The resilience of rural and regional communities is key to supporting positive economic, environmental, and social outcomes for Victoria. Sustainable water management is central to their future prosperity.

Over 4 years, $56.93 million is allocated to the ‘Water wise and resilient rural communities’ initiative. It will continue our efforts enabling irrigation and agricultural communities to use water wisely, and providing governance and oversight of significant water infrastructure projects in Victoria while protecting and enhancing the environment.

The initiative has 2 interdependent streams:

  • Sustainable Irrigation – delivering a resilient, sustainable water future for irrigation communities while promoting a healthy environment. This stream has a strong history of reducing adverse impacts of irrigation on the environment and third parties, while improving water use efficiency and best practice land management for environmental and productive outcome.
  • Rural water major infrastructure projects oversight and governance – providing line of sight for Government in the delivery of over $650 million (during the 4-year EC6 period) of current rural, regional, and peri-urban water infrastructure projects by water corporations in Victoria.

Expenditure to date

  • 2024–25 expenditure: $14.47 million
  • 2025–26 expenditure: $14.28 million

Annual progress summary

The 'Water wise and resilient rural communities’ initiative includes both the Sustainable Irrigation and Rural Water Projects and Programs streams. Highlights included:

  • by March 2025, DEECA entered into 4-year funding agreements with the CMAs and Agriculture Victoria to support initiatives aimed at enhancing on-farm irrigation water use efficiency, mitigating irrigation offsite impacts, regional monitoring and salinity management. compliance and implementation of Basin Salinity Management 2030 strategy. Catchment management authorities (CMAs) have been progressing planning and implementation of a range of activities aligned to the initiative including:
    • regional implementation of Land and Water Management Plans including the newly endorsed Shepparton Irrigation Region Land and Water Management Plan 2050.
    • delivery of Murray-Valley Drainage Course Declaration (DCD) project with obstruction removal works in progress, and initiation of the Top Creek DCD engagement processes.
    • preparation work for upcoming basin salinity management accountable action reviews (Tragowel Plains, Nyah–South Australia border and Shepparton Irrigation Region Salinity Management Plan). Input into the scoping of the BSM2030 mid-term review through the Basin Salinity Management Advisory Panel.
    • a range of irrigation extension outreach activities by Agriculture Victoria providing broadscale online information on irrigation demand, farm walks and irrigation application efficiency and uniformity assessments and training events. This has continued to be adapted to regional demand to climatic conditions and other varied environmental and market drivers.
    • delivery of regional Irrigation Development Guidelines (IDGs) including the Gippsland, Northern Victorian and Mallee. The Mallee IDG recommended endorsement of 4 IDGs referred to them by Lower Murray Water covering 1,400 hectares of land and proposed irrigation application volumes of 7,700 megalitres (ML) to the water corporation during 2024–25.
  • Federal funding through the Resilient Rivers Water Infrastructure Program (RRWIP) was secured in May 2025 to deliver projects from Planning our Basin Future Together prospectus, including the Broken Reconfiguration Project and 3 Domestic and Stock Feasibility Projects.
  • Federal funding was secured in April 2025 to deliver the Detailed Assessment (feasibility study) for the proposed Sustainable Diversion Limit Adjustment Mechanism (SDLAM) project ‘Restoring Flows to the Mallee Floodplain’. The Basin Officials Committee notified DEECA in June 2025 and Victoria will begin negotiations in early 2025-26 with the Commonwealth to secure implementation funding for the project.
  • the Victorian Basin Communities Interdepartmental Committee was established in August 2024 and has progressed work to enable a whole of government response to the Commonwealth's water purchase program.
  • DEECA provided oversight and governance for more than $650 million of water infrastructure projects across Victoria and in March 2025 executed a variation to the National Water Grid Fund Schedule to the FFA – Infrastructure to add an additional $77.9 million of Federal funding for 11 projects worth a combined value of $180 million. This included $46.6 million towards the $113.2 million Western Port Recycled Water Scheme, $19.3 million towards the $40.6 million towards the Sustainable and Efficient Regions (WISER) initiative which includes five small infrastructure projects.
  • several major projects reached significant milestones, including the practical completion of the $37.9 million Lower Murray Water Sunraysia Water Efficiency Project in October 2024, and the practical completion of both the $62.6 million Macalister Irrigation District Modernisation Phase 2 Project, and the $21.95 million Werribee Irrigation District Modernisation Stages 4&5 Project in November 2024.

