What bulk entitlements are and how they are controlled.
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What is a bulk entitlement?
A bulk entitlement is a legal right to take and use water granted under the Water Act 1989.
Who can hold a bulk entitlement?
Bulk entitlements can be held by water corporations, the Victorian Environmental Water Holder and other specified bodies defined in section 34 of the Act.
What rights and responsibilities are granted under a bulk entitlement?
In accordance with the section 43 of the Act, bulk entitlements may specify a range of conditions and obligations on its holder, including:
rules about when, where and how much water can be taken
rules about how the water can be used
rules about the right to a share of storage capacity and share of inflows
obligations to release flows for environmental uses
obligations to supply primary entitlement holders
obligations to contribute to the payment of operation and maintenance costs and
obligations to meter, maintain accounts and report.
The Minister for Water can issue bulk entitlements under the Act in 2 ways:
Conversion of a pre-existing right to water into a bulk entitlement (section 47) or granting a new bulk entitlement (section 43).
A potential bulk entitlement holder must apply to the Minister for Water for the conversion or granting of a bulk entitlement. The Minister Water must consider any applications in accordance with the procedures specified in the Act.
Can bulk entitlements be amended?
Yes, under section 44 of the Act bulk entitlement holders can apply to the Minister for Water to amend an existing bulk entitlement.
Can bulk entitlements be traded?
Bulk entitlements may be transferred under section 46D of the Act, provided the holder has applied for and obtained approval from the Minister for Water.
Water allocation made available under bulk entitlements may also be assigned to another person under Section 46A of the Act in accordance with trading rules.
Applications to issue or amend a bulk entitlement
When the Minister for Water receives an application for a new bulk entitlement or to amend an existing bulk entitlement, the requirements set out in the Act are followed, including:
depending on the nature of the proposal, the application process may involve consultation with stakeholders and local communities and submissions to the Department of Energy, Environment and Climate Action or the applicant
the purpose of this consultation is to identify the potential impacts of the proposal, including any adverse impacts on existing water users and the environment
the Minister for Water will consider any submissions received before making a determination on the application and
new bulk entitlements or amendments are granted through an order from the Minister for Water or the Governor in Council and published in the Victorian Government Gazette.
Notification of applications
Potential water access for Latrobe mine rehabilitation
Applications received
In line with the Water Act 1989, the Minister for Water has received the following applications:
AGL (the Loy Yang mine licensee) has applied for a new bulk entitlement to access water for mine rehabilitation.
AGL has also applied to amend its existing Loy Yang A bulk entitlement, to make it clearer when power generation ceases at the Loy Yang A power station, and water will no longer be taken under this bulk entitlement. The proposed amendment would provide for a clearly identifiable power station closure date. The proposed amendment would remove uncertainty and would allow power generators and Southern Rural Water (as the system manager) to plan for the resulting change in system operations.
Southern Rural Water has also applied to amend the Loy Yang B bulk entitlement, to make it clearer when power generation ceases at the Loy Yang B power station, and water will no longer be taken under this bulk entitlement.
As part of the statutory process to consider these applications, the Minister invited submissions from the public on the applications via Engage Victoria, the Victorian Government's Online Consultation platform.
Submissions were accepted between 21 October 2024 and 15 December 2024.
Call for further public submissions
The Minister for Water now invites further public submissions on AGL’s application for a new bulk entitlement to access surface water for the water-based rehabilitation of the Loy Yang mine.
This consultation is in respect of a specific matter raised in submissions – being the economic value of the water entitlement sought by AGL, and in particular the proposal that a financial obligation – or a ‘price’ – be imposed on the bulk entitlement holder, to reflect the economic value of water for mine rehabilitation purposes.
The consultation launched on Wednesday 25 June 2025 and was set to conclude on Tuesday 22 July 2025. The Minister for Water has decided to extend the consultation. Written submissions and survey responses will now be accepted to 11:59 pm Friday 15 August 2025.
Have your say on the economic value of the water entitlement sought by AGL.
Amendments to Bulk Entitlements in Northern Victorian Declared systems - Goulburn-Murray Water Pricing Changes
The Minister for Water has received applications under section 44 of the Water Act 1989 from 10 water corporations, being Goulburn-Murray Water, North East Water, Goulburn Valley Water, Coliban Water, Grampians Wimmera Mallee Water, Lower Murray Water, Central Highlands Water, Greater Western Water, South East Water and Yarra Valley Water.
The applications are to amend the bulk entitlements these water corporations hold in the Murray, Ovens, Broken, Goulburn, Campaspe, Loddon, Bullarook declared water systems.
The proposed changes to the bulk entitlements support the introduction of a new Goulburn-Murray Water pricing structure for bulk water charges, which replaces the water basin charging structure with a two-water system pricing structure, as approved by the Essential Services Commission.
What has Goulburn-Murray Water changed with regards to bulk water pricing?
Goulburn-Murray Water (GMW) has changed its method for determining bulk water charges that are paid by water corporations in northern Victorian declared water systems (being the Murray, Ovens, Loddon, Campaspe, Goulburn, Bullarook and Broken systems). These charges cover costs for the storage of water in reservoirs and the subsequent supply of water to these water corporations.
Why are the water corporations applying for changes to their bulk entitlements?
Between them, Goulburn-Murray Water, North East Water, Goulburn Valley Water, Coliban Water, Grampians Wimmera Mallee Water, Lower Murray Water, Central Highlands Water, Greater Western Water, South East Water and Yarra Valley Water hold 30 bulk entitlements (BEs) in the declared northern water systems.
To support the introduction of the new bulk water pricing structure, these water corporations have applied to amend their BEs. These amendments will ensure the BEs reflect current cost-sharing arrangements, maintaining transparency and clarity of BE holders’ obligations.
What changes have water corporations applied for?
The proposed amendments will remove prescribed methods for cost sharing of bulk water charges and other detailed payment processes. These will be replaced with a simplified cost clause that reflects each BE holder’s obligation to pay a share of the costs, refers to the role the ESC has in reviewing and approving pricing, and enables arrangements to be agreed upon between the BE Holder and GMW that detail the payment of those costs.
The proposed BE amendments will introduce a clear, consistent cost clause specifying the BE holder’s obligation to pay and moves away from the prescriptive details around payments.
What is a pricing determination?
The ESC is responsible for issuing price determinations that approve the maximum prices a water corporation may charge customers (including other water corporations) for its services or the manner in which its prices are to be calculated, determined, or otherwise regulated.
Price determinations are made by the ESC in accordance with Part 3 of the Essential Services Commission Act 2001 and Part 1A of the Water Industry Act 1994. Further information on Pricing determination can be found at https://www.esc.vic.gov.au/water.
Does this impact the price I pay as a customer of one of the 10 water corporations?
No. These amendments relate only to bulk water charges that are levied on each of the water corporations that hold a bulk entitlement in northern Victoria declared water systems. The amendments do not give effect to the pricing changes, but are needed to support their implementation. For bulk water customers, moving to a system-based pricing structure will result in little change, or lower charges for water.
The Minister for Water will consider the applications from each of the 10 water corporations, taking into account the requirements of the Water Act 1989. Subject to the Minister for Water’s approval, the bulk entitlement amendments will come into effect when they are published in the Victoria Government Gazette.
