Yorke Peninsula housing development stalled as SA Water says network lacks capacity

The development on a 28-hectare greenfield site at Abbot Drive, Kadina, was lodged in 2023. At the time, SA Water did not indicate any uncertainty about capacity, according to Wardle Real Estate Co agent Brenton Brind.

"In the township it was always a given, we've always been able to get water on any subdivision," Mr Brind said. "We've never had an issue like this before to my knowledge."

Correspondence seen by the ABC shows SA Water promised to notify the developer of connection requirements by February this year, but later wrote that it "underestimated the timeframe required to finalise the response." In May, an SA Water staff member said the agency was completing a "technical analysis … to better appreciate how future demand can be accommodated," and was "not yet in a position to confirm whether sufficient capacity exists within the current network to support the development."

SA Water has acknowledged the uncertainty does not provide the level of certainty sought but said it reflects the need for technically robust advice. The agency's current four-year funding cycle, set for re-evaluation in 2028, prioritises the Greater Adelaide Region in line with the state government's Housing Roadmap. It said there is currently "no funding capacity as part of the Housing Roadmap to invest in upgrading … networks outside of priority areas."

Mr Brind said even if money is allocated in 2028, construction and connection could push completion into the mid-2030s. In February, a coalition of South Australia's regional councils urged the state government to "reduce barriers to increasing housing supply in the regions," citing "limited enabling infrastructure."

Why This Matters

The stalling of a 340-home development highlights infrastructure bottlenecks that could worsen the state's housing crisis, particularly in regional areas where demand is rising.
The uncertainty around water connections may deter other developers from pursuing projects in regional South Australia, further constraining supply.
If no funding is allocated until 2028, projects could be delayed by a decade, leaving residents and businesses waiting for homes that are already planned.

Background

South Australia's Housing Roadmap aims to accelerate housing supply, but its funding has been focused on the greater Adelaide area. Regional councils have repeatedly flagged inadequate enabling infrastructure—such as water, sewerage, and power—as a barrier to development. SA Water's current regulatory funding cycle runs to 2028, and the agency has said it will incorporate population growth forecasts in the next cycle, but has no funds for regional network upgrades in the interim.

Key Perspectives

Developers and real estate agents: They argue that water connections have historically been routine and that SA Water did not flag any issues when the development was first lodged. The lack of a definitive timeline is preventing investment and home construction. SA Water: The agency says it must conduct thorough technical assessments before confirming capacity, and its current funding is tied to state government priorities that focus on Adelaide. It says the delay reflects the need for robust technical advice. Regional councils: A coalition of SA regional councils has called on the state government to reduce barriers to housing supply, specifically pointing to limited enabling infrastructure as a key obstacle.

What to Watch

SA Water's technical analysis outcome: whether it confirms capacity or requires augmentation, and any timeline offered.
The 2028 funding re-evaluation: whether regional infrastructure is included in the next cycle and how quickly upgrades could follow.
Any state government response to the coalition of regional councils' February plea for reduced barriers.

ZOTPAPER