On this page:
This is Victoria’s ninth consecutive annual non-urban water compliance report.
Victoria has a zero-tolerance approach to the unauthorised take of water. This maintains a level playing field for all water users, preserving the integrity of Victoria’s water entitlements framework.
Water corporations play a key role in securing the rights of all water users as well as safeguarding the state’s water resources. They have a range of tools to ensure compliance, and they are empowered to investigate and prosecute breaches of the Water Act. Additionally, they work directly with water users as the first step in supporting compliance.
This report details Victoria’s compliance and enforcement activities for the 2022-23 reporting period.
A breakdown of compliance activities over 2022-2023
- In 2022-23, there were 2,186 detected alleged breaches of the Water Act 1989. 1,383 detected breaches were investigated, of which, 1,133 investigations were finalised. The most common detected breach was the unauthorised take of water.
- 1,381 enforcement actions were taken in 2022-23, including 28 verbal warnings, 1,218 advisory and warning letters, 106 statutory notices, 1 restriction of water supply and 6 cases recommended for prosecution.
- In July 2020, Victoria introduced new regulations that enable water corporations to issue penalty infringement notices (fines) for less serious offences, such as low volumes of unauthorised take of water of up to ten megalitres without court proceedings. In 2022-23, there were 19 fines issued.
- The number of enforcement actions has decreased compared with the previous year. One factor influencing this may be the relatively high-water availability across the state. In declared water systems in 2022-23, seasonal determinations for high-reliability entitlements reached 100% in all systems.
- Other factors that contributed to low enforcement include better use of data and efficiency, targeting risks earlier, and greater proactive communication with water users concerning compliance risks. Most water users are now taking immediate action to remedy the unauthorised take of water, when initially notified and issued with a verbal warning, written advisory or warning letter.
- Approximately 86% of all detected potential breaches detected were in northern Victoria, which is commensurate with the higher number of water users and licence holders in the region and the elevated level of activity in the water market every year.
Compliance activities and enforcement action statistics 2022-23
Water corporations report annually on their compliance and enforcement activities in accordance with clause 7.3A of their Statement of Obligations. The following state-wide statistics have been compiled for the 2022-2023 reporting period.
Compliance activities
Non-urban metering is essential for comprehensive compliance reporting. In 2022-2023, water corporations continued to invest in installing new meters, installing telemetry on meters, and improving database management systems to enable better monitoring of water take, as well as greater scrutiny of potential breaches.
As of 30 June 2023, Victorian water corporations have 52,565 meters installed, about 31,207 of which have telemetry.
43,766 manual meter reads were conducted in 2022-23, and 25,111 additional inspections were done to ensure that meters were maintained and functioning efficiently.
Water corporations reported that they detected 2,186 potential breaches of the Water Act between in 2022-23. Unauthorised take of water remains the dominant category of potential breaches.
Water corporations commenced 1,383 investigations and finalised 1,133 investigations (including potential breaches carried forward from the previous year).
Number of potential breaches detected and investigations
| Potential breaches detected | Investigations commenced | Investigations finalised | |
|---|---|---|---|
| 2019-20 | 2414 | 2433 | 2155 |
| 2020-21 | 1193 | 722 | 728 |
| 2021-22 | 3990 | 3397 | 3340 |
| 2022-23 | 2186 | 1383 | 1133 |
Approximately 86% of all potential breaches detected were in the northern region of Victoria, which is commensurate with the higher number of water users and licence holders in the region and the elevated level of activity in the water market every year.
Number of detected breaches by area
| Potential breaches detected | Investigations commenced | Investigations finalised | |
|---|---|---|---|
| Northern Victoria | 1870 | 1068 | 1053 |
| Southern Victoria | 316 | 315 | 80 |
| Total | 2186 | 1383 | 1133 |
Summary of detected breaches by offence
Unauthorised take of water remains the dominant category of reported potential breaches.
Enforcement actions
Victorian Water corporations can take multiple enforcement actions under the Water Act 1989.
Water corporations have a range of enforcement options available. Verbal warnings and advisory letters are the first enforcement action taken in response to a breach, followed by a formal warning letter, notice of contravention, reduce, restrict or discontinue of water supply, penalty infringement notice (fine) and/or prosecution.
From 1 July 2020, water corporations can issue water penalty infringement notices (fines) for less serious offences such as low volumes of unauthorised take of water of up to ten megalitres without court proceedings. In 2022-2023, 19 penalty infringement notices were issued. Water corporations may take more than one enforcement action if the water user does not rectify the breach after one enforcement action.
Between 1 July 2022 to 30 June 2023, water corporations took 1,381 enforcement actions against breaches of the Water Act 1989.
The number of enforcement actions have decreased compared with previous years. This can be attributed to increased water availability, above average rainfall, the better use of data and systems to improve efficiency, targeting compliance risks earlier, and greater proactive communication with water users about compliance. In 2022-23 all declared river systems received 100% allocation for high and low reliability entitlements.
Additionally, most water users are taking immediate action to remedy the unauthorised take of water, when initially issued with a verbal warning, written advisory, or warning letter.
