Concrete is a well established and reliable construction material for the permanent lining of tunnels, but shows some weak performance characteristics, which can be overcome by the addition of specialised fibre reinforcement. This paper addresses the particular performance design requirements of segmental linings, discussing the improvements of fi bres on concrete properties. Focus is made on the beneficial effects of fibre reinforcement on the cracking behaviour and the toughness performance, providing a safe and durable tunnel lining.Not only the mechanical performance of fibre reinforced concrete (FRC) for segmental linings, but also the durability of the linings has gained growing attention among the designers and consultants. Especially tunnel linings with exposure to media with corrosion potential, such as wastewater sewer tunnels or desalination plant outfall tunnels, have high requirements on their durability. The design of these structures must provide a comprehensive study of durability aspects. Fibre reinforcement can substantially improve the durability of concrete.Research has been carried out on the cracking behaviour of concrete. The beneficial effects of steel fibres on the cracking behaviour reduce the permeability by reducing the flow paths within the concrete. Crack bridging steel fibres create necking effects in bending cracks, leading to earlier closure of the cracks. Further, steel fibres create particular crack formations, which lead to a substantial reduction of the fl ow rates through separation cracks. The results also show that considerable cost savings can be achieved using FRC, as the thickness of the linings can be reduced.The durability design issues will be addressed and underlined by a case history on the Hobson Bay sewer tunnel in Auckland, New Zealand.