[2025] VCAT 300
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-05-09
Original judgment source is linked above.
Section 77 Planning and Environment Act 1987 (Vic); Hume Planning Scheme; Urban Growth Zone; Environmental Significance Overlay; Subdivision; Protection of Greenvale Reservoir water quality.
Subdivision Masterplan, Masterplan Revisions, Design Response, Environmental, Public Infrastructure Plan
B Chessell SC and G Lake, counsel, instructed by Best Hooper Lawyers. Evidence was called from:
B King, town planner (Days 1 & 2), H Valentine, town planner (Day 3), B Micallef, town planner (Day 4) & M Williams, town planner (Day 5)
L Hicks, counsel, instructed by J Liebetrau and L Graystone, lawyers, Melbourne Water Corporation. Evidence was called from:
Subdivision, bulk earthworks, construction of bicycle paths and trails, removal of dams and water bodies and creation of reserves.
Application under section 77 of the Planning and Environment Act 1987 (Vic) - to review the refusal to grant a permit.
Urban Growth Zone, Schedule 12, Craigieburn West Precinct Structure Plan ('UGZ12'). Applied zone is General Residential Zone ('GRZ')
Environmental Significance Overlay - Schedule 9, Greenvale Reservoir Catchment Protection ('ESO9')
Infrastructure Contributions Overlay - Schedule 3, Craigieburn West Infrastructure Contributions Plan, November 2021
Clause 37.07-11 (construction of bulk earthworks, and the removal of dams, reservoirs and other water bodies on land in UGZ12)
Clause 42.02-1 (subdivision of land and the construction of bicycle paths and trails on land in ESO9)
Clauses 02, 11, 12, 14, 15, 16, 37.07, 42.02, 53.18, 56 and 65
The subject land is a large landholding of some 68.51 hectares, located at the eastern termination of Dunhelen Lane in Craigieburn. Although historically developed and used as a convention centre, it is largely vacant with the constituent buildings having been demolished in recent times. The land supports dams, a former wastewater treatment pond and remnants of the former road circulation network. There are scattered trees and the property is used for grazing purposes.
WHAT IS THE RELEVANT PHYSICAL CONTEXT OF THE SUBJECT LAND?
UGZ
A permit granted to subdivide land or construct a building or construct and carry out works, or bulk earthworks, except as it relates to the delivery of the reservoir protection works, on land in the incorporated Greenvale North Part 2 Precinct Structure Plan, must include the following condition:
Prior to any development of land or the certification of a plan of subdivision of land within the PSP (except as it relates to the delivery of the reservoir protection works), the reservoir protection works as set out in the Greenvale North Part 2 Precinct Structure Plan, must be designed and constructed by Melbourne Water.
PSP
R24 The reservoir protection works for the Greenvale Reservoir must be completed by Melbourne Water prior to the commencement of any works (construction or earthworks) on the land. Melbourne Water will not consider any interim or out-of-sequence works or development within the Yuroke Creek DSS catchment.
Protect reservoirs, water mains and local storage facilities from potential contamination.
Ensure that land use activities potentially discharging contaminated runoff or wastes to waterways are sited and managed to minimise such discharges and to protect the quality of surface water and groundwater resources, rivers, streams, wetlands, estuaries and marine environments.
Discourage incompatible land use activities in areas subject to flooding, severe soil degradation, groundwater salinity or geotechnical hazards where the land cannot be sustainably managed to ensure minimum impact on downstream water quality or flow volumes.
Prevent the establishment of incompatible land uses in aquifer recharge or saline discharge areas and in potable water catchments.
Ensure that the siting, design, operation and rehabilitation of landfills avoids impacts on groundwater and surface water.
Avoid detrimental impacts on groundwater resources and minimise risk of harm to human health and the environment from proposed land use or development.
Environmental Significance Overlay - Schedule 9 (ESO9)
The amendment is required to ensure that land use change and increased urban development within the catchment protection area does not prejudice the water quality of the Greenvale Reservoir and increase the risk of contamination from surface stormwater runoff.
...
