The Victorian government will not be building a second desalination plant with Premier Daniel Andrews saying he has confidence in the state's water system.
Climate change and strong population growth could see Melbourne facing chronic water shortages in the next 10 years, even if the Wonthaggi desalination plant runs at full capacity, Fairfax Media reports.
Melbourne's water companies are predicting demand could exceed supply by 2028.
However, Mr Andrews told reporters on Sunday he's been advised Victoria does not need another plant.
"We have no plans to invest in further water infrastructure on that scale," he said.
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"The best advice I have is that we don't need to, having made those investments all those years ago."
Mr Andrews said he was "confident about our reserves and our water system going forward", calling the multi-billion dollar and controversial plant an "insurance policy."
A state government order for 50 gigalitres from the plant was delayed after power issues in December.
And it will continue to operate through winter to deliver 15 gigalitres for the 2017/18 period.
Victoria also experienced the driest June since records began in 1900 and July rainfall has been below average.
The plant, estimated to cost between $3.5 billion and $5.7 billion, was left unused by the previous coalition government after being commissioned by the Bracks/Brumby Labor government.
