Almost $100 million. 27km of water-main infrastructure. Capacity for more than 14,000 future homes.
A major new Queensland Government funding package has moved water, sewerage and enabling infrastructure across the Fraser Coast closer to delivery.
Round 2 of the Residential Activation Fund will provide approximately $99.86 million across five Fraser Coast projects, led by a $50 million contribution toward the Pulgul Creek Sewage Treatment Plant upgrade and $40.4 million for the Fraser Coast Water Grid.
Together with new sewer, water, intersection, road and electrical infrastructure at Fraser Lakes, Maryborough and Oakhurst, the package is expected to create capacity for more than 14,000 additional homes.
For regional contractors, the key story is physical infrastructure: treatment works, pipelines, pump stations, civil construction, water and sewer networks, electrical systems and road upgrades.

This is a funding package — not the total capital value of the underlying projects.
The $99.86 million represents new Queensland Government Residential Activation Fund contributions across five infrastructure projects.
Pulgul Creek alone is currently estimated by Fraser Coast Regional Council at approximately $100 million, with the State contributing $50 million.
Council separately estimates the Fraser Coast Water Grid at approximately $101 million, with $40.4 million now committed through the State funding package.
Two major utility projects account for more than $90M of the new funding
The Pulgul Creek Sewage Treatment Plant and Fraser Coast Water Grid form the centrepiece of the new package.
Both projects had already been identified in Fraser Coast Regional Council’s long-term infrastructure planning and 2026/27 Budget.
The new State commitment provides a significantly stronger funding base as the projects move toward procurement and construction.
- Nearly 5,000 homes supported
- Increase treatment capacity from 5ML/day to 7.5ML/day
- Future expansion provision to 10ML/day
- New wastewater treatment infrastructure
- New settling tanks
- Disinfection-system upgrades
- New treatment by-product handling equipment
- Improvements to existing treatment streams
- New treated-water marine outfall
- KBR engaged on design
- 5,530 homes supported
- Connects Maryborough and Hervey Bay water networks
- 27km State-funded water-main / distribution scope
- 25km core DN600 trunk pipeline
- Transfer pump stations
- Disinfection infrastructure
- Boys Avenue reservoir connection
- Burgowan Water Treatment Plant connection
- 15ML/day initial transfer capacity
- Provision for future 40ML/day capacity

Pulgul Creek could become a substantial multidisciplinary treatment-plant build
Council’s current scope reaches beyond civil structures into process, mechanical, electrical and control infrastructure.
Treatment capacity is planned to increase by 50%, while new settling, disinfection, process and treated-water discharge infrastructure will be required.
The existing two treatment streams are intended to remain in operation, adding live-plant staging and commissioning requirements to the future construction program.
Pulgul Creek procurement is currently targeted for 2027
KBR is undertaking design for the Pulgul Creek upgrade while Council progresses environmental approvals and the separate marine-outfall design.
Council’s current indicative program identifies an Environmental Authority milestone around December 2026, followed by tendering between January and May 2027.
Construction is currently scheduled to commence around July 2027, with project completion targeted for July 2029.
That makes Pulgul particularly relevant to contractors monitoring future wastewater packages before the main tender reaches the market.
The Fraser Coast Water Grid will physically connect Maryborough and Hervey Bay
The second major project is regional rather than site-specific.
Fraser Coast’s existing Hervey Bay and Maryborough water-supply systems operate as separate networks.
The Water Grid is designed to connect those systems so treated water can move in either direction during peak demand, planned outages, equipment failures, drought or emergency conditions.
Council’s technical factsheet identifies a core 25km-long, 600mm-diameter trunk main between the Boys Avenue reservoir complex in Maryborough and the Burgowan Water Treatment Plant.
The Queensland Government’s latest funding announcement describes the broader funded package as approximately 27km of water main, transfer pump stations and distribution mains.
The Water Grid creates a major linear civil and mechanical workstream
A trunk-water project of this length requires coordinated trenching, pipe supply, installation, fittings, valves, testing, crossings, pump infrastructure and electrical works.
Council’s current design also includes pump stations at Boys Avenue and Burgowan together with disinfection facilities at the Maryborough end of the connection.

WSP Australia has been engaged on the Water Grid design.
Council’s published program identifies tendering from early 2027, construction from around June 2027 and project completion around May 2029.

Water and sewer capacity is becoming a prerequisite for the Fraser Coast housing pipeline
The new funding links utility infrastructure directly to future residential capacity.
Rather than funding housing construction itself, the program targets the trunk infrastructure that allows future developments to connect to reliable water, sewer, road and electrical networks.
Another $9.46M spreads into Fraser Lakes and Maryborough enabling works
The funding package is broader than Pulgul Creek and the Water Grid.
Three additional funding streams complete the almost $100 million package.
2027 is shaping up as the major procurement and mobilisation year
The funding creates a substantial water, sewer and civil contractor pipeline
The projects now have meaningful public funding behind them, but that does not mean every work package has already been released.
The strongest near-term industry focus is on completing design and approvals before major construction procurement progresses.
Fraser Coast Regional Council advises businesses that its open tender opportunities are published through VendorPanel.
Council also maintains dedicated pages for current tenders, expressions of interest and awarded contracts.
With the major Water Grid and Pulgul Creek construction phases currently programmed for 2027, contractors interested in the work should ensure VendorPanel registrations, capability statements, insurances and relevant water-industry experience are current before procurement begins.
The new State funding builds on Fraser Coast’s existing capital program
Fraser Coast Regional Council’s $543 million 2026/27 Budget and $180 million capital works program had already identified the Water Grid and Pulgul Creek upgrade within the region’s broader infrastructure pipeline.
The 12 August announcement adds a significant new funding milestone, confirming almost $100 million of Queensland Government contributions across five projects.
The package also links the funded infrastructure to more than 14,000 future homes, with defined allocations for major water, wastewater and housing-enabling works across the Fraser Coast.
Almost $100M of State funding supports a wider water and wastewater construction pipeline
The approximately $99.86 million funding package is a major contribution, while the two largest underlying projects alone currently carry Council estimates of about $201 million combined.
The State contribution therefore supports projects with a broader total capital requirement than the funding announcement itself.
Pulgul Creek creates potential delivery requirements across civil, process, mechanical, electrical, controls and marine-outfall work.
The Fraser Coast Water Grid adds a major linear pipeline program, pump stations, disinfection, electrical works and regional network integration.
Fraser Lakes and the smaller Maryborough and Oakhurst packages broaden the program into sewer mains, water mains, roads, intersections, electrical and active-transport infrastructure.
The key procurement period is expected to be late 2026 into 2027 as design and approvals progress toward tender documents and physical construction packages.
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Sources
- Queensland Government — More than 14,000 homes unlocked for the Fraser Coast, 12 August 2026
- Fraser Coast Regional Council — Pulgul Creek Sewage Treatment Plant
- Fraser Coast Regional Council — Fraser Coast Water Grid
- Fraser Coast Regional Council — Fraser Coast Water Grid Project Factsheet
- Fraser Coast Regional Council — Water and sewerage projects nominated for housing fund
- Fraser Coast Regional Council — Tenders and Contracts
- Fraser Coast Regional Council — Selling products and services to Council