In 2022-23, 90% of the enforcement actions taken were verbal warnings, advisory letters, or formal warning letters. Approximately 98% of all enforcement actions taken were in the northern region of Victoria, which can be attributed to the proportionally large amount of water users and licence holders.
Summary of enforcement actions taken between 1 July 2019 to 30 June 2023
Enforcement actions taken in Northern Victoria and Southern Victoria from 1 July 2022 and 30 June 2023
| Northern Victoria | Southern Victoria | |
|---|---|---|
| Verbal warning | 4 | 24 |
| Advisory letter | 5 | 1 |
| Warning letter | 1204 | 8 |
| Notices | 106 | 0 |
| Lockdown | 1 | 0 |
| Recommended for prosecution | 6 | 0 |
| Referred to other agencies | 1 | 2 |
| Penalty infringement notices | 19 | 0 |
| Total | 1346 | 35 |
Verbal warnings
Victorian water corporations issued 28 verbal warnings in the 2022-23 reporting period. Verbal warnings were predominantly given for the unauthorised take of water. Most verbal warnings issued were remedied by the water user, and an application was lodged for the continued use of water.
Advisory letters
Advisory letters typically the first level of enforcement action taken by water corporations in relation to a breach. We note that some water corporations do not issue advisory letters. 6 advisory letters were issued for 2022-23.
Warning letters
This may be the first response for some water corporations, instead of advisory letters. Water corporations issued 1212 warning letters.
Notices
Water corporations may, by notice in writing, to a person who contravenes the Water Act 1989, regulations or recreational by-laws, issue a notice requiring that person (or body corporate) to take action to remedy the contravention. The following notices were issued in 2022-23 for the following contraventions:
Reduce restrict or discontinue water supply
In 2022-23, there was only 1 lockdown of water supply. Most water users are taking immediate action to remedy their unauthorised take of water. However, water corporations have the power to lock down outlets, in the event of more serious breaches of the Water Act. A water corporation may reduce or restrict the quantity of water supplied to any person, or discontinue the supply of water, under section 141 of the Water Act 1989 to prevent continuing water theft.
Penality infringement notices (fines)
Water corporations have the authority to issue penalty infringement notices (or fines), without court proceedings. Penalty infringement notices are issued to penalise and deter water users from contravening the Water Act 1989. From 1 July 2023, the maximum fine is $2,307.72 for individuals and $11,568.60 for body corporates.
In 2022-23, 19 penalty infringement notices were issued in Victoria. The maximum financial penalty issued for 2022-23 was $2,073.60, the minimum was $211.60, with a median of $779.60, averaging $617.17.
Number of penalty infringement notices and volume of detected unauthorised take
Prosecutions
There were 22 prosecutions between 1 July 2022 to 30 June 2023, including 5 cases that were carried over from the previous year.
Summary of prosecutions between 1 July 2022 to 30 June 2023
Prosecutions finalised
The following provides more details about prosecutions that were finalised between 1 July 2022 to 30 June 2023 and prosecutions that will be carried forward to the next year.
Prosecutions carried forward into the 2023-24 financial year
4 prosecutions are carried forward into 2023-24 and are currently ongoing. The alleged breaches under the Water Act 1989 all took place within the Goulburn System, in the Shepparton Irrigation District and Rochester Irrigation District. All 4 prosecutions concern the unauthorised take of water (water theft) and interference with an Authority’s property under section 288 and 289 of the Water Act 1989.
| Sections of the Act | Basin | Date commenced |
|---|---|---|
| Unauthorised take of water and interference with authority's property (section 288 and 289) | Shepparton Irrigation Area Goulburn System | 14 October 2022 |
| Unauthorised take of water and interference with authority's property (section 288 and 289) | Shepparton Irrigation Area Goulburn System | 14 October 2022 |
| Unauthorised take of water and interference with authority's property (section 288 and 289) | Shepparton Irrigation Area Goulburn System | 14 October 2022 |
| Unauthorised take of water and interference with authority's property (section 288 and 289) | Rochester Irrigation Area Goulburn System | 14 October 2022 |
Priorities for 2023-24
The Department of Environment, Energy and Climate Action (DEECA), together with water corporations, is committed to a zero-tolerance approach to water theft so that there is a level playing field for all water users. We are committed to ensuring that Victoria has a strong and robust compliance and enforcement system with checks and balances in place that helps maintain – and continues to build – confidence in the market. This year, we have 4 priority areas for 2023-2024 and 3 ongoing priorities.
Priority areas for 2023-24
- Embedding compliance risk based planning and proactive monitoring approach into the regulatory regime.
- Building regulatory capability of staff by providing compliance training and operational procedures for safe, efficient, and consistent work practices.
- Implementing the Water (Infringement) Regulations 2020 and the Water and Catchment Legislation Amendment Act 2021 'Place of Take' changes.
- Establishing a consistent approach to monitoring small catchment dams with licencing and construction obligations.
Ongoing priorities
- Implementing a consistent zero-tolerance approach to addressing unauthorised take.
- Delivering on metering action plans and the Non-urban Water Metering Policy including applying telemetry cost benefit analysis where required.
- Regularly and consistently engaging and communicating with the public about water compliance.
Page last updated: 25/01/24