Hunter Water is pushing ahead with an application to double the capacity of the proposed Belmont desalination plant despite the state government ditching plans to expand the Sydney desalination plant.
The government announced this week that it would delay the expansion of the Sydney plant because the city's main water storage, Warragamba Dam, was now at 83 per cent.
Water Minister Ms Pavey said in January that the expansion was a "key element in protecting Sydney's water security" after the city had been in drought for 18 months.
The Lower Hunter has also experienced healthy rainfalls since January. On Tuesday the region's overall storage level was 67.8 per cent, 0.8 per cent up on this time last year.
Hunter Water announced last month that it was seeking to double the capacity of the proposed Belmont plant, six months after it lodged its original environmental impact statement for the project.
A Hunter Water spokeswoman confirmed it would submit an amendment report to the original environmental impact statement for the Belmont plant, part of its drought response plan.
"As we haven't fully recovered from drought, Hunter Water continues to implement its drought response measures, including water conservation programs, the operation of the Tomago Sandbeds and planning for a drought response desalination plant at Belmont," the spokeswoman said.
She added that while there were no plans to build the plant, it would provide the region with added water security in the event storage levels drop to critical levels.
If the revised application is approved the plant would be capable of producing up to 30 million litres of drinking water a day. By comparison the existing Sydney desalination plant is capable of producing 250 million litres per day.
Hunter Water is also reviewing the Lower Hunter Water Security Plan. The review seeks to address risks and opportunities related to population growth, new technology and climate variability.
Two areas have been identified as potential sites for a new 160 gigalitre dam.
Walsh Point, located in the Port of Newcastle, has been earmarked as a possible site for a future desalination plant.
Consultation about the options will continue throughout this year before a recommendation about the preferred portfolio of options is made next year.
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