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This initiative sought to protect the environment and adapt to the impacts of climate change, while promoting productive and sustainable agriculture that is supported by modern infrastructure and policy through 2 distinct but interdependent program streams: Rural Water Infrastructure and Sustainable Irrigation.

These programs supported:

  • modernised infrastructure
  • improved water efficiency
  • increased resilience to changes to water availability
  • achieving our shared responsibility for environmental health across Victoria’s irrigation sector.

Furthermore, it supported the decisions and viability of food producers and processors, who contribute significantly to the social fabric of regional communities.

The department, in conjunction with regional delivery partners (catchment management authorities – CMAs, water corporations, local government and Agriculture Victoria), support the future of irrigation with improvements to physical assets (both on- and off-farm), changes to farm systems, making information available and accessible, and leading institutional approaches following a significant period of modernisation across the sector.

Environmental contribution 5 (EC5)

Water wise rural communities

  • 2020–21 expenditure: $15,083,000
  • 2021–22 expenditure: $16,883,000
  • 2022–23 expenditure: $14,907,000
  • 2023–24 expenditure: $11,983,000

Summary of EC5 progress

Victoria’s irrigation sector is facing unprecedented challenges driven by socio-economic, climatic and environmental pressures, including declines in water availability, changes in global commodity markets and the rationalisation and modernisation of delivery infrastructure in irrigation areas.

Initiating and overseeing rural water infrastructure projects

The Rural Water Projects team of the Water and Catchments Group initiates and provides oversight and governance of rural water infrastructure projects with investment by State and Commonwealth Governments. The team also secures funding for future rural water infrastructure investment, in response to community expectations for government to address future water reliability and access.

Rural Water Project (RWP) objectives:

Targeted and efficient investment in water infrastructure, supporting rural, regional and peri-urban communities to be adequately prepared to meet the challenges of drought and climate change.

Improved rural water security in targeted areas, through governance and support for a range of projects focused on improving water security, boosting productivity, supporting emergency preparedness, and providing significant regional community benefits, including broader benefits for the environment.

Improved transparency and accountability of Government investment in rural water infrastructure projects.

The Rural Water Projects team oversees approximately $800 million of water infrastructure projects across Victoria (including feasibility, business cases and capital projects), providing governance and oversight through the management of contracts with Rural Water Corporations and bilateral project schedules with the Australian Government.

Projects Complete

Over the course of EC5, multiple projects have reached practical and contractual completion, including:

  • Goulburn-Murray Water (GMW) Connections Project ($2 billion)
  • GMW Water Efficiency Project ($177.5 million)
  • South West Loddon Rural Pipeline ($82 million)
  • Macalister Irrigation District Modernisation Project Phase 1B ($65.40 million)
  • Mitiamo Pipeline Project ($29 million)
  • Lindenow Valley Water Security Scheme ($20 million)
  • Werribee Irrigation District Modernisation Project (Stages 1-3) ($19.98 million)
  • Bacchus Marsh Irrigation District Modernisation Project (Stages 1-4) ($9.90 million)

Active projects

Water infrastructure projects that continued through EC5 include:

  • Western Irrigation Network ($116.3 million)
  • East Grampians Rural Water Supply Project ($85.2 million)
  • Macalister Irrigation District Modernisation Phase 2 Project ($62.6 million)
  • Victorian Connections Funding Pathway Package (9 Projects) ($46.3 million)
  • Lower Murray Water – Sunraysia Water Efficiency Project ($37.9 million)

These projects were delivered on time and budget and will generate water savings and improve water security for rural communities.

