The Dunedin City Council has given the green light to a $42 million upgrade of the South Dunedin stormwater network, marking one of the largest infrastructure investments in the city's recent history. The project will replace ageing pipes, install new pump stations, and introduce flood detention basins across the low-lying suburb.
Decades of flooding prompt action
South Dunedin has experienced repeated surface flooding over the past decade, most notably during the June 2015 flood event that displaced hundreds of residents and caused millions of dollars in property damage. Since then, successive councils have commissioned reports into the area's vulnerability to climate change and rising groundwater levels. Council infrastructure chair Cr Sophie Barker said the upgrade was "overdue but essential" for the long-term viability of the suburb. "We cannot keep patching a system that was designed for a different era," she said at Monday's council meeting.
What the upgrade includes
The project will be delivered in three stages over five years. Key components include replacement of 14 kilometres of stormwater pipe, some dating back to the 1930s; construction of two new pump stations at Bathgate Park and Tainui; installation of permeable surfaces and rain gardens along King Edward Street; and a 6,000-cubic-metre detention basin near Marlow Park. The South Dunedin Future programme has been developing the design since 2019, and the approved plan incorporates feedback from over 2,000 community submissions.
Funding and rates impact
The council will fund the project through a mix of borrowing, central government infrastructure grants, and a targeted rate on South Dunedin properties. The targeted rate is expected to add approximately $180 per year to affected ratepayers' bills over the next decade. Mayor Jules Radich acknowledged the cost would be felt by residents but argued the alternative — continued inaction — would be far more expensive. "The cost of doing nothing is property devaluation, insurance retreat, and ultimately an uninhabitable suburb," he said. Similar climate adaptation projects are underway in other New Zealand cities. Wellington's resilience programme and Christchurch's red-zone regeneration offer models for how councils are responding to infrastructure challenges driven by climate change.
Community response
Residents' groups have broadly welcomed the announcement, though some have called for faster delivery. South Dunedin Community Network spokesperson Margaret Jefferies said the five-year timeline was "too slow for people whose homes flood every winter." The council has committed to establishing a community liaison group to provide regular updates as construction progresses. The first stage of pipe replacement is expected to begin in August 2026, starting in the Musselburgh Rise area.
