The current water infrastructure limitations have historically forced Federation Council to restrict housing developments.
By nearly doubling the town's water storage capacity, this upgrade will serve as the primary mechanism for unlocking Howlong's economy.
The funding, including a $2 million co-contribution from Federation Council’s Water Fund, will deliver the Howlong Water Reservoir Replacement project.
It replaces the aging 3.7ML water reservoir with a brand-new, 7ML reservoir and adds an upgraded pump station at the Water Treatment Plant on Pearce Street.
Residents will see direct, tangible improvements as the project resolves poor water pressure issues experienced during peak times by boosting the township's water head pressure from 20 metres to approximately 25 metres.
The expanded capacity ensures full operational compliance with the Australian Drinking Water Guidelines for chlorine contact time.
Federation Council mayor, Cheryl Cook highlighted the profound impact this funding will have on the community’s resilience as a monumental win for Howlong and the broader Federation Council region.
She said the project would provide long-term planning certainty to support the projected demand for 1,500 new dwellings over the next 30 years.
“Water security is the foundation of any thriving community, and this grant funding allows us to replace a critical asset that was reaching the end of its life,” Cr Cook said.
“By increasing our local water storage to 7 megalitres and upgrading our pump station, we aren't just fixing infrastructure, we are removing limitations that have stalled growth in Howlong.”
Cr Cook said the project directly addressed community feedback from the structural concerns raised in planning papers to the low water pressure reported by residents.
“This project gives us the vital infrastructure we need to confidently unlock land for housing, welcome new families, and ensure major employers like Cool Off can double their production and secure local jobs,” she said.
Federation Council general manager, Adrian Butler thanked both governments for their substantial investment and to the Council staff who worked diligently to secure the funding.
"Securing a highly competitive grant of this scale requires an immense amount of rigorous planning, data modelling and strategic collaboration,” Mr Butler said.
“I want to sincerely thank the Federal and New South Wales Governments for recognising the vital need for this project, local member Justin Clancy for his support and strong advocacy, the Howlong Community Progress Association, and congratulate our council staff who put together a successful application.”
Following the completion of the concept design work, Council expects the formal Request for Tender (RFT) process to roll out smoothly, allowing construction contractors to mobilise on-site in early 2027.