As a result of recent urban development within the catchment, Melbourne Water Corporation has required developers to construct temporary bunds within the catchment, with the purpose of protecting the Greenvale Reservoir from run-off. It is anticipated that these temporary bunds will remain in place until such a time that permanent protection measures are implemented to protect the Greenvale Reservoir.
...
In 2008, Melbourne Water Corporation prepared the "Greenvale Reservoir Catchment: Drinking Water Quality Risk Management Plan" as part of conforming to the requirements for Water Storage Managers in Victoria under the Safe Drinking Water Act 2003 (SDWA) and Safe Drinking Water Regulations 2005 (SDWR). One of the key issues emerging from the risk assessment was that urban development cannot take place in the catchment unless highly reliable protection of the Greenvale Reservoir is implemented. Another key issue was that the net effect of any development in the catchment needs to maintain or reduce the level of risk, and that risks to the reservoir should not be allowed to incrementally increase.
The Greenvale Reservoir is a water storage and distribution facility that supplies Melbourne's north-western suburbs with clean drinking water. Greenvale Reservoir is an off-stream storage facility that receives water via a pipeline from Silvan Reservoir and then directly supplies the water to customers. The Greenvale Reservoir Protection Area, which surrounds the Greenvale Reservoir drains towards the Reservoir however, there is no water harvesting from the catchment.
The Greenvale Reservoir was originally constructed in the 1970's, at which time the catchment consisted largely of undeveloped farmland. At present the Greenvale Reservoir Protection Area contains a mix of urban, residential, farming, tourist accommodation and public land uses. Surface stormwater run-off from urban development is an established source of contaminant that may be significantly hazardous to the health and quality of drinking water.
Melbourne Water, as the water storage manager, has an obligation to protect Melbourne's water supply from a range of potential contaminants. This includes ensuring that land use intensity and increased urban development does not lead to a decline in water quality and contamination of the Greenvale Reservoir through stormwater runoff.
The protection of the Greenvale Reservoir is essential to the health of all communities that rely on the Greenvale Reservoir for drinking water. Any infrastructure built to protect the Reservoir (including a bund) also requires protection in order to preserve its function as a Reservoir protection mechanism.
In addition to Melbourne Water's role as the water storage manager, it is also the regional drainage and floodplain authority with responsibility for ensuring urban development achieves appropriate standards of flood protection and waterway health is protected.
To protect the Reservoir from impacts of surrounding development, particularly where new development has the potential to increase surface storm water runoff or the potential to reduce the quality of storm water runoff;
To ensure the cumulative effect of development in the Greenvale Reservoir Protection Area maintains or reduces the level of risk to the quality of water supplied from Greenvale Reservoir;
To ensure development and land use is consistent with the Greenvale Reservoir Catchment: Drinking Water Quality Risk Management Plan (March 2008);
To protect the water quality of the Greenvale Reservoir from surface storm water runoff in a 1,000,000 AEP storm event;
To ensure that development is compatible with the protection of the Greenvale Reservoir;
To ensure any Reservoir protection mechanisms (including a bund) are protected from erosion and inappropriate development; and
To ensure co-ordinated urban development in the catchment area, which provides for the integration of protection measures for the Greenvale Reservoir.
An application must be accompanied by:
A Catchment Protection Plan to the satisfaction of Melbourne Water which includes as appropriate:
Development within the area subject to the Yuroke DSS[4] is reliant on the provision of protection assets outside of the control of the PSP.
To facilitate safe, resilient and water sensitive urban environments in Craigieburn West that respond to climate change, bushfire management, drainage outcomes and the specific protection requirements relevant to the Greenvale Reservoir Drinking Water Catchment.
Greenvale Reservoir Catchment: Drinking Water Quality Risk Management Plan, Summary Report: Maintaining and Improving the Protection of Greenvale Reservoir
The risk of bund failure was not scored because it was considered so unlikely, i.e. no more likely than failure of the Greenvale Dam itself. Such an event would be a major disaster and outside the scope of a conventional drinking water risk assessment process. Responses to major disasters are handled at the regional level by state and local agencies.
