Council submits RAF application

Published on 21 April 2026

Residential-Activation-Fund-Round-2-Funding-Request.pdf(PDF, 3MB)

Toowoomba Regional Council (TRC) has lodged a submission to the Queensland Government’s Residential Activation Fund (RAF), seeking $150 million in State funding to bring forward delivery of the Southern Water Treatment Plant at Westbrook, unlocking critical infrastructure investment for the Region.

TRC Mayor Geoff McDonald said the project was a cornerstone of Council’s long-term growth strategy and represented one of the most significant opportunities to accelerate housing supply in regional Queensland at scale.

“If supported through a RAF partnership the Southern Water Treatment Plant would be delivered years earlier than currently programmed, enabling housing construction, private investment and job creation to commence sooner across southern and western Toowoomba,” he said.

“The Southern Water Treatment Plant provides the essential trunk water infrastructure required before new residential communities can be developed in the southern and south-western growth fronts of Toowoomba.

“This will also allow for growth in the northern areas of Toowoomba and within existing urban areas by creating additional water supply and providing a second treatment option to support the Mount Kynoch water treatment plant.”

The project will:

• Support approximately 33,000 dwellings over the long term, including up to 8700 dwellings directly enabled in the short term
• Relieve pressure on the existing Mount Kynoch Water Treatment Plant, enabling further housing supply across northern Toowoomba
• Strengthen water supply resilience and service redundancy for a growing regional city
• Provide surety for the Toowoomba Equestrian Centre as works commence for hosting the 2032 Olympic and Paralympic Games.

More importantly, the infrastructure will act as a catalyst for long term private sector investment, underpinning an estimated $20 billion in residential construction investment over the next 17 years, thousands of ongoing jobs and significant population growth to support regional workforce supply and economic resilience.

“This is a once in a generation opportunity to partner with the Queensland Government to unlock housing, jobs and economic growth in one of the State’s fastest growing regional cities,” Mayor McDonald said.

“The Residential Activation Fund is about accelerating housing outcomes and this project does exactly that. A $150 million State contribution brings forward significant investment that unlocks billions of dollars in private development and supports thousands of jobs.

“This is smart infrastructure investment. It reduces pressure on the housing market, strengthens regional Queensland and delivers an outstanding return to the State.”

Urban Development Institute of Australia Queensland CEO, Kirsty Chessher-Brown said, “Access to enabling infrastructure is the single biggest factor holding back housing delivery in regional Queensland.”

“This is why the Institute advocated for the Residential Activation Fund, so that key infrastructure is delivered, unlocking the land needed to supply homes."

Independent economic analysis suggests that bringing forward the construction of the Southern Water Treatment Plant is expected to:

• Generate around $134 million in Gross Value Added to the Queensland economy during construction
• Support approximately 280 full time equivalent jobs per year during the build phase.

Toowoomba Chamber of Commerce CEO Tanaya Treadwell said, “This project is a catalyst for sustained regional economic growth.”

“Accelerating the Southern Water Treatment Plant will drive major construction activity, support local supply chains, and create the conditions for long term population and business growth across Toowoomba.”

Housing Industry Association Executive Director of Queensland, Mike Roberts said, “Bringing forward enabling infrastructure is critical to getting homes built and keeping construction pipelines moving.”

“Projects like the Southern Water Treatment Plant provide the certainty builders need to invest, employ local trades and deliver housing at scale. Early State investment through programs like the Residential Activation Fund helps turn planning into construction and jobs on the ground.”

Mayor McDonald thanked the Crisafulli Government for the creation of the Residential Activation Fund, the significant funding pool and the opportunity to apply.