
The Queensland government has announced a AU$95 million investment under Round 2 of its Residential Activation Fund (RAF) to build essential trunk infrastructure and fast-track 4,900 new homes across North Queensland.
The package funds four infrastructure projects aimed at removing utility bottlenecks and unlocking land for residential development in fast-growing regional corridors, particularly around Townsville.
Total state funding for Townsville through the RAF across Rounds 1 and 2 now reaches AU$159.7 million.
Key funding allocations include:
- Upper Ross Trunk Water and Sewer Package: Over AU$80 million to enable Townsville City Council and developer Urbex to expand water and sewer networks, unlocking nearly 3,500 new homes.
- Mount Margaret Reservoir System: Almost AU$9 million to duplicate the reservoir system, unlocking 730 homes across Rangewood and Alice River.
- Mount Low Growth Corridor: AU$6 million for essential water, sewer, electrical, telecoms, and footpath infrastructure to unlock roughly 700 homes on Townsville’s northern beaches.
Deputy Premier and Minister for Infrastructure Jarrod Bleijie said the state program addresses core supply barriers by delivering critical utilities prior to home construction.
“The Crisafulli government’s Residential Activation Fund is pulling every lever to increase housing supply, because you can’t build homes without the roads, water and sewerage infrastructure to support them,” Bleijie said.
He noted that the RAF has unlocked capacity for more than 159,000 potential homes statewide in under 18 months.
Townsville Mayor Nick Dametto welcomed the state funding, pointing out that local council had approved a record 1,200-plus residential lots over the past year to meet population demand.
“Housing remains one of the biggest pressures facing Townsville and our region, so this is exactly the kind of infrastructure we need to unlock new housing and support our growing population,” Dametto said.
The latest investment forms part of Queensland’s broader strategy to expand regional housing supply, which includes stamp duty relief on new builds for first home buyers and a target pipeline of 53,500 social and community homes by 2044.


