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Version Date Author Reviewed Issued by
Final 17/03/2015 J Kelly L Smith J Kelly
Bld 11b, Gate 2c
Hartley Grove
URRBRAE SA 5064
Created by Arris Pty Ltd
t 08 8313 6706
f 08 8313 6752
ACN 092 739 574
Client Gary Mavrinac
Name of
District Council of Mallala
Organisation
Name of Project Northern Adelaide Irrigation Scheme: Market Proving Study
Name of Document
Project Number
Document Version Final
Cover
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Table of Contents
List of Tables ........................................................................................................................ ii
List of Figures ....................................................................................................................... ii
Abbreviations ...................................................................................................................... ii
1 Introduction ................................................................................................................. 1
2 Support for the NAIS Project ....................................................................................... 2
3 Demand for RCW ......................................................................................................... 2
3.1 Seasonal demand for recycled water .................................................................. 5
4 Uses for Recycled Water ............................................................................................. 6
5 Farm Investment ......................................................................................................... 6
6 Price for Water ............................................................................................................ 7
6.1 Capital Contribution ............................................................................................. 7
7 Other Issues ................................................................................................................. 8
8 Discussion .................................................................................................................... 8
Appendix A ‐ Northern Adelaide Irrigation Scheme: Market Proving Study,
Expression of Interest
Appendix B ‐ Fact Sheet: Guidelines and Considerations When Using Recycled
Water
Page i
List of Tables
Table 1 Water demand per region identified in the EoI ................................................... 2
Table 2 Discussion of factors impacting the identification of customers
and potential demand .......................................................................................... 5
Table 3 Seasonal demand for RCW as indicated in the completed EoIs .......................... 5
Table 4 Potential use of recycled water by industry sector ............................................. 6
Table 5 Shows levels of on‐farm investment and increase in land values ....................... 6
Table 6 Water required at different price points as established in the EoI ..................... 7
Table 7 Summary of EoI participants willing to pay a capital contribution ...................... 7
List of Figures
Figure 1 Map of potential areas that could be supplied recycled water in
the Mallala Council area. ..................................................................................... 1
Figure 2 Spatial distribution of water demand .................................................................. 3
Figure 3 Volumes of RCW required by region .................................................................... 4
Abbreviations
Abbrev Units Description
CALD Culturally and Linguistically Diverse
EoI Expression of Interest
ML ML mega litres
NAIS Northern Adelaide Irrigation Scheme
RCW Class A recycled water
Page ii
1 Introduction
A Market Proving Study for the Northern Adelaide Irrigation Scheme (NAIS) was carried
out by Arris Pty Ltd from December 2014 to February 2015. This study was conducted
and provided to the District Council of Mallala for their feasibility study for the supply of
recycled water north of the Gawler River in the Mallala Council area.
It was decided that the study be conducted with demand being demonstrated in areas
from A ‐ F (Figure 1). Areas A ‐ F have been named for planning purposes only and are
the most likely areas to be supplied with recycled water. These areas will also provide
information with respect to future demand and potential staging options for the
development of a larger system when new water supplies are identified.
The Council, through a Memorandum of Understanding (MOU) with SA Water, is
investigating the demand for a scheme to supply 8GL of winter water to horticulture and
other agricultural users. Over time, it is anticipated that the scheme will be capable of
supplying over 20GL per year.
Council is committed to expanding the food producing area supplying local and
international markets. The 8GL will support:
• 1,000 new jobs in agriculture;
• 2,500 new service jobs;
• 1200 ha of land developed for irrigation with over $150M of private investment;
• Business opportunities for regional transport, services, packaging, processing
and tourism businesses; and
• Links to education and training opportunities (e.g. Two Wells School,
Roseworthy Campus).
Figure 1 Map of potential areas that could be supplied recycled water in the Mallala Council area
Project Title NAIS Market Proving Study Page1 Arris Pty Ltd
2 Support for the NAIS Project
Following an advertising program where advertisements were placed in the local press
making potential customers aware of the potential new opportunity, Arris completed
Expressions of Interest (EoI, Appendix A) with potential customers for the supply of Class
A recycled water. A Fact Sheet: Guidelines and Considerations When Using Recycled
Water (Appendix B) was also provided to people seeking to complete the EoI. It can be
seen in the EoI that potential customers were to provide information on:
• Current business including nature of business, experience and location;
• Intended use for recycled water;
• Barriers to development including roads, power, gas and planning issues;
• RCW use requirements including land area, quantity of water and seasonal
demand;
• Proposed development to be undertaken by the customer including proposed
investment and value add to existing assets;
• When they require RCW for development of a potential staging strategy;
• Willingness to pay for water at defined price points;
• Willingness to participate in a capital contribution scheme to support the project
and to reduce potential water pricing models (discounted price for water).
There was a high level of support for the proposed NAIS project. It would be fair to say
that landholders and potential customers were aware of the 'need' for further
expansion of RCW irrigation into the Mallala district. Potential customers who
completed EoIs fell largely into the following groups:
• Landholders who were looking to add value to their property;
• Landholders that were interested in pursuing different farming activities; and
• Irrigators who have speculatively bought land in the region with the belief that
RCW would be supplied in time.
