Answers to the most commonly asked questions on the Dairy Shed Water Licence Transition Program. 

Background

1. Since when has a licence been required for water used in the dairy shed?

It has been a requirement since the Water Act 1989 was passed. The use of water in the dairy is a commercial use. It must be licensed. Dairy washdown is not covered by domestic and stock use, as defined in the Act. The definition of domestic and stock specifically excludes water use in dairies.

2. Why should I obtain a licence for water I use in the dairy shed?

By obtaining a licence your right to the water that you use is secured. It reduces the risk to your business. Your licence to use water is protected and can be taken into consideration by water corporations in future water allocation and licensing decisions. In most cases this licence is tradeable subject to the rules in your area.

You will also be fulfilling your legal obligations and will not be at risk of penalties under the Water Act 1989.

3. What is the Dairy Shed Water Licence Transition Program?

The Dairy Shed Water Licence Transition Program has been developed to ensure water used in the dairy shed – such as water for washing yards, milking equipment, platforms and other plant – is fully licensed.

The program includes an amnesty ending on 23 April 2010 during which you can apply to license water used in the dairy shed without penalty.

4. Who is running the program?

The Dairy Shed Water Licence Transition Program is a statewide program run by the Department of Sustainability and Environment and implemented by the water corporations (for contact details see Question 30).

It has been developed with input from the Victorian Farmers Federation, the Australian Dairy Products Federation (representing dairy processors) and water corporations.

5. Why is the program being run?

Dairy shed water use requires a licence. It is not a stock and domestic use, which do not require a licence. Many dairy farms currently have a licence for 2–4 million litres (ML) for water used in the dairy shed each year or do not have a licence at all. Information from the dairy industry, the Department of Primary Industries and rural water corporations shows that many dairies use significantly more than that in the shed each year. With 5169 dairy farms in the State, dairy shed water use is substantial and like all commercial water uses it must be licensed so that it can be accounted for and to improve the sustainable management of the resource.

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6. Why should I apply during the amnesty?

Applying during the amnesty period is a unique opportunity to be properly licensed for the water you use in the dairy shed and protect the water you need to run your business. Water resources in most areas are capped and in many areas are fully allocated. Additional water cannot be obtained from the rural water corporation by applying for a new licence.

If you don’t apply for a dairy shed licence during the amnesty, you will have to find a licence to buy on the market to cover your current dairy shed water use. Otherwise you will need to reduce your use to comply with your existing licence volume. By applying during the amnesty you will not face any penalties for past illegal use or overuse.

Eligibility

7. Does this affect me?

Owners of bovine, buffalo, goat or sheep dairies who use water in the dairy from a waterway, spring, soak, dam or a bore are eligible to apply. You do not need to apply if you:

• ONLY use water in your dairy shed that is rainwater collected from rooftops into tanks; or
• ONLY use water from an urban town supply in your dairy shed; or
• ONLY take water for use in your dairy shed from a channel or any other waterway which is part of a regulated water system (this water is used under a water share).

8. Can the application be completed by a sharefarmer or lessee?

The application must be completed by the owner of the land where the dairy is located. Most water corporations require a recent copy of the land title as proof of ownership to be included with the application. Please check with your water corporation if a recent copy of the land title is required.

9. How can I get a copy of my land title?

You can do a title search through the Land Victoria website or contact the Land Information Centre on (03) 8636 2831. The centre is located at Level 10, 570 Bourke Street, Melbourne and is open from 8:30am-4pm, Monday to Friday.

Farm Dams

10. What does it mean to have a registered farm dam?

Farm dams, used for commercial and irrigation purposes, have needed to be licensed since the Irrigation (Farm Dams) Act was passed in April 2002.

If you registered your dam in 2002 you would have obtained a registration licence. This registration licence was issued at no cost and is exempt from annual charges.

Registration licences for farm dams can no longer be issued

11. How can I find out if my dam is registered?

If you do not have a copy of a registration licence contact your water corporation to find out if your dam was registered.

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12. Do I have to do anything if I use water from a registered farm dam?

You only need to apply under the amnesty if you use more water in your dairy shed than the volume stated on your farm dam registration licence.

In this case, you will be issued a licence for your dairy shed water use, which has an annual charge. Contact your water corporation for more information on this.

13. Do I need to licence all dams I use water from?

No, it is the water you use in your dairy that must be licensed not the dam.

14. What if I use the water from my dam for dairy shed purposes and have not registered the dam?

It is no longer possible to obtain a registration licence for dams. If your dam is not registered you can apply for a section 51 take and use licence without penalty under this program.

