The underlying principle of applying developer charges is that the new development should meet the full cost of assets serving the development. The growth predicted for the MidCoast region requires significant amounts of infrastructure.

While the developer provides much of the infrastructure within a new subdivision, developments will also rely on upgraded and increased capacity from infrastructure external to the subdivision.

By charging developers a contribution, the costs are fairly distributed to those who directly benefit from the new infrastructure rather than existing residents. This is achieved by levying water and sewer developer charges on the development as a condition of approval.

The current developer charges were calculated in 2016 and included planned capital works and cost estimates that were current at that time.

The revised developer charges incorporate relevant works from the current planned capital works program and cost estimates, as well as any relevant assets that have been constructed since 2016.

Different locations are serviced by different water and sewer assets with varying capacity and age. If large new assets are required to service growth in a particular area (e.g. an upgrade of a treatment plant) or the area is some distance from established infrastructure, this will make the developer charge for that area higher.

The developer charges for smaller towns and villages with very low growth and a small population base are very sensitive to existing and future asset values, so these areas can end up with higher developer charges.