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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.

Where can I access bulk entitlement information?

Bulk entitlement orders are available on the Victorian Water Register.

How are bulk entitlements created?

The Minister for Water can issue bulk entitlements under the Act in 2 ways:

  1. Conversion of a pre-existing right to water into a bulk entitlement (section 47) or granting a new bulk entitlement (section 43).
  2. 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:

  • applications are advertised on the Victorian Public Notices website and on this website
  • 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.

Applications pending approval

South-Central Pool Bulk Entitlement Actions

In line with Action 9.3 of the Central and Gippsland Region Sustainable Water Strategy, relevant water corporations have separately applied to the Minister for Water to create a new South-Central Pool.

If approved, the South Central Pool would replace the Greater Yarra System – Thomson River Pool and draw on both surface water and desalinated water.

The South-Central Pool would provide more flexibility in urban water sharing arrangements, to meet changing water demand and supply across south-central Victoria without changing the volume of water that can be taken from the region’s rivers.

The water corporations applying for their Greater Yarra System – Thomson River Pool bulk entitlements to be replaced by new South-Central Pool bulk entitlements are:

  • Greater Western Water
  • Yarra Valley Water
  • South East Water
  • Barwon Water
  • Gippsland Water
  • South Gippsland Water
  • Westernport Water.

They are doing this in accordance with section 36 of the Water Act 1989.

To supply desalinated water to Melbourne via the South-Central Pool, the three Melbourne Retailers have applied to revoke their existing desalinated water bulk entitlements, while Melbourne Water has applied to hold a sole new desalinated water bulk entitlement.

Melbourne Water has also applied for complementary amendments to its relevant bulk entitlements to reflect the proposed South-Central Pool arrangements, in accordance with section 44 of the Act.

Provide comments to the Department of Energy, Environment and Climate Action (DEECA) by Thursday 19 February 2026.

Read the application letters

More information about the applications and next steps

Surface water sourced from the Yarra, Thomson, Bunyip (Bunyip and Tarago Rivers) and Goulburn (Silver and Wallaby Creeks) basins is known collectively as the Greater Yarra system - Thomson River Pool.

These surface water systems, along with Melbourne Water’s transfer and distribution infrastructure for this water (which includes storages such as Cardinia Reservoir and Greenvale Reservoir), comprises the Melbourne Headworks System.

Melbourne Water holds bulk entitlements to surface water in the Thomson River, Yarra River, Tarago River and Silver and Wallaby Creeks and uses this water to supply the 7 urban water corporation bulk entitlement holders in the Greater Yarra system - Thomson River Pool: Greater Western Water, South East Water, Yarra Valley Water, Barwon Water, Gippsland Water, South Gippsland Water and Westernport Water, who each hold a specified entitlement share.

Melbourne Water’s Yarra River, Thomson River, Bunyip-Tarago River and Silver and Wallaby Creeks bulk entitlements each specify a share of water, and limits on the volume of water that may be taken annually from the respective waterways.

Melbourne Water makes an allocation at the beginning of each month to distribute the available water to the Greater Yarra System – Thomson River Pool entitlement holders according to their entitlement share.

The applications would transition the existing Greater Yarra System – Thomson River Pool entitlement arrangements to the proposed South-Central Pool entitlement arrangements, in line with Action 9.3 of the Central and Gippsland Region Sustainable Water Strategy.

The applications are seeking that the source of water for the South-Central Pool would be the existing surface water sources available to the Greater Yarra System – Thomson River Pool plus desalinated water from the Victorian Desalination Project.

The South-Central Pool applications are also seeking to transition the 7 urban water corporations from individually-held shares of the available resource to a share of the available resource which is communally-held by all 7 urban water corporations.

This would simplify water sharing arrangements for all urban water corporations with access to the Melbourne Headworks System, providing flexibility in urban water sharing arrangements to meet changing water demand and supply across the south-central region of Victoria as well as more equitable sharing of water resources and costs, including any future water supply augmentation.

Greater Western Water, South East Water, Yarra Valley Water, Barwon Water, South Gippsland Water, Westernport Water and Gippsland Water have applied for their existing Greater Yarra System – Thomson River Pool bulk entitlements to be replaced by new South-Central Pool bulk entitlements.

In order to supply the proposed South-Central Pool with desalinated water, Melbourne Water has applied to hold the sole bulk entitlement for desalinated water from the Victorian Desalination Project.