Risks are allocated to those best placed to manage them. During construction, for example, it is simpler for the developer to install sewerage and recycled water reticulation systems and stormwater controls. Therefore, installation of preventive measures is allocated to developers. Similarly, once installed, and the developer moves on, the institutional entities with special skills and authority to manage the sewerage, recycled water and dams move in to provide long-term maintenance of the assets. The Greenvale water storage manager is especially equipped to maintain dams and bund systems, whilst the sewerage license holder is especially equipped to manage and maintain sewerage systems and recycled water quality and reticulation. Furthermore, the sewerage license holder will take on responsibility for water recycling rather than leaving it to on-site entities. the sewerage license holder is especially equipped and skilled to undertake such services.
Risks are best managed by those that wear the adverse consequences should risks become impacts. An important benefit of the recommended strategy for control of risks in this situation is that the major preventive measures (sewers, catch drains and bunds) will be managed directly by those that will wear the consequences should the preventive controls fail. The sewerage license holder and the Greenvale water storage manager will directly wear major consequences should their water supply become contaminated. Therefore, these water utilities have an ongoing vested interest in maintaining the controls that protect water quality making it more likely that they can be relied upon to do so.
Preventative measure(s) required to control hazards to reduce risks to at or below current and tolerable levels
THE ROLE OF GREENVALE RESERVOIR IN MELBOURNE'S DRINKING WATER SUPPLY NEWORK
1.3. Historical context
The Greenvale water storage manager has identified that the Greenvale Reservoir was constructed in the early 1970s to provide more reliable water supplies for Melbourne's north and west. The reservoir was designed to be supplied with water harvested from Melbourne's forested catchments, so there is limited downstream treatment (chlorination only) before direct supply to customers. The catchment was largely undeveloped arid farming land (apart from a largely unused Department of Defence site). The catchment was protected from development by a pre-1998 planning scheme coupled with provisions under the Melbourne Metropolitan Board of Works Act. A concrete/earthen drainage system was constructed to be capable of withstanding storms with an Annual Exceedance [sic] Probability (AEP) less than 1:100. Therefore, there is no intentional water harvesting from the catchment.
**_DETAILS OF EXISTING AND PROPOSED PROTECTIVE MEASURES
DOES THE PROPOSAL INCREASE THE LEVEL OF RISK TO THE WATER QUALITY OF GREENVALE RESERVOIR?
Will the interim bund be geotechnically stable?
(a) requires water suppliers and water storage managers to prepare and implement plans to manage risks in relation to drinking water and some types of non-potable water; and
(b) provides for the auditing of those plans by approved auditors; and
(c) requires water suppliers to ensure that the drinking water they supply meets quality standards specified by the regulations; and
(d) requires water suppliers to disclose to the public information concerning the quality of drinking water; and
(e) provides for the variation, after community consultation, of water quality standards that relate only to aesthetic factors; and
(f) requires the reporting of known or suspected contamination of drinking water to the Secretary to the Department of Health; and
(g) empowers the Secretary to enforce this Act
Will contaminated groundwater reach the Reservoir?
MELBOURNE WATER'S STATEMENT OF GROUNDS IN RESPONSE TO THE AMENDED PLANS**
Development with a partial interim bund results in a residual risk with:
APPLICANT'S RESPONSE TO THE ESO9 APPLICATION REQUIREMENT FOR A CATCHMENT PROTECTION PLAN**
A site plan identifying the proposed use and development of the land
Amended plans prepared by Taylors - see TB3, pages 55-60.
A plan of the drainage system showing what protective measures are to be employed to protect the Greenvale Reservoir from any contamination resulting from effluent disposal,
stormwater runoff and other off site discharges. The plan must outline details of pre-application discussions which may have occurred with Melbourne Water regarding the design and construction of drainage systems and protective measures. The plan must also show flood levels associated with the 1 in 100 and 1 in 1,000,000 AEP storm event, proposed retarding basins, lakes, wetlands, dams, water storage, watercourses, drainage lines and effluent disposal associated with the development.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
Construction plans for the drainage systems to be employed, prepared in consultation with Melbourne Water.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
How the proposed subdivision, development and use of the land responds to the current approved version of the Melbourne Water Greenvale Reservoir Catchment: Drinking Water Quality Risk Management Plan (March 2008)
Town Planning Report (Original application material) - see TB3, pages 287-320.
