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Alcohol and other drugs 30 April 2026

Works start on the new residential drug and alcohol rehabilitation facility for the Mallee

Work is underway on the $36 million residential drug and alcohol rehabilitation facility for the Mallee.

AW Nicholson has been appointed to build the 30-bed adult residential drug and alcohol rehabilitation facility which is the first of its kind in the region, providing around-the-clock care in a purpose-built and therapeutic environment.

Around 200 people each year are expected to receive support at the Merbein facility, which will also include an additional two beds for those requiring withdrawal services.

The new residential drug and alcohol rehabilitation facility will make it easier for people to access support and treatment closer to home – reducing the need to travel long distances or leave local support networks.

Additional designs show the outdoor courtyard and internal lounge spaces that create a welcoming home like environment for receiving care.

The project is expected to create and sustain more than 100 jobs at the peak of construction.

Site preparation works have begun, which will be followed by extensive construction and landscaping.

About the project

The Victorian Government is building a $36 million residential drugs and alcohol rehabilitation facility for the Mallee.

The facility will have:

  • a 32-bed residential drug and alcohol rehabilitation facility, which includes two beds to support members of the community to access withdrawal services  
  • consulting, staff and support areas
  • shared spaces including kitchen, dining, lounge and activity areas
  • outdoor deck and landscaped areas.

This facility will be operated by Sunraysia Community Health in a consortium partnership with Mildura Base Public Hospital, Odyssey House Victoria, and the Mallee District Aboriginal Service.

Learn more about the new residential alcohol and other drugs facility for the Mallee.

Sign up to the project mailing list.

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Last updated: 30 April 2026