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Fresh water is an essential resource for the generation of electricity.  It is used for the production of high purity steam, condensate cooling, supply of domestic water and miscellaneous operations including dust suppression.

Vales Point Power Stations draws water for condensate cooling from Chain Valley Bay on Lake Macquarie.  

A water reclamation plant was installed at Vales Point in 2008.  The Vales Point water reclamation plant was awarded an Energy Supply Association of Australia Sustainable Practice Framework Award in the category Industry Innovation/Best Practice Community Consultation and Stakeholder Support. The plant reclaims water from treated sewage so it can be used in the demineralisation plant.  This is saving up to 230 million litres of fresh water a year.