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What is an environmental entitlement?

An environmental entitlement is a legal right to take and use water granted under the Water Act 1989 for the purpose of maintaining an Environmental Water Reserve or improving the environmental values and health of the water ecosystems and other users that depend on environmental condition).

Who can hold an environmental entitlement?

Environmental entitlements can be held by the Victorian Environmental Water Holder (section 48B of the Act).

In addition to environmental entitlements, the Victorian Environmental Water Holder may hold other rights to water, such as bulk entitlements and water shares.

Rights and responsibilities under an environmental entitlement

In accordance with the section 48I of the Water Act 1989, environmental entitlements may specify a range of conditions and obligations.

  • Rules about when, where and how much water can be taken
  • Rules about the right to a share of storage capacity and share of inflows
  • Obligations to contribute to the payment of operation and maintenance costs
  • Obligations to metre, maintain accounts and report

Accessing environmental entitlement information

Environmental entitlements are recorded in the Victorian Water Register. You can access copies of the environmental entitlement orders on the Victorian Water Register.

How environmental entitlements are created

The Minister for Water can allocate environmental entitlements under the section 48B of the Act. In allocating an environmental entitlement, the Minister for Water must follow the administrative procedures set out in the Act.

Environmental entitlements were included in the Water Act 1989 via the Water (Resource Management) Act 2005. The Water (Resource Management) Act 2005 amended the Water Act 1989 to create the legal foundation for water to be set aside to maintain environmental values of rivers and streams. It is intended that environmental provisions embedded in existing bulk entitlements will be converted into environmental entitlements. Environmental entitlements form part of the Environmental Water Reserve.

The Environmental Water Reserve

The objective of the Environmental Water Reserve is to preserve the environmental values and health of water ecosystems, including their biodiversity, ecological functioning and quality of water and other uses that depend on environmental condition.

Environmental entitlements that form part of the Environmental Water Reserve enable active management of water to meet specific environmental needs, such as fish spawning triggers or maintaining critical habitat during drought.

Can environmental entitlements be traded?

Environmental entitlements may be transferred, in whole in part, under section 480A of the Act provided the Victorian Environmental Water Holder has applied for and obtained approval from the Minister for Water.

Water allocation made available under environmental entitlements may also be assigned to another person, under section 48L of the Act in accordance with the trading rules, provided the trade will benefit the objectives of the Environmental Water Reserve.

Can environmental entitlements be amended?

The Victorian Environmental Water Holder can request the Minister to amend an environmental entitlement under section 48K of the Act.

When the Minister for Water receives a request to amend an environmental entitlement, the administrative procedure set out in the Act must be followed. Key steps include:

  • Requests are advertised in local newspapers and on this website
  • the process may involve consultation with stakeholders and local communities and submissions to the Department of Energy, Environment and Climate Action. The purpose of the consultation is to identify the potential impacts of the proposal
  • the Minister for Water may call for submissions when a request is received, and will consider any submissions before making a decision; and
  • amendments are granted through an order from the Minister for Water or the Governor in Council and published in the Victorian Government Gazette.

Requests pending approval

Request for Thomson/Macalister System – Mitigation Water Environmental Entitlement 2024

The Minister for Water has received a request from the Victorian Environmental Water Holder (VEWH) for a new environmental entitlement ‘Thomson/Macalister System - Mitigation Water Environmental Entitlement 2024’, under section 48C of the Water Act 1989.

The environmental entitlement will provide VEWH with an enduring right to water to be used at local sites with high environmental value in the Thomson/Macalister water system, to mitigate the impact from the Southern Rural Water MID2030 irrigation modernisation project.

Submit comments by 21 June 2024.

Read the application letter

What is the SRW MID2030 modernisation project?

A key focus of the MID2030 Project has been to replace the Macalister Irrigation district’s ageing channel irrigation network with a modern piped system.

The Project was broken into phases to focus on work that would bring the greatest value in water savings and service improvements. The MID2030 Phase 1A project began in 2013 with works completed in 2017. Other stages planned under MID2030 are Phase 1B (2017- 2020) and Phase 2 (commenced in 2020 and is nearing completion).

Phase 1A has been incrementally audited since 2014. A final cumulative long-term water recovery audit was undertaken in late 2023 to confirm the final volume of water recovered from Phase 1A (approximately 13.3 GL).

Further information on the MID2030 modernisation project can be found at Macalister Irrigation District Modernisation | Southern Rural Water (srw.com.au) or at Investment in irrigation efficiency (water.vic.gov.au).

Why did the MID 2030 Modernisation project need to provide mitigation water to the environment?