Engineering services report (Original application material) - see TB3, pages 352-386.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
Flood Assessment prepared by Venant (amended plans material) - see TB3, pages 116-146.
Expert evidence statement of Mark Jempson - see TB1, pages 1042-1102.
Expert evidence statement of David Glover - see TB1, pages 826-966.
Expert evidence statement of Lyn Denison - see TB1, pages 1158-1177.
Plans and details outlining proposed sewerage reticulation and required drainage control mechanisms.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
Engineering Services report prepared by Arcadis - see TB3, pages 352-386.
Updated Engineering Services report prepared by Arcadis (section 50 amendment material) - see TB3, pages 1577-1612.
Plans and details for the design, establishment, ongoing maintenance and possible transfer to Melbourne Water of the land upon which any proposed reservoir protection mechanisms are located.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
Applicant's proposed permit conditions - see pages 642-663.
Plans of subdivision which identify overland flow paths associated with the 1 in 100 and 1 in 1,000,000 AEP storm event by way of a waterway management easement in favour of Melbourne Water to the extent required by Melbourne Water to ensure the flow paths are not unreasonably obstructed.
Amended plans prepared by Taylors - see TB3, pages 55-60.
Stormwater Management Strategy prepared by Alluvium (original application material) - see TB3, pages 1150-1201.
Amended Stormwater Management Strategy prepared by Alluvium (section 50 Amendment material) - see pages TB3, 1613-1653.
Surface/Storm Water Management Strategy prepared by Alluvium dated 29 April 2024 (Amended Plans material) - see pages TB3, 158-210.
Expert evidence statement of Jonathon McLean - see TB1, pages 967-1038.
downstream of Greenvale Reservoir attributable to any proposed reservoir protection measures.
Flood Assessment prepared by Venant (amended plans material) - see TB3, pages 116-146.
Expert evidence statement of Mark Jempson - see TB1, pages 1042-1102.
Memorandum prepared by Mark Jempson in respect to climate change assumptions (circulated during the course of the hearing).
A plan for the staging of the reservoir protective measures.
Amended plans prepared by Taylors - see TB3, pages 56-58.
[1] The submissions and evidence of the parties, any supporting exhibits given at the hearing and the statements of grounds filed have all been considered in the determination of the proceeding. In accordance with the practice of the Tribunal, not all of this material will be cited or referred to in these reasons.
[2] Section 61(2) of the PE Act provides that the responsible authority must decide to refuse to grant a permit if a relevant determining referral authority objects to the grant of the permit.
[3] The balance of the land is described as 'Future Stage 14'.
[5] Figure 18, Surface/stormwater management strategy 20 Dunhelen Lane, Craigieburn Revision C dated 29 April 2024, Alluvium Consulting Australia Pty Ltd.
[7] Venant Solutions concept design for flood management dated 5 June 2024 Map 3.
[8] Figure 18, Surface / stormwater management strategy 20 Dunhelen Lane, Craigieburn Revision C dated 29 April 2024, Alluvium Consulting Australia Pty Ltd.
[9] Venant Solutions document L.M00490.001 dated 18 October 2024 and Venant Solutions document L.M00490.001.docx dated 21 October 2024.
[10] Surface / stormwater management strategy 20 Dunhelen Lane, Craigieburn Revision C dated 29 April 2024, Alluvium Consulting Australia Pty Ltd.
[11] VCAT Reference P1068/2023 - Permit Application No. P24767 20 Dunhelen Lane, Craigieburn - Concept Design for Flood Management dated 5 June 2024, Venant Solutions Pty Ltd.
HBL Vic Pty Ltd
Hume CC [2025] VCAT 300