As the widespread drought continues and pressures on Victorian water resources increase, greater attention is being given to how much water is used by industries in Victoria and for what purpose. In recent years, the concept of 'virtual water' has been used by some parts of the water sector to assist in considering the total water used in producing a good or service and to contribute to a broader understanding of the total water cycle.

To help stimulate discussion, debate and ideas on water use within Victoria, through the Smart Water Fund, the VWT has funded a study titled The Virtual Water Cycle of Victoria. This report is a starting point, not an end point. There are clear limitations and risks associated with the concept of virtual water that must be well understood. This report does not represent the views of the VWT Advisory Council nor does it represent Government policy.

The Virtual Water Cycle of Victoria (PDF~2.6MB)

The Victorian Department of Primary Industries has also commissioned a study into the concept of 'virtual water'. The findings are contained in the report The concept of ‘virtual water’ – a critical review (Frontier Economics, 2008), which can be accessed on the DPI website.