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> Reminder that Dubbo (population of only ~40,000) had to have water shipped in on trucks during the recent drought

The Goldfields Water Supply Scheme pumps water over 560 km from Perth to Kalgoorlie; Dubbo is only 380 km from Newcastle. If you were serious about turning Dubbo into the state capital, you would have to give serious thought to building a pipeline to pump water from the Hunter, and then Dubbo would only run out of water if Newcastle was running out of water. (You could also build a pipeline from Sydney to Dubbo, which is only about 20km further, but much more mountainous terrain in the way.)

> I do think we should decentralise, but it will likely look more like Newcastle and Wollongong growing

Newcastle and Wollongong aren't really that much cheaper than Sydney. They are coastal, and everyone wants to live on the coast; also, Wollongong has physical growth limitations due to the Illawarra Escarpment. There's a lot more land on the other side of the Great Dividing Range, and water supply issues could be addressed with sufficient investment in water supply infrastructure.

> Also note, Canberra kind of fits your description - a regional "town", servicing the government. And it's also very expensive. As in, recently reported to be the second most expensive place in the country to buy a house, after Sydney.

Canberra is in some ways Australia's version of Washington DC. Although, DC has a very different social history – e.g. DC has historically (but as of last census no longer) had an African-American majority; and, DC is physically a lot smaller than the ACT is. But, what I am really talking about is an Australian analogue of Sacramento, Albany, Springfield (Illinois), Salem (Oregon), Carson City (Nevada), etc – which is something Australia doesn't have.

All that said, Queanbeyan's median house price is >$50K cheaper than Canberra's, by some measures beneath the average of Australian capital cities. And it is only 20 minutes drive from Canberra. In Sydney or Melbourne, that's what many would call an inner/middle suburb.




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