Here are a couple of references to the knowledge of the undrinkable deep water storage that has been added to the overall water storage supply figures when it is NOT drinkable. It would have to be additionally treated by a process that does not currently exist as part of Sydney Water's treatment works.
http://www.unisa.edu.au/waterpolicylaw/documents/3303_twr.pdf
and the original story from News Limited
It would be great to get the original report that was released under freedom of information. If anyone has any leads to an electronic version that would be great.
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