1. What has Goulburn Valley Water applied for?

Goulburn Valley Water has applied to the Minister for Water, the Hon Peter Walsh, MLA, to convert its pre-existing rights to take water for the townships of Molesworth and Strathbogie to bulk entitlements.  

Rather than create a new bulk entitlement with the same rules, Goulburn Valley Water has proposed to amend its Bulk Entitlement (Alexandra) Conversion Order 1995 to include the volume and extraction point for Molesworth downstream of Alexandra.  GVW took over the operation of the Molesworth supply system from Murrindindi Shire Council in 1997; however, the conversion process for Goulburn Valley Water’s other urban bulk entitlements in the regulated Goulburn system had already taken place in 1995.

Water for Strathbogie is sourced from Seven Creeks, and will require the creation of a new bulk entitlement with rules specific to the existing supply system, volume of water and the location of the extraction point.  Goulburn Valley Water took over operation of the Strathbogie supply system from Strathbogie Shire Council in 1999, which was after the original conversion process for Goulburn Valley Water’s other unregulated urban bulk entitlements in 1997.

Goulburn Valley Water has requested a 15 megalitre (ML) entitlement for Molesworth and a 21.5 ML entitlement for Strathbogie.  These volumes are based on the best available record of the towns’ historic water supply needs.  The proposed volumes 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 these entitlements will not affect other entitlement holders within the Goulburn basin as they will not result in an increase in diversions from the waterways.

2. What is a bulk entitlement?

A bulk entitlement is a legal right to water granted by the Minister for Water under Division 4 of 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.  

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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, ongoing right to water consistent with the current framework of entitlements.
• There is basis for sharing limited water resources, protecting the entitlements of other users and protecting in-stream values.
• Well defined rights facilitates water trading between user groups to ensure an appropriate redistribution of finite water resources over time.
• Establishing clear metering and reporting responsibilities within bulk entitlements supports the collection of data on resource availability and utilisation, such as the Victorian Water Accounts or 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. What is the Bulk Entitlement (Alexandra) Conversion Order 1995?

The Bulk Entitlement (Alexandra) Conversion Order 1995 (the Bulk Entitlement) is the Goulburn Valley Water’s legal entitlement to take water from the Goulburn River for the township of Alexandra.  A copy of the Bulk Entitlement can be viewed on the Victorian Water Register.

The inclusion of the Molesworth extraction point and volume in the Bulk Entitlement will ensure consistent application of rules and procedures associated with taking water from the Goulburn River. 

For example, this Bulk Entitlement includes:

• rules about when and where water can be taken and in what volume
• the security associated with the entitlement
• obligations to contribute to the payment of operation and maintenance costs
  
• accounting and reporting obligations.
  

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5. Does the inclusion of Molesworth in the Alexandra bulk entitlement affect other entitlements to water in the Goulburn River?

No.  This amendment formalises the historic use of this water for the township of Molesworth in a legal entitlement that will ensure access to this water can continue into the future, and does not constitute a new diversion from the Goulburn River.  The formalisation of the Molesworth diversion within Victoria’s water allocation framework will enable better accounting of water use in the Goulburn system in the longer term, with benefits to all water users in the system.  

6. Will the creation of a bulk entitlement for Strathbogie affect other entitlements to water in Seven Creeks?

No.  The creation of a new bulk entitlement will recognise an historic right to water from Strathbogie, and does not constitute a new diversion from the system.  The new entitlement will formalise the rules about when and where water can be taken, establish mechanisms for ensuring compliance, and will improve reporting and accounting of water resources in the Goulburn basin.

7. What happens next?

The Minister for Water will consider Goulburn Valley Water’s applications, taking into account the requirements of the Act.  Subject to the Minister for Water’s approval, the bulk entitlement amendment for Molesworth and the new bulk entitlement for Strathbogie will come into effect when they are published in the Government Gazette.

8. Can I make a submission to the Minister on the applications?

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 applications.

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
Level 10/8 Nicholson Street
East Melbourne VIC 3002

9. Where can I find out more about Goulburn Valley Water’s application?

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

Find out more about Victoria’s water allocation framework.

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