Bores

15. What is a bore construction licence?

A bore construction licence is required to allow a licensed driller to construct a bore. You may not have seen this if your bore is an old bore. A bore construction licence does not permit you to take water from the bore for commercial use. If you use water from the bore in your dairy shed, you need to apply for a licence under the amnesty.

16. My bore is registered. Do I still need to apply?

Bore registration is simply a record of your bore and the driller’s report. You still need to licence water taken from your bore for use in your dairy shed.

Water source

17. I use water from a river and a bore can this be covered by one licence?

No. A separate licence is required for each source of water. You only need to fill in one application form - in question 5 of the application form you can tick a box to indicate what you need.

18. If there is a water shortage, will my licensed dairy shed water use be affected by water restrictions?

Water restriction policies are determined by the water corporation however, normally water used in the dairy is exempt.

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Metering

19. Will I have to get a meter for the water used in my dairy shed?

You might need to install a meter, in accordance with your water corporation’s current metering policies. Contact your water corporation for more information (see Question 30).

Costs

20. How much does the licence application cost?

Contact your water corporation for information on application fees and ongoing annual licence charges. (see Question 30 for contact details).

21. What does the annual licence fee for using water from my dam/s pay for?

Resource management is necessary to protect the rights of existing users, the environment and resource sharing during times of shortage. The annual licence fee enables water corporations to manage the resource with the aim of protecting your right as a licensed water user.

22. What can I do if I cannot afford the application fee or ongoing charges?

Water corporations are committed to ensuring you use this opportunity to secure your right to water currently used in your dairy. Contact your water corporation to discuss payment options. (see Question 30).

Application process

23. How do I apply to license my dairy shed water use under the amnesty?

The steps are outlined in the Dairy Shed Water brochure and application form (available online).

Your completed application must reach your water corporation by 23 April 2010 to be eligible for the amnesty.

24. How do I calculate how much water is used in my dairy shed?

You can:

• Use DPI’s booklet Dairy shed water – How much do you use? (Available from the DPI website)
• Call 136 186 and ask to be put through to a DPI Dairy Extension Officer for advice
• Ask for advice from dairy company or water corporation staff you deal with.

25. What water sources should be included when estimating the volume of water used in the dairy shed?

For dairy shed licensing purposes, the only water sources to exclude from your calculations are rain water (collected in a tank) and town water sources and water sourced from a regulated water system.

DPI’s booklet Dairy shed water – How much do you use? (available from the DPI website) steps you through all the activities in the dairy shed that should be included when estimating the total volume used in the dairy shed.

However, it encourages you to count all water sources, so be sure to deduct the amounts sourced from rain water, town water and regulated water supplies before filling out your licence application form.

If you need help using the booklet call 136 186 and ask to be put through to a DPI Dairy Extension Officer.

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26. What happens after I’ve applied to license my dairy shed water use?

With 5169 registered dairy farms in Victoria, the Dairy Shed Water Licence Transition Program will take at least two years to implement.

After you apply, you will receive verification of your application from your water corporation.

The corporation might also contact you to arrange an inspection. This could happen for a range of reasons, such as if you apply for significantly more water than ‘reasonable use’, as set out in the workbook Dairy shed water – How much do you use? (Available from the DPI website).

The workbook is also available from the DPI website.

27. Once my dairy shed water use has been licensed, how long do I have to comply?

Compliance time will be set by your water corporation and included in the conditions of your licence. Contact your water corporation for more information (see Question 30).

28.What happens if I miss the amnesty period?

The amnesty ends on 23 April 2010. If you miss the amnesty period you will have to trade a licence to cover your current dairy shed water use or reduce your use to comply with your existing licence volume.

More information

29. Where can I find out more about the program?

For information about the program in general, call the Department of Sustainability and Environment’s Customer Service Centre on 136 186.

30. Where can I get a licence application form, help with my application or information about costs?

Contact your water corporation:

• Goulburn–Murray Water, 1800 013 357 (toll free) or (03) 5833 5500
• Grampians–Wimmera–Mallee Water,1300 659 961
• Lower Murray Water, (03) 5051 3400
• Melbourne Water, 131 722
• Southern Rural Water, 1300 139 510

31. How can I make my dairy shed more water efficient?

Use DPI’s booklet Dairy shed water – How much do you use? It is available from the DPI website or call the Customer Service Centre on 136 186 for a hard copy.

32. Where can I get help using the DPI booklet?

Contact a DPI Dairy Extension Officer through Customer Service Centre on 136 186 for advice.

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