Melbourne’s Annual Water Outlook – March quarterly update
19 March 2026
As at 1 March 2026, Melbourne’s Annual Water Outlook quarterly update shows storage levels are now at 69.6%, down 11.2% (approximately 203.8 billion litres) from March 2025, driven by prolonged hot, dry conditions, low-inflows and high household use over the last 12 months.
From 1 December 2025 to 1 March 2026 alone, storages declined by 5.6% or 102 billion litres, even with recent rainfall.
Over the past 24 months, Melbourne experienced some of the lowest rainfall and inflows on record, similar to the worst years of the Millennium Drought. Melbourne’s storages are now 24% (around 429 billion litres) lower than they were two years ago, due to a combination of very low rainfall, record-low inflows, and higher water use.
Household water use remains high at 166 litres per person per day, exceeding Target 150, which encourages consumption of no more than 150 litres per person per day.
While water restrictions are not currently expected, the Annual Water Outlook quarterly update highlights that if storages do decline further, driven by continued dry conditions and high water use, restrictions may be possible next summer. This will factor into the metropolitan water sectors’ advice to the Victorian Government on a 2026 desalinated water order.
Yarra Valley Water Managing Director, Natalie Foeng, speaking on behalf of Melbourne’s water corporations, said everyone can play a role in protecting our water for the future.
“We’re working together across Melbourne’s water sector to respond to a drier climate and ensure our water supplies remain secure, and we’re encouraging all Melburnians to protect water supplies too,” Ms Foeng said.
“Small, everyday actions at home, like taking four-minute showers and running full wash-loads, can help save thousands of litres every year. Together we can make every drop count and protect water for years to come.”
Melburnians are reminded to follow Victoria’s Permanent Water Saving Rules, which apply at all times:
Sprinklers and watering systems can only run between 6pm and 10am.
Hand-held hoses must be leak-free and fitted with a trigger nozzle.
Hard surfaces, such as driveways and decks, must not be hosed – use a broom instead.
Fountains and water features must recirculate water.
To further reduce household water use, the ‘Make Every Drop Count’ campaign encourages Melburnians to implement small changes at home to protect supplies. This includes brushing teeth with the tap off and running full dishwashers, using the half flush on toilets and mulching garden beds.
Melbourne’s Annual Water Outlook Updates are jointly prepared by Greater Western Water, Melbourne Water, South East Water and Yarra Valley Water, in partnership with the Victorian Government.
