The ‘Water planning for a resilient and secure future’ initiative has been allocated $20.05 million in funding over 4 years.

Funded from EC6, it is designed to enhance Victoria’s water planning to address the need to deliver more resilient, coordinated and secure water systems in the face of a drying climate and growing demand for water.

The initiative compliments the Water efficiency and diverse water supplies for water security, resilience and liveability initiative. It is made up of 4 programs.

1. Urban Water Planning Assurance Program

This program will deliver a contemporary water planning framework that supports existing and emerging values for water and contributes to the Victorian Government and urban water corporations having up-to-date and agreed plans in place to meet future water demands under a range of climate scenarios.

It will also improve how the urban water sector assures the Victorian Government and communities that goals and obligations are being met and progress is being tracked, and risks are being managed effectively.

This is a new initiative, however builds on work undertaken to evaluate urban water strategies in the EC5 period.

2. Water grid planning

The Victorian water grid comprises networks of natural and built infrastructure responsible for producing and supplying water across geographical boundaries.

Water grid planning helps government and water corporations understand how existing and future water sources can be used to improve water security. This work supports policy decisions about how the water grid is used, while protecting existing entitlements and identifying options for future water security.

3. Central and Gippsland Region Sustainable Water Strategy – Traditional Owner Partnership

The Central and Gippsland Region Sustainable Water Strategy (CGRSWS) was launched in 2022. A key part of developing the CGRSWS was the contribution from the Traditional Owner Partnership, and we continue to work with them in the implementation of the CGRSWS.

This ensures water returns, water security and input into water policy and decision-making considers the Partnerships’ input in a self-determined way.

This program has been co-designed with the 4 Registered Aboriginal Parties that make up the Partnership. Outcomes and learnings from this will help drive reform outcomes for Traditional Owners across the State.

4. Oversight of the Environmental Contribution (EC)

The EC is Victoria’s key funding mechanism to enable delivery of water-related programs and policies. In line with government commitments, this program funding enables effective monitoring, evaluation and reporting of all programs and initiatives funded by EC6.

This will support government decision-making and accountability, and ensure that EC funding delivers the best possible outcomes for Victorian communities in line with legislated EC objectives.

Expenditure to date

  • 2024–25 expenditure: $3.56 million
  • 2025–26 expenditure: $5.73 million

Annual progress summary

  • South Central Bulk Entitlement Reform – significant consultation and collaboration occurred with water corporations connected to the south-central grid system to co-design new bulk entitlements that are fit-for-purpose and support the growth and increased water demand of Melbourne’s surrounding regional areas. The formal approval process for new bulk entitlements is due to commence in late 2025.
  • Annual Water Outlook – since summer 2025, DEECA continued to monitor and report on water restrictions across the State, and developed new tools and reports to improve the process of tracking and reporting on short-term water security risks and issues. This will inform the guidelines for the next Victorian Annual Water Outlook for 2026, which is scheduled for release December 2025.
  • Water Security Plan (formerly known as Water Grid Plan) – final draft of the inaugural Water Security Plan was developed. The Water Security Plan is intended to support the ongoing long-term water security, resilience and affordability of Victoria's urban water supplies. The Water Security Plan is the community-facing component of augmentation planning, which also supports progress towards the return of water to Traditional Owners and the environment.
  • Urban Water Strategies – Victoria’s urban water strategy (UWS) guidelines have been reviewed and updated in consultation with the water sector. Revised guidelines are due to be finalised and released by the end of the year to support water corporations to commence their UWS in 2025-26.
  • Assurance of urban water planning – implemented structured processes to improve oversight of water corporation planning, and for ensuring that the planning framework remains modern. This has included input and direction to revised Guidelines for Urban Water Strategies and for Annual Water Outlooks.
  • Work is well underway to return water from the Moorabool system to the Wadawurrung Traditional Owners Aboriginal Corporation (WTOAC) and the environment (Actions 4.3 and 4.4 of the CGRSWS). This includes discussion of entitlement options, water resource modelling, water sharing and a separate project led by the WTOAC trialling water delivery in the Moorabool Yaluk (Moorabool River).  WTOAC’s first self-determined trial water delivery to Wadawurrung Dja (Country) is documented in the A Flowing Future video on YouTube.
  • DEECA continues to work with water corporations in the Central and Gippsland region to assess and progress projects that could return water to Traditional Owners and the environment from river entitlements held by Melbourne’s water corporations. Feasibility studies are underway for some proposed options in the Werribee and Maribyrnong catchments (Action 4.2 of the CGRSWS).
  • An independent evaluation of EC5 was published, alongside development of the EC6 evaluation framework. Monitoring and reporting through EC governance processes continues, ensuring beneficial outcomes for Victorian communities in line with the legislated purpose of the EC.

