MORNINGTON Peninsula Shire councillors have endorsed a developer stormwater fund as a permanent initiative, aiming to improve stormwater management and fund Water Sensitive Urban Design (WSUD) projects across the region.
The decision, made at the council’s 17 March meeting, also saw councillors support a $60,000 grant application to the state government’s Integrated Water Management Grant program for 2025–2028.
If successful, the grant would fund detailed design work for priority WSUD projects at Olympic Park Recreation Reserve and Murrowong Reserve in Rosebud, and Dromana Parade Reserve in Safety Beach.
According to a council report, urban development increases impervious surfaces, which generate higher volumes of stormwater runoff and pollutant loads that can negatively impact waterways, coastal environments, and public infrastructure.
All Victorian planning schemes require stormwater from urban development to be managed in an integrated way to mitigate environmental, property, and public safety impacts, while also delivering amenity, cooling, and habitat benefits.
A Stormwater In-Lieu Contribution Scheme, first trialled by the shire in July 2022 for a period of two years, was introduced to replace a Melbourne Water-managed program that would have seen local developer contributions spent in other municipalities.
With a contribution rate of $29 per square metre of impervious area, “the scheme provides an optional mechanism for developers to meet best practice stormwater management requirements where best practice on-site treatment is not feasible, while ensuring contributions are reinvested directly into WSUD projects within the Mornington Peninsula,” the report said.
Cr Patrick Binyon said the scheme provided council with a strong planning foundation.
“It’s a master plan and provides council with a solid base for the implementation of priority stormwater projects. It identifies, quantifies and then ranks from medium to large- scale water sensitive urban design treatment or stormwater harvesting projects across the shire,” he said.
“The key project objectives include cost-effective investment, improving stormwater quality, reducing risks, and maximising opportunities… it secures the contribution that would otherwise be spent out of the shire.”
Cr Kate Roper also emphasised the local benefits, noting drainage would continue to be an issue on the peninsula, especially in some bayside areas.
“This scheme has been very successful… the funding stays here and is going to be spent here,” she said.
“We’ve got a lot of drainage problems, and climate change is adding to our challenges. This trial has had marked acceptance, minimal complaints from developers, and clear environmental benefits.”
Cr Michael Stephens added that the scheme had delivered practical outcomes while providing certainty for both council and developers.
“It has been accepted by the developer market and has delivered practical stormwater outcomes through a balanced approach of on-site and off-site water sensitive urban design solutions,” he said.
“All contributions remain locally focused… this allows us to invest strategically in projects that deliver greater environmental and community benefit. Endorsing the scheme as permanent strengthens council’s ability to plan and deliver priority infrastructure over the long term.”
Since implementation, about 40 per cent of eligible developments have contributed financially, with 60 per cent of stormwater treatment achieved on-site, the council report said.
Council’s permanent adoption of the scheme is expected to provide certainty for developers, secure locally spent contributions, and deliver a coordinated approach to stormwater management, benefiting Mornington Peninsula’s waterways and coastal environments.
“As of December 2025, the top three priority WSUD projects have progressed from feasibility to concept design, with funding for detailed design proposed through the 2026/27 council budget process using funds already collected in the Scheme,” the report stated.
First published in the Mornington News – 31 March 2026