The 'Water wise and resilient rural communities’ initiative includes both the Sustainable Irrigation and Rural Water Projects and Programs streams. Key achievements during 2025-26 include:

  • The program has entered its second year of implementation and continues to focus on enhancing on-farm irrigation water use efficiency, mitigating irrigation offsite impacts, strengthening regional monitoring and salinity management, supporting compliance activities, and implementing the Basin Salinity Management 2030 (BSM2030) Strategy. Catchment management authorities (CMAs) and Agriculture Victoria (AgVic) are progressing planning and delivery of activities aligned with the initiatives, including:
    • Implementation of CMA Land and Water Management Plans (LWMPs) is continuing, with the North East CMA LWMP approved in early 2026.
    • Delivery of the Drainage Course Declaration (DCD) project along Deakin Top Creek is continuing, with works to remove 10 obstructions completed by mid-year.
    • The North Central CMA developed an irrigation drainage toolkit to guide on-farm drainage management.
    • Implementation of BSM2030 salinity management actions is progressing. Tragowel Plains Accountable Action (TPAA) has been completed, and the review of the Nyah to the South Australian Border Salinity Management Plan Accountable Action has commenced. Draft Murray-Darling Basin Authority (MDBA) river modelling has been prepared.
    • Annual groundwater monitoring across northern Victoria has been completed, informing the development of regional water maps. A study of the groundwater salinity pumps in Gippsland region is also underway to inform future pump operation and management.
    • Input to the MDBA-led strategic review of BSM2030, with the first stage, an evaluation of strategy implementation, currently underway.
    • The Irrigation Extension and Incentives programs continue to support irrigators across Victoria. By mid-year, 29 Irrigation Farm Plans had been completed across the West Gippsland, North Central, and Goulburn Broken regions.
    • Six Irrigation Demonstration Programs are well underway in West Gippsland, providing opportunities to showcase and adopt new irrigation technologies. Agriculture Victoria’s irrigation extension services, including soil moisture monitoring, irrigation system efficiency assessments, optimising irrigation efficiency, spray irrigation assessments, new irrigation energy assessments, and irrigation system design support, have assisted over 650 farmers across Victoria. These services continue to be tailored to regional demand, climatic conditions, and market and environmental drivers.
    • Delivery of the Irrigation Development Guidelines (IDGs) continues to support new irrigation development across Gippsland, North Central, Mallee, Goulburn Broken, North East and South West Victoria. By mid-year, more than 70 IDGs consultations and advisory services had been provided to farmers across Victoria, helping ensure compliance with regulatory requirements.
  • Engagement continued with stakeholders and regional communities on Murray–Darling Basin Plan implementation and associated water recovery measures.
  • Regional Irrigated Land and Water Use Mapping progressing with additional data capture, mapping and reporting across Victoria, including for unregulated diversions and groundwater use within the catchments supplied by Goulburn-Murray Water.   
  • DEECA Water and Catchments group supported the preparation of renewable energy assessments for wind and solar energy projects intended to be undertaken in irrigation districts.
  • In 2025-26, DEECA provided oversight  and governance  for more than $570  million of water infrastructure projects across Victoria.
  • An additional $5.6 million of Federal National Water Grid Funding was secured for two projects worth a combined value of $12.25   million. This includes $5 million towards the $11.25 million Westernport Water Distribution Network Resilience project and $0.6 million towards the $1 million Climate Information and Guidance for Water Infrastructure Planning science project.
  • In July 2025, the Victorian Government announced $15 million funding towards the $30.6 million Mininera Rural  Pipeline project to expand access to reliable and high-quality water supply for farmers. Construction of the project commenced in January 2026 and will extend the East Grampians Pipeline network to the southern end of the Grampians .
  • Construction commenced for the $113.2 million Western Port Recycled Water Scheme project. This project will construct a new pump station, trunk main and approximately 49 km of recycled water pipelines to improve water availability for agriculture, supporting local food production.
  • Key infrastructure modernisation projects were completed in 2025-26 including in the Macalister, Werribee and Sunraysia Irrigation districts, together with the Victorian Connections Pathway package, which comprised nine infrastructure projects.
  • The $5.7 million Coliban Rural Water Efficiency Project Detailed Business Case was completed, securing a $120 million contribution from the Australian Government's Resilient Rivers Water Infrastructure Program in April 2026 to deliver the project.
  • Additional funding for projects consistent with Victoria’s Planning our Basin future together prospectus was secured through the Sustainable Rural Water Use and Infrastructure Program, including the Restoring Flows to the Mallee Floodplain Program.

Page last updated: 28/10/26