Commonwealth Resilient Rivers Water Infrastructure Program

Overview

The Australian Government has made up to $494 million in funding available for the Resilient Rivers Water Infrastructure Program (RRWIP). The program is designed to invest in infrastructure and provide water for the environment. The recovered water will count toward the additional 450 gigalitres (GL) of water recovery above the Basin Plan’s 2,750 GL target. All RRWIP project applications must be made by Basin state governments.

Funding and criteria

The RRWIP funding comes from the Water for the Environment Special Account. Funding will be provided over four years from 2023-24. Any water recovery project funded through the Water for the Environment Special Account must only occur with neutral or positive socio-economic outcomes for communities.

At the Murray-Darling Basin Ministerial Council meeting in December 2018, Victoria secured an agreement that socio-economic criteria be adopted as the basis for assessing the socio-economic outcomes of efficiency measures projects.

Changes made to the Basin Plan in 2023

Changes were made to the Basin Plan in 2023 without the support of the Victorian Government. These changes mean that the 450 GL of additional water for the environment can now be recovered in ways that have negative social and economic impacts on communities (e.g. open tender water purchases).

Victoria's prospectus

The Victorian Government developed the Planning our Basin future together prospectus in response to these changes to the Basin Plan.

The prospectus sets out our principles to guide further water recovery in Victoria. Key to this approach is making sure that any water recovery benefits Victorian waterways and landscapes and supports a sustainable future for irrigators and communities.

**Table 1. Principles for further water recovery in Victoria**
Principle	Why it matters
Demonstrated environmental benefits in and for Victoria	Victorian landscapes should benefit from water recovery. While progress has been made on rehabilitating our riverine landscapes, there is more to do. Our rivers are heavily regulated, and we need a strategic approach, including complementary works like fishways and removing unnecessary infrastructure. Without this, further water recovery will have little benefit for our rivers, and in some instances will pose risks for rivers, wetlands, and floodplains.
Minimised impact on water availability for towns, industries and agricultural production	Water availability for things like agriculture, industries, sports grounds and parks and urban drinking supplies is the foundation of northern Victorian communities. A strategic approach to water recovery that recognises these important values will give us the best chance of supporting strong, resilient, and thriving industries, towns and the communities they support.
Proactive structural change to support a sustainable future for irrigators and communities	As water availability and ownership changes across northern Victoria, it is more important than ever to have upfront transparency and understanding of the costs, benefits, and long-term viability of irrigated systems. This will mean that water users will have the infrastructure they need and can remain an important part of their regional economies for a long time to come. Regional development goals will be incorporated, so that the long-term benefit of any change lines up with where our regions are heading in the future.
Meet our legal obligations and support progress towards Traditional Owner self-determination in water access and management	Victoria has a commitment to supporting Traditional Owner self-determination to access and hold water and influence water management. Victoria will fulfil our obligations to Traditional Owners as per the United Nations Declaration on the Rights of Indigenous People, Commonwealth and State legislation, and relevant settlement agreements between the Victorian Government and specific Traditional Owner groups. We will work in partnership with Traditional Owners in a manner consistent with government polices including Water is Life and DEECA’s Aboriginal Self-Determination Reform Strategy - Papangarli Marnmarnepu to ensure that when major projects or changes are considered, we incorporate Traditional Owner knowledge and outcomes up front, making the most of all opportunities.

The Department of Energy, Environment and Climate Action (DEECA), Water Corporations and Catchment Management Authorities (CMAs) have been identifying potential water recovery opportunities in Northern Victoria that align with our principles for further water recovery.

Several water recovery projects in Northern Victoria have been identified. The Victorian Government has applied for funding from the Commonwealth to complete feasibility studies and business cases for these projects.

Read more about the what's next for the Planning our Basin future together prospectus.

Victoria’s independent analysis of social-economic impacts

Victoria’s independent analysis showed that programs with entitlement transfers can't avoid negative socio-economic impacts. This is particularly true for negative impacts on water markets and increased risks of stranded assets.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) confirmed these findings.

Victoria’s socio-economic assessment process has been updated following the changes made to the Basin Plan by the Commonwealth in 2023 that mean water recovery projects can now include entitlement transfers.

Socio-economic assessment of water recovery projects

Socio-economic assessment of all proposed Victorian water recovery project proposals will be undertaken by the Victorian Government, prior to being submitted to the Commonwealth for funding.

Proposals will be assessed against the socio-economic criteria and the principles for further water recovery in Victoria.

The key elements of the socio-economic criteria are:

the validity of water savings
potential impacts on water prices
community and industry engagement
the future viability of proponent businesses and irrigation districts
expected socio-economic, environmental and cultural outcomes
third-party impacts on irrigation districts, water market, local communities, regions and Victoria
integrated implementation opportunities
improving resilience to climate variability and drought.

Victorian Government's assessment process

Proponents submit project proposals (business cases) to DEECA.
DEECA assesses the proposal to check that the socio-economic criteria and principles for further water recovery are addressed and requirements met.
If DEECA determines additional information is required to address the socio-economic criteria and principles for further water recovery, proponents will determine how to proceed.
DEECA provides the proposal along with information about how the proposal addresses the socio-economic criteria and principles for further water recovery to the Victorian Minister for Water.
The Minister for Water reviews the proposal and decides whether to submit the proposal to the Commonwealth for funding.
If the Minister for Water decides to submit the proposal to the Commonwealth for funding consideration, information about the proposal and the statement of reasons will be published on DEECA’s website.
The Commonwealth will then make funding approval decisions and contractual agreements. The outcomes of these decisions will be published on DEECA’s website.

Prior to submitting project proposals (business cases) to DEECA for assessment proponents will make information about the project available online. This will provide the opportunity for stakeholders to make submissions. Links to project websites will be added to the DEECA Planning our Basin future together prospectus page.

Submission Process

Socio-economic assessments

Projects submitted to the Victorian Government for socio-economic assessment and the outcome of these assessments under the former Off-farm Efficiency Program are recorded below.

Projects that proceeded to public consultation and were approved

Type of project: Off-farm
Location: Goulburn-Murray Irrigation District
Environmental water recovery:15.9 GL Long Term Average Annual Yield (LTAAY)
Outcome of assessment: The proposal proceeded to public consultation on Engage Victoria website. The proposal was determined to be compliant with the socio-economic criteria and submitted to the Australian Government for funding consideration.

Type of project: Off-farm
Location: Sunraysia irrigation districts
Environmental water recovery:1.8 GL Long Term Average Annual Yield (LTAAY)
Outcome of assessment: The proposal proceeded to public consultation on Engage Victoria website. The proposal was determined to be compliant with the socio-economic criteria and submitted to the Australian Government for funding consideration.

Projects that proceeded to public consultation and were not approved

Projects that did not proceeded to public consultation

Type of project: Off-farm
Location: Goulburn-Murray Irrigation District
Water recovery:2.25 GL HRWS
Outcome of assessment: The proposal was returned to the proponent. The proposal submitted to the department did not meet the requirements to proceed to public consultation.

More information

Resilient Rivers Water Infrastructure Program.

You can also contact us at mdb.waterefficiency@deeca.vic.gov.au.

Page last updated: 27/11/24