Permanent water shortages bear down on Melbourne

Advertisement

Melbourne’s water storages have recorded their steepest annual decline since the Millennium Drought, driven by extreme dryness, record‑low inflows, and rising household demand.

Melbourne’s storages dropped from 86% to 75.1% in a single year—a fall of 239 billion litres.

Inflows from July 2024 to June 2025 were 36% below the 30‑year average, with January–June inflows being the lowest on record.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.