The Federal Government has committed $3.5 million in the 2021/2022 Federal Budget to the Barossa New Water project in South Australia, improving access to water infrastructure and partnering with the state to breathe new life to the Barossa and Eden Valley wine region. 

Estimates show additional water to the Barossa and Eden Valley could generate $292 million for the state’s economy, through securing existing vineyards, additional plantings and by creating 1,000 jobs.

Minister for Primary Industries and Regional Development, David Basham, said it was pleasing to see the Federal Government supporting such an important project – building on the State Government’s $1.5 million commitment to date.

“Barossa New Water aims to deliver safe, reliable, recycled water from the Bolivar Wastewater Treatment Plant to meet industry demand in the Barossa Valley and Eden Valley,” said Minister Basham.

“Securing funding from the Commonwealth is an important milestone for Barossa New Water and we will continue to work closely with key stakeholders as we push ahead with this project.

“The detailed business case will explore demand for water, economic viability, and supply and delivery of new, secure, climate-independent water infrastructure for the region.

“This project could be a game-changer for the region’s wine industry to drive economic growth and support thousands of jobs.

“Earlier this year, achieving a new water supply for the Barossa Valley region was identified as a Priority Initiative by Infrastructure Australia.

“It is one of a number of projects regarded by the State Government as being potentially transformative for South Australia – supporting regional growth and jobs.

“This project supports our Growth State Plan to create additional jobs and boost the economy by building the infrastructure that matters in regional areas, supporting both agriculture and tourism.”

Member for Schubert, Stephan Knoll, said having improved access to a secure water supply is a key concern for his local community.

“We know that the Barossa is one of South Australia’s premier wine regions, producing some of the highest value wine grapes in Australia, with an average value of $2,278/tonne in 2020, but a key constraint to agricultural productivity and growth in the region is the lack of secure water,” Mr Knoll said.

“There are 2,700 people employed in the wine and grape sector in the Barossa and the region accounts for nearly ten per cent of national wine sector jobs.

“Delivering a long-term water security solution will significantly boost productivity for the region’s agriculture sector – and importantly create local jobs.”

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