Australia told to prepare for water crisis

updated 10:30 a.m. ET Aug. 14, 2007

CANBERRA, Australia - Nearly every Australian city will have to find new water supplies over the next decade as climate change and population growth stretch the nation's already limited water resources, according to a study released Tuesday.

The annual report by the Water Services Association of Australia found that after a decade of punishing drought, authorities in all of Australia's mainland capital cities will need to find new ways to provide water, such as desalination and recycling, in the next five to 10 years.

In its report to urban water utilities, the association said water prices will rise steadily in cities to pay for new infrastructure in the driest continent in the world after Antarctica.

New infrastructure could cost up to $25 billion over the next decade and likely would be paid for by higher charges to consumers, said Ross Young, the association's chief executive.

"The 10 years of below average rainfall and drought have been a wake-up call for urban Australia," Young told The Associated Press. "This will send a stronger price signal to consumers about conserving what is a very scarce resource."

The report found that in the fiscal year ending June 2007, rainfall in catchments serving towns and cities fell by as much as 80 percent below average.

"Experience over the last several summers indicates that ongoing harsh water restrictions will not be accepted by the community and the challenge is to develop reliable supplies of water for our growing cities in a sustainable manner," the report said.

The west coast city of Perth has become the first in Australia to build a large-scale desalination plant while recycled water will be piped into homes in the east coast city of Brisbane next year.

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