Melbourne’s water and energy security are under threat

In late December, Melburnians were warned that they could soon face severe water restrictions following the steepest annual decline in water storage levels since the Millennium Drought.

Melbourne’s water storages dropped from 86% to 75.1% in a single year—a fall of 239 billion litres—and authorities urged conservation measures and planning for new water sources, such as desalination and recycling.

IFM Investors’ chief economist, Alex Joiner, likened Melbourne’s water predicament to the housing market, where talk is always about a lack of supply rather than pressures from excessive population growth.