On 7 March 1990, the "Albany Harbours Environmental Study 1988-89" report was released to the public for an eight week public submission period. The report made recommendations to significantly reduce the load of pollutants discharged into Princess Royal Harbour (PRH) by March 1992. In August 1990, the Environmental Protection Authority (EPA) released Bulletin 442 "Recommendations of the Environmental Protection Authority in relation to the Environmental Problems of the Albany Harbours". This report endorsed the recommendations of the "Albany Harbours Environmental Study 1988-89" report and specified, in Recommendation 3, industrial effluent discharge concentrations and loads to be met by March 1992. On 13 August 1990 Cabinet approved, in principle, a submission outlining the recommendations of the EPA. In accordance with the Cabinet decision, the Albany Industrial Waste Disposal Working Party (AIWDWP) was established to determine the best way to achieve these targets. In addition, the AIWDWP was directed to determine the economic impact of increased waste treatment on the foreshore industries and the social and economic consequences of this within the Albany region. In Februarv 1991 the AIWDWP reported to Cabinet. The report recommended the construction of a centralised Waste treatment plant.

On 18 March 1991, the Cabinet decided that:

• (i) the Water Authority of Western Australia (WAWA) was to fund 50% of the capital cost of a centralised waste treatment plant;
• (ii) participating industries and the Albany Shire fund the remaining 50%;
• (iii) WAWA to assume the role of project manager and owner of the asset;
• (iv) participating industries would be required to commit themselves to pay CPI-indexed operaiing and maintenance charges and replacement cost depreciation for an initial period of 5 years; and
• (v) in the event that any of the major industries decline to participate, the proposal was to be resubmitted to Cabinet.