What’s Happening?
The Queensland Government is funding major water and road infrastructure across Toowoomba and the Lockyer Valley. These services must be ready before developers can build homes on residential land.
Through the Residential Activation Fund, the package will prepare land across Toowoomba’s southern growth areas and Gatton’s Woodchester Estate. It forms part of the government’s wider plan to increase housing supply across Queensland.
Why It Matters?
Before construction can begin, residential land needs water, sewage, stormwater, roads, electricity and other essential services.
The government says these projects will address infrastructure barriers that have delayed development. Greater housing supply could also improve rental availability and give buyers more choice.
Premier David Crisafulli said the investment supported the government’s commitment to provide more homes across Queensland.
“We made a commitment we’d do everything we could to deliver a place to call home for more Queenslanders and that’s what this is all about,” Premier Crisafulli said. “For too long in this State, the dream of home ownership has been a nightmare, but we’re making the home ownership dream a reality for more Queenslanders. This is a significant step in the right direction for Toowoomba and the Lockyer Valley and it’s part of our plan to build Queensland’s future.”
Local Impact
Toowoomba Regional Council will deliver the Southern Water Treatment Plant and a new reservoir. The project also includes a booster pump station and trunk water mains.
This network will service Westbrook, Drayton, Wellcamp, Mount Rascal, Kearneys Spring and Middle Ridge. These communities sit within Toowoomba’s southern and south-western growth corridors.
In Gatton, the Woodchester Estate project will deliver roadworks, gully crossings, stormwater infrastructure and electrical services.
Treasurer, Minister for Home Ownership and Toowoomba South MP David Janetzki linked the investment to the 2026-27 Queensland Budget.
“By investing in critical water infrastructure now, we’re creating the conditions for more homes, giving more young people the chance to become homeowners and build their future here in the Darling Downs,” Mr Janetzki said.
Condamine MP Pat Weir said providing water infrastructure would address a major barrier affecting growing communities.
“By delivering the critical water infrastructure first, the Crisafulli Government is removing one of the biggest barriers to building new homes across communities including Westbrook, Wellcamp and Drayton,” Mr Weir said. “After years of Labor failing to plan for growth, we’re getting on with the job of investing in the infrastructure that will support thousands of new homes and strengthen our regional communities for decades to come.”
Lockyer MP Jim McDonald said the Gatton project would support housing, employment and confidence in the region.
“The Crisafulli Government is investing in the infrastructure that unlocks housing, supports local jobs and gives families confidence that our region is planning for the future,” Mr McDonald said.
Toowoomba North MP Trevor Watts said reliable water services would help the city manage its continuing growth.
“This investment will help unlock thousands of new homes while ensuring families have the reliable water infrastructure they need as our region continues to grow,” Mr Watts said.
Toowoomba Regional Council Mayor Geoff McDonald described the Southern Water Treatment Plant as a major investment in the region’s future.
“This funding is about much more than water infrastructure. It’s about creating the foundations for new communities, new neighbourhoods, new jobs and new opportunities for generations of Queenslanders,” Mayor McDonald said. “The Toowoomba Region is one of Queensland’s great regional success stories. People are choosing to live here, businesses are choosing to invest here, and families are choosing to build their futures here. The Southern Water Treatment Plant is exactly that type of region-shaping infrastructure. It will unlock the capacity needed to support up to 33,000 future homes across our Region and help ensure Toowoomba remains one of Queensland’s most liveable and prosperous regional centres.”
By the Numbers
- The Queensland Government is providing $155 million to support almost 19,800 residential lots across Toowoomba and the Lockyer Valley.
- Toowoomba will receive $145 million, the largest single grant in round two. The project should support at least 17,000 lots.
- Gatton will receive $9.8 million for Woodchester Estate infrastructure, supporting more than 2,800 residential lots.
Zoom In
With the latest allocations included, government figures place statewide housing capacity above 140,000 homes through the Residential Activation Fund.
The program passed 100,000 supported homes within 18 months. As it approached that milestone, the government doubled round-two funding to $1 billion.
At least half of this round will fund projects in rural and regional Queensland. The government describes the fund as an award-winning part of its housing policy.
The government is also combining infrastructure investment with support for first-home buyers.
Joint federal and state funding exceeding $2 billion will support 51,000 homes. This includes 20,000 homes intended for first-home buyers.
Underutilised state land will also be released for housing through the Land Activation Program.
The $30,000 First Home Owner Grant remains funded and locked into the Budget. Stamp duty has also been removed from new home builds.
The Boost to Buy shared equity scheme will offer up to 2,000 places. Half of those places will be reserved for regional Queenslanders.
The government is also lifting subletting restrictions for buyers receiving grants and concessions. It says this measure could improve rental availability.
Zoom Out
The government aims to deliver one million Queensland homes by 2044. This includes a record pipeline of 53,500 social and community homes.
Deputy Premier and Infrastructure Minister Jarrod Bleijie said partnerships could remove barriers affecting residential development. He also blamed the former Labor government for the housing shortage.
“After a decade of decline under Labor, we’re getting on with the job of delivering the infrastructure needed to unlock new housing opportunities across the State,” the Deputy Premier said. “The Crisafulli Government’s award-winning Residential Activation Fund is pulling every lever to increase housing supply, because you can’t build homes without the roads, water and sewerage infrastructure to support them. These projects will unlock almost 20,000 more homes for Queenslanders while supporting growing communities in Toowoomba and the Lockyer Valley. The Residential Activation Fund has now unlocked more than 100,000 homes across Queensland, demonstrating exactly what’s possible when government partners with councils, landowners and developers to remove barriers to housing.”
“In less than 18 months, the Crisafulli Government has unlocked more than 100,000 new places to call home after Labor’s decade of decline, which saw housing lot approvals slump by 29 per cent, leading to record-low rental vacancy rates, a skyrocketing social housing waitlist and the lowest home ownership rate in the country. Availability equals affordability and by ensuring supply is unlocked, while also delivering a record number of social and affordable homes and support for first homebuyers, we’re delivering a place to call home for more Queenslanders, and the fresh start we promised them.”
What To Look For Next?
Work on the water network and Woodchester Estate upgrades will influence when serviced residential land becomes available.
Future updates may provide construction milestones and clearer timing for development across both areas. Further funding announcements could also identify more regional projects under round two.
Once the infrastructure is complete, councils and developers will have greater capacity to bring planned housing forward.
