South West water assets to remain with Water Corp

Water Corporation will no longer hand over Dunsborough water and Busselton drainage assets to Busselton Water after the state government deemed the proposal too costly and without benefit.

Water Minister Dave Kelly said investigations by the Department of Treasury found it would have cost the state between $3 million and $12 million in the first three years to transfer ownership of the assets, and would also have required new legislation for it to be legal.

“Importantly, investigations also found it was unclear if the proposal would deliver improved pricing and security of supply for Dunsborough water users or improved drainage outcomes beyond those resulting from the Vasse Taskforce,” Mr Kelly said.

"This proposal is a very complex financial transaction and the advice from the Department of Water is that it would cost the government overall and not save money.

"In the current budget climate, even a small cost to the state budget needs to have compelling public benefit.

"The Department of Water has indicated that the transfer of ownership would have no likely benefits to customers."