New Investment into Water Infrastructure Projects

Over the course of EC5, Victoria has secured Australian Government co-investment into a number of new multi-year projects which include both capital infrastructure and business cases. These projects include:

  • Western Port Irrigation Scheme Project ($112.8 million)
  • Water Quality for Wannon ($52.2 million)
  • Victorian Connections Funding Pathway Package, which includes 9 projects ($46.3 million)
  • Werribee Irrigation District Modernisation (Stages 4-5) ($22 million)
  • Recycled Water on the Bellarine ($13.9 million)
  • Rutherglen Reuse Scheme ($12 million)
  • Enhancing Gellibrand River Summer Flows Project ($10 million)
  • Growing the Surf Coast Hinterland and Protecting the Karaaf ($10 million)
  • Coliban Regional Rural Modernisation Detailed Business Case ($5.7 million)
  • 6 Business Cases ($5.42 million)
  • King Road Recycled Water Wetlands Storage Project ($4.8 million)
  • Water Security for Buchan ($3.8 million)
  • Mitchell System Water Security Project ($2.22 million) (Detailed Business Case)
  • Wangaratta Water Security and Supply Strategy Project ($1.5 million) (Preliminary Business Case).

More information on these projects can be found on the National Water Grid Fund webpage here: www.nationalwatergrid.gov.au/.

In addition, Victoria has attracted new Australian Government investment into projects through the Commonwealth Off-Farm Efficiency Program, including:

  • GMW Water Efficiency Project ($177.5 million) - now complete
  • Lower Murray Water – Sunraysia Water Efficiency Project ($37.9 million)

Both projects will recover water for the environment under Murray Darling Basin Plan targets.

Sustainable Irrigation Program (Water Wise Rural Communities) implementation

Irrigated agriculture is one of the largest industries in Victoria, supporting the economy and our rural communities.

For over 30 years, the Sustainable Irrigation Program (SIP) has worked to improve water-efficiency in the Victorian irrigated agriculture sector and to mitigate the impact of irrigation practices on the environment, primarily focusing within major irrigation areas.

This includes:

  • Goulburn Murray Irrigation District (GMID)
  • Victorian Mallee region
  • the Macalister Irrigation District (MID)
  • and more recently, in the North East and South West of Victoria.

Throughout 2020-2024, SIP was focused on increasing the adaptability of irrigation communities to reduced water availability and climate variability by providing information and support for planning, decision-making and practice change.

This aimed to support the increased resilience of regional communities and improve environmental outcomes in irrigation areas. More efficient use of water in agriculture is a key part of growing the resilience and adaptability of the irrigation sector as the climate becomes increasingly variable.

Sustainable Irrigation Stream

Implementation of the sustainable irrigation stream of the Water Wise Rural Communities initiative has progressed through project development processes undertaken by the department (including Agriculture Victoria), CMAs and other regional partners.

Under this initiative, a series of activities have been delivered to improve the sustainability of irrigated agriculture. This includes:

  • Mallee CMA’s renewed Land and Water Management Plan (LWMP) and updated Irrigation Development Guidelines endorsed by the department in September 2021. A review of the guidelines has been progressing to ensure that the guidance is contemporary to the policy directions in this region.
  • North Central CMA has finalised the Loddon Campaspe Irrigation Region LWMP, launched in November 2021 by the then Parliamentary Secretary for Water.
  • Goulburn Broken CMA celebrated the 30-year milestone for implementing its Shepparton Irrigation Region LWMP in December 2021. An update to the Plan with considerable community and agency input was undertaken over 2 years culminating in the launch of the new land and water management plan in August 2024.
  • Implementation of the Northern Victorian Irrigation Development Guidelines covering the Goulburn Murray Water Region which were endorsed by the department in September 2021. Updated irrigation development guidelines have also now been completed in West Gippsland, Glenelg Hopkins and the North East.
  • North East CMA and West Gippsland CMA continue to implement their respective LWMPs with support provided to the community, including irrigation extension advice and targeted incentive programs.
  • The provision of a range of incentive programs and extension support, including recent training to irrigators both in Northern and Southern Victoria looking at optimising pressurised irrigation systems to maximise effective use of irrigation water and improve energy efficiency in operation.
  • Supporting the irrigation community with over 3,000 engagement event participations, including field days aimed at improving knowledge and skills relating to irrigation, in conjunction with one-to-one irrigation extension advice and case management. This has informed decision making in relation to a range of irrigation water use practises, including planning for changes in farm irrigation layout and optimising on-farm irrigation water use, particularly in relation to pressurised irrigation.
  • Delivery of webinars providing information on water policy and water management issues as a way of reaching broader geographical and stakeholder groups, in compliment to more focussed one-to-one and group irrigation extension methods.
  • Utilising information generated through Regional Irrigated Land and Water Use Mapping (RILWUM) program to support Land and Water Management Plan implementation.

