What’s happening?
Toowoomba Regional Council has lodged a submission to the Queensland Government’s Residential Activation Fund. It is seeking $150 million to bring forward the Southern Water Treatment Plant at Westbrook.
TRC Mayor Geoff McDonald said the project sits at the centre of Council’s long-term growth plans. He said it was one of the Region’s biggest chances to speed up housing supply at scale in regional Queensland.
“If supported through a RAF partnership, the Southern Water Treatment Plant would be delivered years earlier than currently programmed, enabling housing construction, private investment and job creation to commence sooner across southern and western Toowoomba,” he said.
Mayor McDonald said the plant would provide the trunk water infrastructure needed before new residential communities can be developed in Toowoomba’s southern and south-western growth fronts.
Why it matters?
The project is being pitched as far more than a water upgrade. Council says it would unlock housing, support private investment and improve long-term water security across a growing regional city.
Mayor McDonald said the plant would also ease pressure on the existing Mount Kynoch Water Treatment Plant.
“This will also allow for growth in the northern areas of Toowoomba and within existing urban areas by creating additional water supply and providing a second treatment option to support the Mount Kynoch water treatment plant,” he said.
Council said the project would strengthen water supply resilience and service redundancy. It would also provide surety for the Toowoomba Equestrian Centre as works begin for the 2032 Olympic and Paralympic Games.
Mayor McDonald said, “This is a once-in-a-generation opportunity to partner with the Queensland Government to unlock housing, jobs and economic growth in one of the State’s fastest growing regional cities.”
He added, “The Residential Activation Fund is about accelerating housing outcomes and this project does exactly that. A $150 million State contribution brings forward significant investment that unlocks billions of dollars in private development and supports thousands of jobs.”
“This is a smart infrastructure investment. It reduces pressure on the housing market, strengthens regional Queensland and delivers an outstanding return to the State.”
Local Impact
For Toowoomba, the proposal could open the door to new housing in the south and south-west sooner than planned. It could also support more supply in northern and existing urban areas by adding a second treatment option.
The local business sector has backed the submission. Toowoomba Chamber of Commerce CEO Tanaya Treadwell said, “This project is a catalyst for sustained regional economic growth.”
“Accelerating the Southern Water Treatment Plant will drive major construction activity, support local supply chains, and create the conditions for long term population and business growth across Toowoomba.”
The Housing Industry Association also said earlier that infrastructure delivery is critical for housing construction.
Housing Industry Association Executive Director of Queensland Mike Roberts said, “Bringing forward enabling infrastructure is critical to getting homes built and keeping construction pipelines moving.”
“Projects like the Southern Water Treatment Plant provide the certainty builders need to invest, employ local trades and deliver housing at scale. Early State investment through programs like the Residential Activation Fund helps turn planning into construction and jobs on the ground.”
By the Numbers
- The project is expected to support about 33,000 dwellings over the long term, with up to 8,700 homes enabled in the short term.
- Council estimates the plant could underpin about $20 billion in residential construction investment over the next 17 years.
- Independent economic analysis suggests the build could add about $134 million in Gross Value Added and support around 280 full-time equivalent jobs each year during construction.
Zoom In
Council says access to enabling infrastructure remains one of the main barriers to housing delivery. That argument was echoed by the Urban Development Institute of Australia Queensland.
Chief executive Kirsty Chessher-Brown said, “Access to enabling infrastructure is the single biggest factor holding back housing delivery in regional Queensland.”
“This is why the Institute advocated for the Residential Activation Fund, so that key infrastructure is delivered, unlocking the land needed to supply homes.”
The submission frames the Westbrook plant as essential groundwork. Without it, major housing growth in key parts of Toowoomba cannot move ahead at the same pace.
Zoom Out
The proposal fits into a wider push to lift housing supply across Queensland by funding enabling infrastructure earlier. In this case, Toowoomba is arguing that earlier State support would unlock private development, create jobs and strengthen the regional economy.
Mayor McDonald also thanked the Crisafulli Government for creating the Residential Activation Fund, for providing a significant funding pool and for giving councils the chance to apply.
What To Look For Next?
If funding is approved, the Southern Water Treatment Plant could move ahead earlier and bring forward housing, jobs and investment across Toowoomba.