We continue to support the McCrae community and strengthen our network. This work responds to the Board of Inquiry recommendations and goes further to improve safety and resilience in McCrae and other landslide-susceptible areas.

Supporting our customers

We continue to waive bills for evacuated properties in McCrae.

Improving infrastructure

We’ve completed a 130m water main upgrade on Bayview Rd, McCrae. This $12.5 million project strengthens the local network.

Across the Mornington Peninsula, we’re investing over $180 million in water and sewer infrastructure between 2023 and 2028.

Network monitoring

We’ve increased monitoring and oversight in McCrae and other landslide-susceptible areas, including:

  • Enhanced monitoring of the McCrae network, prioritising reported issues and completing over 400 maintenance and repair jobs.
  • More than 2,300 digital meters installed in McCrae, with over 380 alerts issued to customers about potential property leaks.
  • Over 4,700 digital meters installed in other key areas, mainly in the Yarra Ranges.
  • 48 sewer monitoring devices and 22 flow meters installed across McCrae and other identified areas.
  • New alarms and monitoring tools in our Network Operations Control Centre to detect leaks, bursts and unusual flows.
  • CCTV inspection of around 10 km of gravity sewer in susceptive areas of the Yarra Ranges.

Site remediation

We understand that Mornington Peninsula Shire Council and residents are working on a remediation design for the escarpment. We’re engaging with Council and residents on this design.

Governance and accountability

We’ve strengthened our governance and oversight of the Board of Inquiry recommendations, including an independent expert review.

Board of Inquiry

The Board of Inquiry into the McCrae landslide has concluded. Chair Renée Enbom KC submitted the final report to the Governor of Victoria on 9 September 2025. For more information visit the Board of Inquiry into the McCrae landslide website.

For South East Water's response please read our media statement.

Progress against Board of Inquiry recommendations

Below is a progress update against the Board of Inquiry recommendations as of 31 March 2026.

Recommendation

Status

Recommendation 2: Participation in the mediation process

The Board of Inquiry recommends the Shire and SEW appoint or engage a suitably experienced individual to lead and oversee their participation in the mediation process (Recommendation 1), with a view to bringing a fresh and pragmatic perspective to the issues.

South East Water participation in mediation was led by a senior officer.

Recommendation 3: Trench stops and carrier pipes

The Board of Inquiry recommends the Shire and SEW obtain expert advice about the use of trench stops and carrier pipes in parts of McCrae to mitigate the risk of landslides, including the use of such measures in more remote locations where water leaks may be less readily detected.

Consultant appointed and work is underway.

Next update: October 2026

Recommendation 4: Assessment of infrastructure

The Board of Inquiry recommends the Shire and SEW thoroughly assess their water infrastructure in McCrae to identify any need for repair or replacement works to mitigate landslide risk. SEW should also adopt this measure in relation to its sewer system.

Consultant appointed and work is underway.

Next update: October 2026

Recommendation 10: SEW's McCrae Strategy Group

The Board of Inquiry recommends the new Managing Director of SEW review and improve the approach that has been and is being taken by SEW's McCrae Strategy Group, with the assistance of a suitably experienced external independent consultant.

A new internal governance arrangement is in place.

An Independent Expert has been appointed.

Recommendation 11: Calibration of SEW alarms

The Board of Inquiry recommends SEW progress its work on calibrating its alarms in areas susceptible to landslides to drive effective and timely leak investigations.

Recalibrated alarms in place for McCrae.

Recalibration work continues in other areas.

Next update: July 2026

Recommendation 12: Real-time flow balancing

The Board of Inquiry recommends SEW progress its work on developing flow balancing algorithms required for real-time flow balancing, with the objective of enhancing its ability to detect potential water leaks in a timely manner, especially in areas susceptible to landslides.

Algorithm developed for McCrae.

Algorithm under development for other areas.

Next update: July 2026

Recommendation 13: Documentation of leak detection processes and procedures

The Board of Inquiry recommends SEW clearly document its leak detection processes and procedures to:

a.    outline training requirements to ensure employees and contractors apply procedures consistently;

b.    set out the systematic steps that employees and contractors must take when investigating unknown sources of water;

c.     provide guidance on the interpretation of field test results;

d.    require employees and contractors, in more complex cases, to assess whether the unknown water may be originating from a SEW asset located uphill or at a more distant location;

e.    set out roles, responsibilities, and escalation pathways for decision-making; and

f.      include provisions for periodic review and updating of the processes and procedures to account for any lessons learnt, new technology, or changes in risk profile.

Documented procedures and work instructions have been developed.

Recommendation 14: Adapting leak detection practices and processes

The Board of Inquiry recommends SEW review its leak detection practices and processes to ensure they are appropriately adapted to address the heightened risk of excess water accumulating or surfacing in areas susceptible to landslides.

Documented procedures and work instructions have been developed.

Recommendation 15: Interpreting on-site electrical conductivity readings

The Board of Inquiry recommends SEW ensure that on-site electrical conductivity readings outside mains water range are not taken as conclusive evidence that leaking water has not originated from its assets. Appropriate processes and procedures should be developed to account for the possibility that the water may have travelled through the ground and changed in its chemical composition.

Documented procedures and work instructions have been developed.

Recommendation 16: Identifying clusters of complaints

The Board of Inquiry recommends SEW progress its work to develop systems and processes capable of identifying the potential relationship between clusters of complaints in relation to potential water leaks, particularly in areas that are susceptible to landslides.

A tool has been developed.

Mediation

Significant progress has been made addressing the consequences of the McCrae Landslides. Read the joint statement from Mornington Peninsula Shire Council and South East Water made on 20 March 2026.

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