon said the utility was working to balance local needs with long-term supply security. “We understand the importance of water security for our communities, and we remain committed to ensuring the local supply is managed responsibly in response to the current allocation due to the extremely low groundwater levels,” he said.
Mr Haydon added that residents should continue to be mindful of their water use. “CHW is monitoring this situation closely, and we thank our customers for their continued cooperation. We encourage everyone to use water efficiently as dry conditions persist across the region.”
The announcement follows CHW’s announcement of a $600,000 project to investigate the feasibility of connection the Forest Hill towns to the Ballarat water supply. That study, jointly funded by the Federal and State Governments, will consider the social, economic, environmental and cultural implications of the connection.
Together, the allocation cut and the feasibility study highlight the challenges of securing a reliable, climate-resilient water supply for Forest Hill communities.
