Gold Coast council fines builder $17,270 after rust-coloured canal spill

Homeowners near Tahiti and Seventh Avenues in Palm Beach have been dealing with an orange-tinged canal for half a year, fearing contamination of fish and crabs they catch. The City of Gold Coast identified the source as dewatering from a construction site on Sixth Avenue and fined Brisbane-based builder LPS Group $17,270, also issuing an enforcement notice. LPS Group is the main contractor for Sherpa Group’s $67 million luxury development at 7-9 Sixth Avenue.

Sherpa’s founder Christie Leet said the company will install additional dewatering tanks and boost routine cleaning beyond the current management plan, while continuing discussions with the council. Professor Matthew Currell of Griffith University explained that exposing iron sulphides to oxygen during dewatering can produce the reddish hue and may herald acidic runoff, though he has not examined the canal’s specific water-quality data. Council officers will keep monitoring the site and testing water to ensure compliance with environmental approvals.