Derwent Hobart Master Plan

Current

About the region

The Derwent Hobart region balances Tasmania’s most densely populated city with wilderness areas, farming communities, and food, wine and eco-tourism destinations. Key centres include the City of Hobart; Derwent Valley towns like New Norfork; Coal River Valley communities including Richmond; and Pitt Water estuary towns like Sorell.

Current services

The region has 4 water and 25 sewerage systems plus recycled water schemes for residents, businesses, and farms. Greater Hobart’s flexible, interconnected system allows water transfers during high demand or maintenance. Bryn Estyn supplies 60–80% of drinking water. Recycled schemes serve agriculture and industry. Aging infrastructure and underinvestment drive upgrades like Rosny’s UV disinfection to improve water quality in the Derwent River.

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Growth Areas

Population in the Derwent Hobart region is expected to grow steadily over 50 years, with up to 55,400 lots identified for potential development. Growth will focus on greenfield areas like Bagdad, Brighton, Clarence, and Sorell, and infill in Glenorchy, Kingborough, and inner Hobart. Higher-density housing and industrial land conversions may occur. TasWater will monitor trends and adapt its Master Plan to meet changing needs.

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Case Study: Glenorchy works enhance the local lifestyle

Water infrastructure upgrades in and around Glenorchy in Hobart’s north are boosting residents’ quality of life in very different ways. In partnership with Glenorchy City Council and community members, TasWater redeveloped Tolosa Park Dam in 2024 to create a family-friendly parkland. Major earthworks by local contractor Gradco removed most of the 20m high dam wall and sculpted the area into a usable recreation space. A chain of wetland ponds was created, as well as level walking tracks and a viewing platform at the dam. Less visible but no less important, TasWater is upgrading 11km of ageing water mains in Berriedale, Claremont, Moonah and Glenorchy. This program targets sections of pipeline that have been prone to frequent breaks and bursts. By replacing the vulnerable sections, TasWater is reducing the risk of unexpected outages and improving water pressure and quality for thousands of residents. The program also supports growth in the Glenorchy area by ensuring a reliable, consistent water supply for years to come.

The following year, a stunning mural on the Tolosa Reservoir’s two storage tanks was completed by local artist Harrison Bowe with Vibrance Projects.
This artwork, selected by community vote, features Mount Gould and the Styx River, illustrating the journey of water through Tasmania’s landscape

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Derwent Hobart region key statistics

Forecast

The big issues

In developing our Master Plans, we have has considered challenges that our state will face in future, as well as ones that are unique to the Derwent Hobart region. We also thought about the flip side – what opportunities are there for us to better support local people, our environment, cultural heritage and the economy?

Uncertain development timing, making infrastructure planning complex
Variable water quality
Opportunity to connect and rationalise infrastructure
Infrastructure approaching capacity and ageing
High levels of stormwater getting into our sewers, causing overflows
High risk discharges from some sewage treatment plants
Opportunity to produce more recycled water

Challenges and opportunities

Climate change

Climate change in Tasmania is likely to bring warmer temperatures, rising sea levels, and more extreme weather, impacting water supply, quality, and demand. These changes threaten water treatment and sewerage infrastructure, potentially requiring new solutions and adaptations.
Water security

Our drinking water comes from dams, rivers, and creeks, including Kunanyi / Mount Wellington, before treatment and delivery. Many raw water sources already experience low flows, and licensed allocations can’t meet growing demand. Drier conditions could worsen this, making unrestricted supply harder. TasWater’s Water Security Strategy guides long-term management, aiming to avoid restrictions and promote water conservation.
Keeping up with growth

If population grows as expected, existing pipes, pumps, reservoirs, and treatment plants may lack capacity. Many assets are aging and need costly upgrades or replacement, prioritised by development timing, community benefit, and compliance. Some areas may require new water and sewerage connections to support growth, address climate impacts, or improve reliability. Service introductions follow policy, requiring community support and cost recovery.
Water where it belongs

About 21.5% of water produced in the Derwent Hobart region is lost due to leaks, theft, metering errors, or operational use. Efforts are underway to cut these losses and reduce stormwater infiltration into sewerage systems, aiming to delay costly upgrades and extend infrastructure lifespan.
Achieving compliance

TasWater must meet strict health and environmental standards for water quality and discharge. Aging infrastructure and past underinvestment mean some assets fall short of compliance, but progress is underway. In the Derwent Hobart region, cathodic protection was added to the bulk water pipeline between New Norfolk and the Domain to prevent corrosion and extend its life, supporting reliability and long-term sustainability.

Case Study: Sewer transformation for Hobart

In TasWater’s largest project to date, sewerage systems in Hobart are undergoing a major transformation to support growth and improve environmental outcomes. This ambitious project involves upgrading the existing sewage treatment plant at Selfs Point, and decommissioning the ageing plant at Macquarie Point. There will also be a new 4.3km pipeline from Macquarie Point to Selfs Point and a new pump station at Macquarie Point. Once the works are completed, the existing Macquarie Point Sewage Treatment Plant will be removed from service.

The Selfs Point Sewer Transformation Project benefits Hobart residents, the environment and the state's economy by
Reducing nutrients entering the Derwent River by 132 tonnes every year
Unlocking the capacity for 8,000 new homes right away, and a possible 20,000 more in the future
Increasing sewage treatment capacity in Hobart to 25 Ml per day
Creating thousands of jobs for Tasmanians - Boosting economic activity in the state by more than $1 billion.
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Future

Our 50-year vision for the region

After looking at a range of options to guide our long-term investment in water and sewerage infrastructure, our preferred approach balances climate resilience, water security, customer expectations, environmental and health compliance, and cost. Download the PDF for more details.

We believe our approach:
Tackles the most urgent issues right away.
Delays major spending until later, helping manage budgets and adapt to future changes.
Reduces the need for, and number of, complex projects like new dams, treatment plants and long pipelines.
Has a lower long-term cost (net present value) and development cost (capital cost) when compared with other options considered.