Queensland builder fined over rust-coloured canal pollution

Queensland builder fined over rust-coloured canal pollution Thu 6 Aug 2026 at 8:33am In short: Queensland builder LPS Group has been fined just over $17,000 for rust-coloured water pollution in a Gold Coast canal. The Gold Coast council says the discolouration of a Palm Beach canal was caused by dewatering from a nearby construction site. What's next? Developer Sherpa Group says the company is working with its builder LPS Group to improve dewatering processes and is also working with the council to improve the appearance of the canal. Monique Luchterhand and her family have always enjoyed fishing and catching crabs in the waterways outside their Palm Beach home. Now, they are too worried to eat anything they catch. For the past six months, an orange stain in the canal has left residents questioning what is flowing into one of the Gold Coast's most prized waterways. "We recently got a tinny, and it's completely stained the base of it," Ms Luchterhand said. "We thought it was just mud and just that naturally occurring discolouration but then noticed it wasn't going away — it just looks horrible. "We've tried pressure-hosing it, but it's not coming off." The Luchterhands live on a canal near Tahiti Avenue and Seventh Avenue at Palm Beach, where the orange staining has also appeared along the banks. "My son still fishes, but we don't let him eat what he catches anymore. He just catches them for fun and puts them back," Ms Luchterhand said. "It's definitely something we have to be conscious of … because you just worry about what the contamination is." Ms Luchterhand said residents were left in the dark about the cause of the discolouration and had not yet been notified by the Gold Coast council. In July, a City of Gold Coast spokesperson told the ABC the canal discolouration had been caused by dewatering from a nearby construction site on Sixth Avenue. Dewatering is the process of removing groundwater from a construction site to dry out the area so work can be carried out safely. Last Friday, the council said it had fined Brisbane-based builder LPS Group. "The city has been working closely with the party responsible and has issued a penalty infringement notice (PIN) totalling $17,270, as well as an enforcement notice,"a council spokesperson said. "City officers continue to monitor the site and undertake water-quality testing to ensure any discharged water complies with relevant approvals and conditions." The council spokesperson said it had already issued eight PINs for development-related water-quality offences across the city this year. Improvements being made LPS Group is the builder contracted by Gold Coast developer Sherpa Group to deliver its $67 million luxury apartment project at 7–9 Sixth Avenue. Sherpa Group founder Christie Leet said it was working with its builder, LPS Group, to improve its dewatering processes. "We are aware of a small number of complaints in relation to the discharge of treated underground water from our site entering Tallebudgera Creek via Seventh Avenue,"Mr Leet said. "We wish to convey to the community that the dewatering discharge test results remain compliant. "However, as an added measure we have asked our builder for extra dewatering tanks to be installed onsite with more routine cleaning of the tanks beyond what is required under the management plan." Mr Leet said the company had been in "detailed discussions" with City of Gold Coast to ensure its dewatering program continued to comply with local laws. "Dewatering occurs on every development site on the Gold Coast, and we are committed to ensuring the highest standard of water management across the projects we deliver,"he said. "We are aware of some discolouration of sand within a local canal and are working closely with council to improve the aesthetics of this." LPS Group did not respond to the ABC's request for comment. Expert urges caution Griffith University water scientist Matthew Currell said the reddish water could occur when iron sulphides in the ground were exposed to oxygen during dewatering. "When you dewater the sub-surface, often you're exposing sediments to oxygen for the first time in a very long time," Professor Currell said. "That will often lead to the oxidation of metals like iron, which gives the water its reddish colour." He said the discolouration could also be an early warning sign that acid sulphate soils, a common issue along Australia's east coast, had been disturbed. "When those sulphides get exposed to air, they release not just iron, but also it can sometimes lead to acidic run-off, which can then mobilise other metals into the water and cause environmental harm," he said. While Professor Currell said he had not reviewed the canal's water-quality data and could not say whether that process was occurring in this case, he said the Gold Coast was a recognised risk area. "I'd be very careful about getting in the water if it is discoloured like that,"he said. Ms Luchterhand said she understood there was a strong need for development to cater to the city's growing population but urged the council to ensure there were strict processes in place to stop pollution from entering the city's waterways. "The waterways are part of the reason why people want to live here so it's really important that council stay on top of that and keep them clean and pure for us all to enjoy," she said.