3 Demand for RCW
Through the delivery of this project it was clear that there was significant demand for
RCW for irrigation. The EoI process has identified 32.962GL of demand (Table 1). The
spatial distribution can be seen in Figure 2 with area values given in Table 1 and Figure 3.
Table 1 Water demand per region identified in the EoI
% of Total
Area (Figure 1) Customers Volume (ML)
Volume
A 29 2,789 8.5
B 12 6,568 19.9
C 16 13,045 39.6
D 5 5,140 15.6
E 1 800 2.4
F 3 870 2.6
Barossa 1 3,750 11.4
Total 67 32,962ML 100%
There were a number of limitations to the process that has limited the identification of
demand discussed in Table 2.
Project Title NAIS Market Proving Study Page2 Arris Pty Ltd
Figure 2 Spatial distribution of water demand
Project Title NAIS Market Proving Study Page3 Arris Pty Ltd
3,750ML
13,045ML
800ML
5,140ML
6,568ML
2,789ML
Figure 3 Volumes of RCW required by region
Project Title NAIS Market Proving Study Page4 Arris Pty Ltd
Table 2 Discussion of factors impacting the identification of customers and potential demand
Limitation Discussion
Due to the timelines put in place that are driven by external factors
including funding opportunities, internal timelines (Council), ...
Quick turnaround of the
study
Arris will continue to collect EoIs past the life of the project, update
the data base and pass on that information to Council.
It was clear that potential customers in areas B and C had a high
expectation that they were favoured by location therefore there was
a high level of interest in that area.
Potential customer The demand trended down as the survey moved from west to east.
expectations Arris feels that interest in RCW would be similar to areas A, B & C if
adequate time and information was given to these regions.
Arris believes that given adequate time, similar level of demand
would be achieved in the areas tending to the east.
The highest success rate for completion of EoIs came from direct
contact where other potential customers were indicated by word of
mouth introductions. This was particularly true for Culturally and
Reliance on advertising Linguistically Diverse (CALD) participants.
This also influenced the distribution of demand as potential
customers had already identified location for use of water.
The project was clearly targeted at potential irrigation customers.
This has limited the identification of potential customers for water
that have high water demand that could be relocated to the region.
Diversity in demand for This would have significant benefits in increased water demand,
water increased employment and more evenly spread water demand over
the year. Arris has undertaken a number of assessments for water
authorities identifying other potential customers for water. In a
recent project for South East Water (Victoria) industrial use of the
RCW represents >50% of the water demand.
3.1 Seasonal demand for recycled water
To gain an understanding of the seasonal demand for recycled water, demand was
assessed. The weighted demand was calculated from the product of seasonal
percentage requirement, as indicated in the EoI, and total water demand.
Table 3 Seasonal demand for RCW as indicated in the completed EoIs
Summer Autumn Winter Spring
Percentage of total demand 40.7% 23.4% 12.7% 23.2%
Volume (ML) (calculated) 13416 7713 4186 7647
64 (95%) growers responded to the seasonal demand assessment which has been used
to calculate the seasonal demand. This is an important factor in the development of the
storage‐demand model.
Project Title NAIS Market Proving Study Page5 Arris Pty Ltd
4 Uses for Recycled Water
There are a wide range of potential crops that have been identified which could
potentially be grown with recycled water. Rather than discuss potential crops, cropping
systems have been grouped for analysis of their respective water demand. Breakdown
of cropping systems include:
• Permaculture (Almonds, Viticulture and Olives);
• Broadacre vegetables (Potatoes, Cauliflower, Carrots, Bunch lines, ...);
• Field and Fodder Crops (Cereals, Legumes, Lucerne, ...);
• Greenhouse and Protected Cropping;
• Other (Domestic trees and gardens, Sand Processing, other Non‐agricultural use)
The breakdown of cropping systems and demand is given in Table 4.
Table 4 Potential use of recycled water by industry sector
% of total
Intended Use Customers Volume (ML)
Volume
Permaculture 6 4,257 12.9
Broadacre 23 15,785 47.9
Field and Fodder Crops 7 2,328 7.1
Greenhouse and Protected Cropping 26 9,794 29.7
Other 5 798 2.4
Total 67 32,962ML 100%
Note: there is likely to be some variation in these figures as a number of growers
indicated that they may participate in more than one sector. These were delineated by
the sector they were currently growing in.
5 Farm Investment
The demonstration of farm investment is important in demonstrating the investment by
landholders in accessing RCW. The total investment as indicated by the 81% of growers
that completed this section was $455.19M (Table 5).
Table 5 Shows levels of on‐farm investment and increase in land values
Item Investment ($)
Land Value* 296.829M
Irrigation Equipment 18.522M
Packing and Processing 34.505M
Other Infrastructure 105.335M
Total 455.191M
*The EoI did not distinguish between the increase in land value as a result of having
water or the potential cost to farmers.
The high value of other infrastructure indicated came mainly for the greenhouse and
protected cropping sector for the investment in greenhouses.
Project Title NAIS Market Proving Study Page6 Arris Pty Ltd
Description:Table 1 Water demand per region identified in the EoI 2 . Permaculture (Almonds, Viticulture and Olives);. • Broadacre