Key achievements during 2025–26 include:

  • Water Security Plan – the inaugural Water Security Plan for Greater Melbourne, Geelong and connected towns was released on 25 September 2025. The plan identifies options to maintain safe, reliable and affordable water supplies as population grows and the climate becomes drier, while supporting progress towards returning water to Traditional Owners and the environment. Potential solutions being investigated include increased water efficiency, greater use of stormwater and recycled water for non-drinking purposes, purified recycled water, and expanded desalination capacity. DEECA is leading detailed investigations, working with Melbourne Water and other partners. An expert Water Security Taskforce has been established to review potential future water supply options and report to the Minister for Water in March 2027 on recommended next steps.
  • Urban Water Strategies & Drought Preparedness Plans – reviewed and updated Guidelines for the development of urban water strategies and drought preparedness plans were released December 2025. The major review and update of the guidelines has incorporated significant improvements in the water security assurance process while at the same time streamlining the guidelines using a risk-based approach. These guidelines support urban water corporation 50-year planning to make sure that the water and sewerage services in our cities and towns are prepared for changes in population and our changing climate. The guidelines also support the consistent development of Drought Preparedness Plans, which explain how urban water corporations will prepare and manage water during drought or other temporary shortage events.
  • Annual Water Outlook – The Victorian annual water outlook 2025-2026 was released December 2025, keeping Victorians informed about the State’s water supplies and outlining the plans water corporations will put in place to cope with any shortages if they arise, particularly over summer and autumn. DEECA continues to monitor water restrictions across the State, using new tools and processes in partnership with Victoria’s urban water corporations to track short-term water security risks and issues.
  • South Central Bulk Entitlement Reform – New bulk entitlement arrangements that change the way that water supplies are managed for all urban water corporations connected to the Melbourne Water reservoirs and the Victorian Desalination Plant were approved by the former Minister for Water April 2026. Following significant DEECA led consultation and coordination with urban water corporations connected to the south-central grid system, these reforms have increased water security for Barwon Water, Gippsland Water, South Gippsland Water and Westernport Water, while at the same time supporting simple and equitable cost sharing for all impacted communities. The new South Central Bulk Entitlement arrangements came into effect 1 July 2026 and deliver on the Victorian Government’s Central and Gippsland Region Sustainable Water Strategy commitment to create a south-central pooled resource and associated reforms (Action 9-3).
  • The Central and Gippsland Region Sustainable Water Strategy (CGRSWS) Traditional Owner Partnership (Partnership) continues to partner in implementation of the CGRSWS in a self-determined way.
  • The return of water to Wadawurrung Traditional Owners Aboriginal Corporation (WTOAC) and the environment in the Moorabool system is progressing well (Actions 4.3 and 4.4 of the CGRSWS).
  • DEECA continues to work with water corporations in the Central and Gippsland region to look at options that could return water to Traditional Owners and the environment from river entitlements held by Melbourne’s water corporations. Options are being explored in the Werribee and Maribyrnong catchments through Action 4.2 of the CGRSWS.

Page last updated: 28/10/26