Jamberoo’s housing future remains stuck in limbo after years of delays on a vital sewer main upgrade, with a new development on hold and residents unable to even build granny flats until Sydney Water acts.

The Fountaindale Group, which is ready to deliver a 50-lot subdivision on Golden Valley Road, says it has offered to fully fund, design and construct the new main.

Despite nearly a decade of discussions and repeated offers to shoulder the upfront cost, Sydney Water has yet to confirm the size of the new main.

It leaves the project, and the town’s growth, at a standstill.

Fountaindale director Jennifer Macquarie said it had been about 18 months since Sydney Water last gave any meaningful direction.

“They keep saying, ‘we need to do a study, we need to figure it out’ and then they never do the work,” she said. “It just keeps getting deferred.”

Macquarie said the issue went beyond one developer, with local families blocked from connecting granny flats or secondary dwellings, even as NSW Government policy encourages them as part of the housing solution.

“Both the State Government and councils are encouraging people to add granny flats as part of the housing crisis … but it’s just not possible in Jamberoo,” Macquarie said.

“That affects local families, whether it’s for elderly parents or young people who can’t afford to rent.”

She said the new subdivision would also help sustain the town’s services, with some businesses struggling to stay afloat with the existing small population.

“We’ve already had a significant number of enquiries about lots in the subdivision, and extra families in the area will boost the local economy,” she said.

Fountaindale director Jennifer Macquarie.

Macquarie suspects regional projects like Jamberoo’s fall behind larger city priorities.

“But we feel like we’re not the only ones. We know Sydney Water is a hold-up for projects across Western Sydney too, so it just leads me to believe they’re stretched and under-resourced,” she said.

“That means smaller projects that are a bit more regional fall through the cracks.”

In July 2017, the rezoning application for the Golden Valley development started, and Sydney Water had no objection to it.

According to Macquarie, the project has since been riddled with delays, shifting requirements and studies that never started.

She estimates that once the sewer main is designed and approved, it could be built within about nine months.

Macquarie last month wrote to NSW Water and Housing Minister Rose Jackson, urging her to intervene and authorise the project to move ahead.

“It’s such a long-running issue, and it seems it’s just a matter of making a decision because all the solutions are being placed in front of Sydney Water,” Macquarie said.

In response, Jackson said the Minns Government was focused on ensuring housing and infrastructure were delivered side by side in communities like Jamberoo.

“That is why now that the Golden Valley development has received (Kiama) Council support, Sydney Water is actively working with the Fountaindale Group to service the project,” Jackson said in a statement.

“I expect Sydney Water to prioritise collaboration and ensure infrastructure planning and delivery keeps pace with approved growth.”

Sydney Water also provided a statement, saying it was now working with the developer to progress the sewer main and broader capacity upgrades in Jamberoo.

“We are working with the Fountaindale Group to define the technical scope of work, delivery and funding arrangements,” a spokesperson said.

“In parallel, Sydney Water will continue its investigations to create further capacity for additional infill development within the existing Jamberoo Village.”

Kiama Council, which has housing targets to meet, said it was aware Fountaindale’s development had been approved with the understanding that additional sewerage capacity would be provided by Sydney Water.

“Council welcomes any certainty from Sydney Water, not just for this site but for all the growth areas we have identified in our Local Housing Strategy,” the council said in a statement.