Eyre Peninsula desalination plant delayed until mid-2027

SA Water has pushed back the expected delivery of drinking water from the Eyre Peninsula Desalination Plant to mid-2027, saying unusually hard granite has slowed underground boring. The six-month delay takes the project beyond its original end-of-2026 deadline.

The region’s 35,000 residents rely on the declining Uley South Basin for drinking water. Port Lincoln residents and nearby communities had previously been warned their clean drinking water could run out by 2026.

SA Water sustainable infrastructure general manager Peter Seltsikas said higher rainfall across the peninsula had lifted basin levels, leaving enough water to supply customers until the plant begins operating. The authority said customer access to water would not change.

Seltsikas said pipeline work was finished and the plant itself was largely complete, but tunnelling was holding up the start of supply. Preliminary work at Billy Lights Point coastal reserve began in February 2025.

The state-funded project, initially budgeted at A$330 million, is now expected to cost approximately A$470 million. The state government said it would detail the revised budget after contractual processes involving delivery partners were complete.

The government said changes to the Southern Basins Water Allocation Plan allowed SA Water to use the Uley South Basin and River Murray to meet demand. The authority’s annual groundwater allocation will fall to 3.5 gigalitres in 2027-28 as the plant starts operating. A government spokesperson said water restrictions were not expected.