1. What is a bulk entitlement?

A bulk entitlement is a legal right to water granted by the Minister for Water under the Water Act 1989 (the Act).

Bulk entitlements are legal instruments commonly held by water corporations that set out how much water the holder is entitled to take to supply its customers and the conditions around taking that water.

2. What has Coliban Water applied for?

Coliban Water has applied to the Minister for Water, the Hon Peter Walsh, MLA, to convert its pre-existing rights to take water for the township of Trentham to a bulk entitlement.

The Trentham supply system dates back to 1911.  Coliban Water took over operation of the Trentham supply system from the Kyneton Water Board in 1992.  Coliban Water has requested an average entitlement of 120 megalitres (ML) per year over a three-year period for Trentham.

The proposed entitlement volume is based on the best available records of the towns’ historic water supply needs, and are considered to be representative of the townships’ level of development in 1993/94, consistent with the principles for formalising historic entitlements under the Murray-Darling Basin Cap on diversions.  The conversion of this entitlement will not affect other entitlement holders within the Campaspe basin as it recognises an existing diversion and will not result in an increase of current diversions.

3. Why convert pre-existing rights to a bulk entitlement?

Prior to the introduction of the Water Act 1989, rights to water were poorly defined, making it difficult to share water fairly during times of drought, protect the environment or other peoples’ rights in a water system or establish trade. The program to convert water corporations’ historic rights to water to bulk entitlements began in 1993.  Many of Goulburn Valley Water’s urban bulk entitlements were amongst the first bulk entitlements created in 1995.

The aims and benefits of the bulk entitlement conversion program include:

• Water corporations have a clearly defined right to water enforceable at law;
• Water corporations have the flexibility to manage within their entitlements;
• There is basis for sharing limited water resources, protecting the entitlements of other users and protecting in-stream values;
• Better defined rights facilitates water trading between user groups to ensure an appropriate redistribution over time of finite water resources; and
• Establishing clear metering and reporting responsibilities within bulk entitlements supports the collection of data on resource availability and utilisation, such as demonstrating compliance with the Murray-Darling Basin Cap;
• Bulk entitlements are the central part of Victoria’s Water Resource Plans for areas of the State within the Murray-Darling Basin.  To be compliant with the Commonwealth Water Act 2007, Victoria must have accredited Water Resource Plans;
• There is a clear statutory process for amending bulk entitlements; should the holder need to alter their entitlement.

The vast majority of Victorian water supply systems have bulk entitlements and environmental entitlements in place that define the rights to water held by the relevant authorities (i.e. water corporations, power companies, Environmental Water Holder).  DSE is working with stakeholders to develop bulk entitlements for a few small systems that remain without bulk entitlements, in the Goulburn, Campaspe and Wimmera basins.

4. Will this entitlement provide enough water for Trentham into the future?

Coliban Water is currently developing a Water Supply Demand Strategy for all of its systems including Trentham.  This strategy will determine likely future water supply, demands and shortfalls and the timing of any required augmentations over the next 50 years.  Trentham is presently growing steadily however the future growth rate is somewhat uncertain.  It is expected that this Bulk Entitlement (120 ML), combined with Coliban Water’s Groundwater Licence (48 ML) should satisfy the needs of the Trentham system for at least 10 or more years.  For further information visit Coliban Water’s website.

5. What happens next?

The Minister for Water will consider Coliban Water’s application, taking into account the requirements of the Act. Subject to the Minister for Water’s approval, the bulk entitlement for Trentham will come into effect when it is published in the Government Gazette.

6. Can I make a submission to the Minister on the application?

The Minister for Water has not called for submissions, due to the pre-existing nature of the right.

However the Minister will consider any comments received from the public on the application.

Written submissions can be emailed to water.be@dse.vic.gov.au or mailed to:

Executive Director, Water Resources Division
Department of Sustainability and Environment
PO Box 500
East Melbourne VIC 8002

7. Where can I find out more about Coliban Water's application?

For more information on the application please contact the DSE Customer Service Centre on 136 186.

Find out more about Victoria’s water allocation framework.