1. What is an environmental entitlement?

An environmental entitlement is the legal instrument held by the Victorian Environmental Water Holder to allocate water to the environment for the purpose of maintaining the environmental water reserve or improving the environmental values and health of water ecosystems.

An environmental entitlement defines the amount of water that can be taken and the conditions under which it can be taken.

2. Why has the Macalister River Environmental Entitlement 2010 been amended?

Southern Rural Water is currently undertaking a modernisation project in the Macalister Irrigation District, known as the Macalister Channel Automation Project (the Project). The Project is funded by the Commonwealth Government through the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) and all water savings from the Project are being converted into an environmental entitlement under the Macalister River Environmental Entitlement 2010.  This follows initial Victorian Government investment in Macalister Irrigation District modernisation.

Prior to this amendment, the Macalister River Environmental Entitlement 2010 recognised water savings achieved though the Victorian investment (5,149 ML annual average) and a progressive allocation for the Commonwealth investment (3,000 ML annual average).  These annual average savings had been converted into 7,111 ML of high-reliability entitlement and 3,555 ML of low-reliability entitlement.

An independent audit has confirmed that 5,561 ML annual average water savings have been achieved, to date, under the Commonwealth investment.  Hence, the latest amendment recognises the additional 2,561 ML annual average water savings.  The additional water savings have been converted into 2,235 ML high reliability entitlement and 1,117 ML low reliability entitlement.

The total water savings now recognised in the Macalister River Environmental Entitlement are 9,346 ML high reliability entitlement and 4,672 ML low reliability entitlement.

A further amendment to the entitlement will be required at the completion of the Macalister Channel Automation Project to recognise the final savings volume, once this has been assessed and verified. This is expected to occur in 2012.

The Macalister River Environmental Entitlement 2010 also had a minor amendment to ensure all of the environmental entitlement is unrestricted now that the qualification of rights for Melbourne has expired (1 September 2010).

3. What is the full extent Macalister Channel Automation Project?

The Project involves the full automation of the Main Eastern Channel and the part automation of the Main Southern Channel in the Macalister Irrigation District.

The Commonwealth government is investing over $19 million in the Project which is expected to yield a total of 9,131 ML of annual average water savings.  Hence, a further approximately 3,570 ML of water savings are expected to be converted into environmental entitlement at completion of the Project.

The assessment of these final savings will be conducted in 2012.

4. How will the water be used for the environment?

The Macalister system provides fresh water flows into the lower Latrobe River and to the Gippsland Lakes and surrounding wetlands as well as being home to a threatened fish species, the Australian grayling.  The Victorian Environmental Water Holder will use the water held in this entitlement to enhance the environment values and health of the Macalister River system by improving habitat for aquatic species, maintaining fish passage and assisting spawning and migration of priority fish species, particularly the Australian grayling.

6. What is the reliability of the recovered water?

The water savings have been converted on an equivalent basis to other entitlements.  The conversion of average annual water savings into high and low reliability entitlement is based on modelling (seasonal allocation of 114.6% of high reliability water shares) and the unbundling rules (conversion ratio for high to low reliability of 1:0.5).

Year to year the volume of water available under these entitlements will vary depending on the seasonal allocation for the Macalister system and this will result in the environment using an average of 2,561 ML per year.

7. Will the amendment to the environmental entitlement reduce the reliability of supply to irrigators in the Macalister Irrigation District?

No. The transfer of water savings to the Victorian Environmental Water Holder will not impact on existing rights or entitlements held by irrigators and diverters in the Macalister Irrigation District. The water savings which are being converted into new entitlement would previously have been lost through evaporation, leakage or other system losses.

8. How can I be certain that the water savings are actual savings and not part of my water shares?

The savings were calculated by Southern-Rural Water using a method consistent with the Victorian Water Savings Protocol. The calculated water savings were then verified by an independent auditor. This process will ensure that the savings returned to the environment accurately reflect the irrigation system’s improved long-term performance and are sourced exclusively from reduced losses through modernisation works.