One of Western Australia’s landmark country horseracing clubs has begun formally shifting its 2025 season, after accusing the local council of hiking water charges by almost 700 per cent.

The Kalgoorlie-Boulder Racing Club (KBRC) will move its first race of the season to Esperance, after negotiations with the City of Kalgoorlie-Boulder to resolve a water supply issue failed.

The KBRC revealed late last year that a critical shortage of available water had left its racing season in jeopardy.

With Kalgoorlie’s annual Race Round a major tourist drawcard, negotiations to resolve the situation have been underway since then, but now appear close to collapse.

City of Kalgoorlie-Boulder Mayor Glenn Wilson said the city had been in a position to supply water to the racing club since December 19.

But in a statement released on Tuesday, the KBRC said the city’s proposal included a 680 per cent increase in charges for the water.

The club said track irrigation had reached a critical point, with only eight days of water left in its dam.

“We urge the City of Kalgoorlie-Boulder to come to the table for a rate that ensures the long-term sustainability of racing in Kalgoorlie-Boulder,” Racing WA chief executive David Hunter said.

Rate reflects ‘costs incurred by ratepayers’

However, City of Kalgoorlie-Boulder chief executive Andrew Brien said the adjustment reflected the “costs incurred by ratepayers”.

He said they city’s recycled water charge had been increased from a heavily subsidised rate of approximately $0.32 per kilolitre, negotiated in 2014, to the current rate of $2.50 per kilolitre.

“The proposal presented to the KBRC included a substantial reduction in the $2.50 charge, effectively meaning that the community would be subsidising the race club by approximately $100,000 per year, in addition to other concessions previously offered by the city,” he said.

“However, both the KBRC and Racing WA rejected all of these proposals.”

Mr Brien said the city requested an update following KBRC’s board meeting on Monday night to continue negotiations, however a response was not received.

The Esperance Bay Turf Club told the ABC it had capacity to host the KBRC’s first meeting, but anything further would pose a logistical challenge.

Mayor rules out ‘handshake deal’

Cr Wilson said the council understood the importance of racing to the city and the state, but it did not do “handshake deals”.

“We don’t do ‘looking after mates’, we do the governance which is required,” he said.

In 2021, the city entered a deal with Lynas Rare Earths to supply 1.7 gigalitres of recycled water a year for its newly-opened $800 million Kalgoorlie refinery.

Local facilities like the Kalgoorlie racecourse have faced shortages, after Lynas told the city it would require its full quota of water for its operations in 2025.

Impact to local tourism

The Cook government last year pledged a $1 million prize for the Golden Saddle slot race at the 2025 Kalgoorlie Cup, in a bid to attract more tourism to the region.

When asked if the prize would still be offered if the slot race moved to Esperance, Tourism Minister Rita Saffioti said the state government was committed to having the season stay in Kalgoorlie.

“I do believe racing is a great initiative, particularly in regional WA where you get thousands of people coming into town to enjoying a good day at the races,” she said.

She also suggested the prospect of discounted flights for tourists to the region, potentially offered under the state’s Affordable Airfares program, could hinge on events like the Kalgoorlie cup.

“What we’re trying to do is align the Affordable Airfares program with regional events,” she said.

“We continue to … work with councils … looking at what is happening in the region and then developing an Affordable Airfares program for the tourists to visit Kalgoorlie.”