The NSW government hasn't gone cold on the Illawarra desalination plant, despite cancelling a planned expansion of the existing plant in southern Sydney.
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In January, with the drought biting Water Minister Melinda Pavey looked to expand the capacity of the Kurnell desalination plant.
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However, last month Ms Pavey told the state pricing regulator she was withdrawing her request for an investigation of the costs because the expansion was now "on hold"
Ms Pavey said that with the Sydney region out of drought, there was no longer the same sense of urgency around the project expansion.
"This has changed the timeline for the expansion so we can consider a broader range of options for the future of water security for Sydney," Ms Pavey said.
Around the same time as the decision to expand the Sydney plant, investigations into a site for an Illawarra desalination plant began.
The plant would have the ability to turn sea water into drinking water.
That plant's future was tied to concerns about the ongoing drought.
With the foot coming off the pedal for the Sydney expansion due to the dams filling up, the Illawarra project could have met the same fate.
However, Ms Pavey said work is still moving forward.
"A preferred site for the proposed Illawarra desalination plant has been identified and investigations into the site's suitability are continuing,": Ms Pavey said.
"The location is yet to be formally confirmed, pending the completion of those investigations."
It is understood that a site in Port Kembla has been chosen.
Minister Pavey also said the NSW government hadn't abandoned any expansion of the Sydney desalination plant.
"It was designed so it can be expanded if, and when needed," she said.
"We will be focussing our resources to achieve the best possible outcomes for securing Sydney's water supply."
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