Baillieu proposes dam for Melbourne

The Victorian Opposition is proposing a dam at Arundel in Melbourne's west to try to ease the state's water shortage.

Opposition Leader Ted Baillieu says Melbourne residents are facing a water crisis and cannot rely on country Victoria to produce water.

Mr Baillieu says the Government's plan to house an additional one million people in Melbourne by 2030 is doomed to failure unless water capacity is increased.

He says the Opposition's proposed $80-million dam project would store some 18,000 megalitres.

"It will add to Melbourne's water storage, particularly for the west," he said.

"It has flood mitigation potential and ultimately it has some capacity to be a storm water harvester as well.

"Plus we intend to upgrade the treatment plants at Carrum and Werribee."