Mornington Peninsula Shire and South East Water say some McCrae residents have reached agreement through mediation, but the public update stops well short of explaining how many residents are covered, what has been agreed, or when the critical works needed to help people return home will begin.
In a joint statement published on 20 March 2026, the two authorities said “significant progress” had been made in responding to the consequences of the McCrae landslides. They said agreement had been reached with some residents and that those agreements are expected to facilitate critical works and provide a pathway for residents to return to their homes.
The statement also said the design of those works is now being progressed in close consultation with the most affected residents. However, it does not disclose how many residents have signed on, what the agreements involve, what works are being locked in, or when any on-ground works are expected to start.
Formal Mediation Has Ended, But Issues Remain
The Shire and South East Water confirmed the formal mediation process has now concluded. At the same time, they said they remain committed to ongoing engagement to address remaining issues, making clear that not all matters have been resolved.
The joint statement thanked mediators Dan Star KC and Glen Pauline, as well as McCrae residents, for what it described as productive discussions.
Inquiry Found The Authorities Failed To Act With Urgency
The mediation process followed the Board of Inquiry into the McCrae landslide, which found the January 2025 landslides were triggered by water from a burst South East Water main at Bayview Road. The inquiry found the leak discharged about 40.3 million litres of water from early August 2024 until 1 January 2025.
The inquiry was also highly critical of the response from Mornington Peninsula Shire and South East Water. It found the two organisations operated in silos, failed to fully appreciate the seriousness of landslide risk in McCrae, and did not respond with the urgency and appropriate lens the situation demanded.
One of the inquiry’s first recommendations was that the Victorian Government appoint an experienced mediator to run a structured process involving the Shire, South East Water and affected landowners to reach agreement on landslide mitigation and remediation works.
That recommendation was later adopted by the Victorian Government, which appointed Dan Star KC in October 2025. At the time, the government said the mitigation and remediation works had to be completed before residents could return home.
Residents Still Waiting For Clear Answers
The latest statement points to some movement after months of uncertainty, but it leaves major public questions unanswered.
For residents still living with the fallout of the McCrae landslide, the central issues remain unchanged: how many people are covered by the agreements, what works will now proceed, and how long it will take before displaced residents can return to their homes.
