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I don't know what a "clearance area" is. You can not build within an easement. The distances you mention have nothing to do with easements, and more to do with the "zone of influence" set out in the "protection of services guidelines," available from Water Corp. (I've linked to a pdf a bunch...

"...in their current state, however if you upgrade..."

As far as I am aware, and from what I'm reading in their response, you can put your driveway along the south boundary, they will just require you to apply for approval, then pay for the upgrade of the access chambers to make them trafficable. I have no idea how much this will cost. It looks...