Executive Summary: This report presents the first stage of Work Package 4, a three year research program investigating the public acceptance of an alternative urban water management system. Central to this stage of the research is a proposed non-potable fit-for-purpose water supply system in the Southern Rivers area of Metropolitan Perth. The first stage of research specifically involved the identification of key drivers that shape community acceptance of a water supply system designed for a greenfield site with environmental constraints common to new urban developments in Perth – high water table, adjacent wetlands of high conservation significantly and proximity to the Swan Canning Estuary and its tributaries. The proposed water supply system was designed to use groundwater that is close to the surface as a supply for outdoor use in new housing developments.A model of water supply system acceptability, previously developed and proved reliable and valid by the Australian Research Centre for Water in Society (ARCWIS), was used to identify the degree of community acceptability and the major drivers of that decision. Previous research had indicated perceptions of risk, fairness and equity, community trust, a subjective assessment and perceived outcomes of the system were key drivers in the evaluation of water supply system acceptability. This occurred in examples of future supply systems, current supply systems, supply systems in different major Australian metropolitan cities and at different scales. Thus it was a proven assessment model for the current case study. The model was used in conjunction with a community questionnaire covering measures of the variables indicated above and socio-demographic and additional items of interest. Data was collected from 452 randomly selected households in the northern, eastern and southern suburbs of the Perth Metropolitan area.Initial findings indicated that the majority of respondents considered the water supply system to be acceptable, with few believing it to be unacceptable. It was also interesting to note that the majority of respondents indicated willingness to live in a suburb with such a water supply system if available.Structural equation modelling resulted in a model that identified the key drivers that shaped community acceptance of the proposed non potable fit-for-purpose water supply system. These drivers were risk perceptions, perceptions of fairness and equity, community trust in authorities, perceived outcomes and a subjective assessment of the water supply system. Furthermore, the model explains 74% of the variance of acceptability providing additional confidence in its applicability. This figure is remarkably high for a model that endeavours to predict people’s decision making.Having identified the acceptability of the proposed water supply system and the key drivers of the decision, the next stage of the research program will introduce costs and pricing of the water supply. The findings of this investigation and research into the feasibility of nonpotable fit-for purpose water supply systems in new urban developments by other Work Packages in the project, will lead to the identification of socially acceptable alternative water sources. A benefit-cost analysis (including an analysis of the community’s willingness to pay for the supply of good quality non potable water resources) will be undertaken on these proposed alternatives.