Document summary
Yarra Valley Water commissioned Trucost to estimate the value of water to Melbourne to help inform thinking around environmental valuations and options to deliver sustainable and economically-efficient water management in Melbourne. This White Paper highlights the results of the water valuation and explores the potential to use environmental economics to strengthen resource allocations and water management. It aims to provoke discussion among stakeholders in the water industry, regulators and researchers to develop approaches to integrate the total economic value of water into decision-making. It aims to inform collaboration to improve efficiency and allocate resources more effectively before stocks and flows of water deteriorate further. It raises questions around the use of environmental valuations to help deliver water infrastructure with environmental outcomes that maximise benefits to communities.