When an area is declared a Water Supply Protection Area (WSPA), a management plan must be developed and implemented. This occurs when licence conditions need to be amended mid-term and/or permanent restrictions are imposed because there is a risk to the resource. The objective of a management plan is to ensure groundwater resources are managed equitably and sustainably. The process for developing a management plan is set out in Section 32 of the Water Act (1989).

In Groundwater Management Areas (GMAs) where a management plan is not required, but the resource needs to be carefully managed, management rules can be developed. Local management rules are being introduced to improve transparency of resource management. They describe the resource, management objectives and specific rules for such things as restrictions in times of shortage, carryover (if applicable) and trade. Local management rules cannot amend licence conditions.

In some cases the need for the area to be a WSPA with a management plan is being reconsidered. In these cases local management rules will be developed instead. This has occurred in the Mid-Loddon WSPA in Northern Victoria. Local management rules have been approved by the local water corporation board and it is proposed that the WSPA will be abolished and that the area will be regazetted as a GMA with a Permissible Consumptive Volume.