The system was operated as a commercial enterprise until 1925, after which the business and its assets reverted to the City of Melbourne, as specified by the original act. One of the early improvements made by the City Council was to consolidate the system. The steam pumps were replaced by new electric pumps, located in the Spencer Street power station, which thus supplied both electric power and hydraulic power to the city. The hydraulic system continued to operate under municipal ownership until December 1967.