The Four Water Cycles for Large-scale investment in Australia

Droughts remind us that water is critical, yet we only act when it’s nearly gone. When the taps start running dry, funding floods in. But by then, it’s often too little, too late.

On the flip side, floods and natural disasters bring another rush of money. This occurs through emergency relief, recovery funds, and resilience programs.

The common thread? Investment only happens in crisis.

Smart Strategy:

• Be proactive, not reactive. Secure feasibility funding in advance so when money does arrive, your project is first in line.
• Frame your funding case around resilience. Align with disaster recovery and climate adaptation priorities.

Make sure funding bodies already know your project exists before a crisis forces their hand.

Water utilities operate under a unique pricing model. Every few years, they submit bids for price increases (never decreases) to cover future operational and capital costs.

In most states, this pricing is supposed to be independently regulated, but in reality, it’s a political balancing act. Governments cap price rises to keep voters happy. Meanwhile:

• Aging infrastructure crumbles.
• Water demand rises.
• Climate variability strains supply.
• Projects are deferred, waiting for the funding flood of Cycle 1.

Smart Strategy:

• Defend your business cases rigorously. Clearly articulate the consequences of underinvestment when seeking price increases.
• If your prices are capped, don’t just pause projects, seek alternative funding. Secure government grants for both approved and unapproved projects.
• Frame your funding ask around long-term affordability. Show how investing now prevents future price hikes that burden customers later.

There are two political funding cycles. One at the federal level and one at the state/territory level. Both follow a predictable four-year election rhythm:

• Election Year: A wave of funding announcements. Governments need good news stories, so they invest in “shovel-ready” projects that make them look good.
• Post-Election Year: A funding drought. Money slows as the new government reassesses priorities.
• Mid-Term: Feasibility and planning funds emerge, as governments test the waters for future investments.
• Pre-Election Year: Major projects are banked for the campaign trail. If you’re not in the queue by now, you’ve missed the boat.

Smart businesses understand these waves and position themselves accordingly.

Smart Strategy:

• Election tracking is funding tracking. Know which party is in power, their funding focus, and their marginal seats.
• Pre-position your projects. Secure smaller feasibility grants before election years, so you’re ready when the big money flows.
• Know who holds the purse strings. Is funding flowing from federal or state levels? Target the right level of government for your ask.

If you want the best shot at funding, three things matter:

1. Be in a marginal seat or have an independent MP championing your cause.
2. Play state and federal governments against each other. A 50/50 funding split often secures commitments from both sides.
3. Have a strong business case that supports their policies and is worthy of a ribbon cutting event.

Governments reward key electorates, especially leading up to an election. If your project has bipartisan appeal or aligns with major funding priorities, you’ve hit the jackpot.

Smart Strategy:

• Map the political landscape. Know which electorate and policies you’re targeting and where funding is likely to flow.
• Tie your project to both state and federal priorities. The bigger the impact, the harder it is to ignore.
• Make it a partnership. Align local government, utilities, and private sector players to strengthen your case across both sides of politics and state borders.