Sometimes water in irrigation channels is discharged through outfalls and into wetlands and rivers, and provides an important environmental benefit. Improving the efficiency of the irrigation systems can reduce the volume of water that is spilled through these outfalls.

To mitigate this impact to the environment, SRW was required to develop Environmental Watering Plans (EWP) as per the Victorian Government Water Savings Protocol. The EWPs assessed environmental values and calculated the expected volume of mitigation water required to offset the impact of the implementation of the MID2030 Project. The EWPs identified that a volume of 1,814ML Long Term Average Annual Yield (LTAAY) is required to offset the impact to the Thomson and Macalister Rivers from the Project. This volume has been set aside as mitigation water, from the overall volume of water recovery achieved and audited by the project to date.

What has the VEWH requested?

The VEWH submitted a request to the Minister for Water, under section 48C of the Water Act 1989, for an environmental entitlement. The proposed environmental entitlement provides the VEWH with ongoing access to 1,814 ML LTAAY to be used at sites where an EWP identified that mitigation water was needed as a result of the MID2030 project. This volume converts to a 1,568 ML high-reliability water entitlement and a 691 ML low-reliability water entitlement. The proposed environmental entitlement also outlines, among other things, that the VEWH and SRW must prepare operating arrangements for the supply and use of this water.

How will the water be used?

The water will be used at sites where the MID2030 Project identified a need to mitigate impacts to local sites of high environmental significance. Specifically, the water will be used to meet ecological and hydrological values as identified in EWPs for the Thomson and Macalister Rivers.

The VEWH will work with the West Gippsland Catchment Management Authority to plan how the water is used each year.

Each year Catchment Management Authorities prepare Seasonal Watering Proposals. These are informed by community consultation, including consultation with local Traditional Owner groups, and consider local conditions. These proposals inform the Seasonal Watering Plan prepared by the VEWH each year. To ensure the water is used to get the most benefit, the VEWH considers advice from the Catchment Management Authorities and uses their local knowledge to inform its decision on how mitigation water will be applied.

How is water sourced to meet the new entitlement?

To ensure the issue of a new mitigation water environmental entitlement does not have an impact on existing entitlements in the Thomson/Macalister system, water recovery associated with MID2030 Project, including mitigation water, has been independently audited to ensure the entitlement being issued reflects actual water savings that have been achieved.

Total Project water savings are the total (gross) volumes saved, less the volume of mitigation water required.

What is the Water Savings Protocol and how is it used to calculate water recovery?

All water savings from major irrigation modernisation projects in Victoria, including the MID 2030 Project, must be estimated and audited in accordance with the Victorian Government Water Savings Protocol. The Water Savings Protocol is the technical manual for how to estimate water savings. It reflects current best practice for the estimation of water savings and is updated periodically to reflect improvements in technology and any changes in the understanding of irrigation system losses. It also sets out roles and responsibilities and specifies the audit process.

Estimating water recovery using the methods in the Water Savings Protocol ensures that the estimate is calculated in a consistent and transparent manner using the most current scientific information. This means it can be used as evidence to issue water recovery as entitlements.

The audit process requires an independent auditor to verify that the water savings estimates have been estimated consistent with the methods described in the Water Savings Protocol. The audit process provides confidence that the water savings are being estimated correctly.

The Minister for Water will consider the request from the VEWH, in line with the requirements of the Water Act 1989. Subject to the Minister for Water’s approval, the environmental entitlement will come into effect when published in the Victoria Government Gazette.

For more information on the VEW’s request, call 136 186 or email water.be@deeca.vic.gov.au.

The Minister will consider any comments received from the public on the application. Written comments can be emailed to water.be@deeca.vic.gov.au or mailed to:

Executive Director, Water Resources Strategy
Department of Energy, Environment and Climate Action
PO Box 500
East Melbourne VIC 3002

By 21 June 2024

Recently approved requests

New Goulburn System – Mitigation Water Environmental Entitlement Order 2023 and Murray System – Mitigation Water Environmental Entitlement Order 2023

The Minister for Water has approved a request from the Victorian Environmental Water Holder for two new environmental entitlements (Goulburn System – Mitigation Water Environmental Entitlement Order 2023 and Murray System – Mitigation Water Environmental Entitlement Order 2023) under section 48C of the Water Act 1989.

The new environmental entitlements will provide the Victorian Environmental Water Holder with an enduring right to water recovered by the Goulburn-Murray Water Connections Project, to mitigate the impact from the project to local sites with high environmental value.

The new environmental entitlements came into effect on 1 July 2023. View or download from the Victorian Water Register.

Page last updated: 07/06/24