Basin Salinity Management 2030 (BSM2030) strategy

Victoria has continued implementing the Basin Salinity Management 2030 (BSM2030) strategy and ensuring Victoria’s compliance with the Murray Darling Basin Agreement. In partnership with other jurisdictions, Victoria has achieved 14 consecutive years of compliance.

Victorian Irrigation Drainage Program Strategic Directions 2020-24

The Victorian Irrigation Drainage Program Strategic Directions 2020-24 were finalised and are guiding actions to improve irrigation drainage management in Victoria. Key achievements include:

  • Innovations around the Drainage Course Declarations and associated engagement, design and implementation works has provided for cost-effective shift in the irrigation drainage program; this can be built on in future investment to maximise environmental, drainage management outcomes.
  • The establishment of the Waranga Drainage Course Declarations (DCDs) secured improved irrigation drainage for 12,670 ha of farmland (including the Waranga priority drainage project), helping to mitigate the impacts of waterlogging, salinity and elevated water tables.
  • The Murray Valley West Drainage Course was declared, and works to implement the DCD are under way.
  • Investigative work on nutrient management processes with the Macalister Irrigation District has also continued during this time.

Rural Water Policy implementation project

The key objectives and outcomes for the Rural Water Policy Implementation project was to increase the responsiveness and uptake of rural water policy across the irrigation sector.

The responsive policy will support a vibrant, productive and sustainable irrigation sector in Victoria, both on and off farm supporting wise water use, resilience to climate change and by managing the impacts of irrigated agriculture on behalf of the State.

Activities delivered include:

  • Continued work with the Commonwealth government, regional stakeholders and the community on the understanding and management of socioeconomic impacts of further water recovery under the Basin Plan on communities. A key highlight includes development of the Victorian Government’s ‘Planning our Basin future together; a prospectus to safeguard Victoria’s environments and communities in the Murray-Darling Basin’, released in May 2024. This outlines Victoria’s strategic approach to further water recovery in the context of the legislative changes made by the Commonwealth. During development of the Prospectus, RWP led extensive community and stakeholder engagement.
  • Completion of a feasibility study into reconfiguration options for the Broken system involving consultative committee co-designed project principles and extensive community engagement.
  • Continued coordination of the Solar Guideline process and contributions to key renewable energy-related policy and planning initiatives to ensure alignment with state planning policy on the protection of declared irrigation districts.
  • Policy input to the Central and Gippsland Region Sustainable Water Strategy (CGRSWS). This included formulating and facilitating the development of agricultural water-related policy responses and actions for inclusion in the CGRSWS.
  • Extensive land and water use mapping conducted across key irrigated landscapes in Victoria through the Regional Integrated Land and Water Use Mapping Program (RILWUM) - showing significant land use change over time. Valuable data collection and information sharing achieved through the RILWUM is helping to identify trends and emerging risks to maintain management frameworks that are fit for purpose.
  • Completion of the Irrigator’s Share Distribution (ISD) project, delivering 77.68 GL of water recovered under the Connections Project to eligible delivery shareholders in the Goulburn Murray Irrigation District. The project was undertaken in close collaboration with Goulburn-Murray Water and irrigation stakeholders.
  • Reviewing and remaking the Lake Eildon Houseboat regulations in June 2024 following extensive government agency, stakeholder and community engagement.

Page last updated: 28/10/24