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Infrastructure Australia has highlighted a significant water shortage in major Australian cities, impacting plans for millions of new homes. The agency's report indicates that tens of billions of dollars will be required for infrastructure projects, with a focus on desalination plants to secure drinking water.

The priority list includes 68 projects, with immediate funding needed for 15, primarily water-related. Cities like Sydney, Canberra, and Perth are projected to face substantial water demand increases. Additionally, the report supports funding for the Suburban Rail Loop in Victoria, which has an estimated $34.5 billion cost, and suggests upgrades to rail lines and public transport systems in Melbourne and surrounding areas.