Dalby Council, in conjunction with Arrow, has initiated the upgrade of an existing desalination plant at Dalby to treat coal seam gas water from its nearby gas fields at Tipton West, Daandine and Kogan North. The company plans to supply up to 5 mega litres per day to the plant which will then be available to supplement the town water supply.
 
The $16 million plus plant is scheduled for construction in the second half of 2008 and is being jointly funded by the State and Commonwealth Governments, Dalby Town Council and Arrow Energy. Arrow will supply water produced from its coal seam gas operations to the plant at no cost.