Accordingly, the three Melbourne Retailers (Greater Western Water, South East Water and Yarra Valley Water) have applied to revoke their existing desalinated water bulk entitlements, while Melbourne Water has applied for a new bulk entitlement for desalinated water.

Melbourne Water currently supplies the Greater Yarra System – Thomson River Pool using its existing Yarra, Thomson, Bunyip-Tarago and Silver-Wallaby Creek surface water bulk entitlements. Melbourne Water has applied for complementary changes to these entitlements to reflect the new South-Central Pool arrangements.

Melbourne Water’s applications to its surface water bulk entitlements are seeking amendments related to governance and administrative arrangements for the South-Central Pool.

Melbourne Water is not seeking any changes to Melbourne Water’s existing access to surface water in the Yarra, Thomson, Bunyip-Tarago or Silver-Wallaby Creeks systems.

Specifically, Melbourne Water is not seeking any change to its inflow and storage shares, locations of take, and maximum annual volume of take from these surface water systems.

The South-Central Pool will be supplied from the same sources of surface water, held by Melbourne Water, as the existing Greater Yarra System – Thomson River Pool.

Melbourne Water is not seeking any changes to its existing access to surface water in the Yarra, Thomson, Bunyip-Tarago or Silver-Wallaby Creeks systems.

The applications are not seeking to change environmental flows or environmental water held by the Victorian Environmental Water Holder in the Yarra, Thomson, Bunyip-Tarago and Silver-Wallaby Creeks systems.

The South-Central Pool will be supplied from the same sources of surface water, held by Melbourne Water, as the existing Greater Yarra System – Thomson River Pool.

Melbourne Water is not seeking any changes to its existing access to surface water in the Yarra, Thomson, Bunyip-Tarago or Silver-Wallaby Creeks systems.

The applications are not seeking to change water access for other existing water users in the Yarra, Thomson, Bunyip-Tarago and Silver-Wallaby Creeks systems.

Yes. The creation of the south-central pooled resource and associated reforms (Central and Gippsland Region Sustainable Water Strategy, Action 9-3) would provide benefits to all urban water users across the region.

Simplifying how water is shared between the 7 urban water corporations would allow them to easily access the water they need to meet changing water demand and regional growth across the south-central region, in both the metropolitan and connected regional areas.

It would provide greater water security to the regional areas as it means that the regional urban water corporations in the region would also have access to desalinated water from the Victorian Desalination Project, which can supply water no matter what the rainfall is.

The creation of the South-Central Pool would also allow any future additional water supply from augmentations to simply be added to the South-Central Pool resource, which would ensure that the cost and security is equitably shared.

The Minister for Water will consider the applications from each of the 8 water corporations, taking into account the requirements of the Water Act 1989.

Subject to the Minister for Water’s approval, the new bulk entitlements and bulk entitlement amendments will come into effect when they are published in the Victoria Government Gazette.

More information and submissions

For more information on the application, call 136 186 or email water.be@deeca.vic.gov.au.

The Minister will consider any comments received from the public on the application. Written comments can be emailed to water.be@deeca.vic.gov.au or mailed to:

Executive Director, Water Resources Strategy
Department of Energy, Environment and Climate Action
PO Box 500
East Melbourne VIC 3002

By 19 February 2026

Amendment to Bulk Entitlement (River Murray – Flora and Fauna) Conversion Order 1999

The Victorian Environmental Water Holder (VEWH) has applied to the Minister for Water under section 44 of the Water Act 1989. The application seeks to amend the Bulk Entitlement (River Murray – Flora and Fauna) Conversion Order 1999.

VEWH is seeking amendments to secure Victoria’s share of environmental water that comes from the northern Murray-Darling Basin and reaches the southern Basin via the Menindee Lakes as an environmental entitlement. The proposed amendments, if approved, would support the North-South Connectivity Trial that the Basin Officials Committee approved in November 2025.

VEWH has also sought minor changes to reflect the current role of the Resource Manager in the River Murray system and correct administrative errors.

Read the application letter

What is the North-South Connectivity Trial?

The Basin Officials Committee (BOC) facilitates cooperation and coordination between the Commonwealth, the Basin states and the Murray–Darling Basin Authority (MDBA) in funding works and managing the Basin water and other natural resources.

BOC has approved a trial to protect environmental water recovered in the northern Basin that arrives at the Menindee Lakes, and shepherd that water through to the southern Basin.

The trial is testing water accounting arrangements to protect this water while ensuring no impact to other entitlement holders. BOC has approved the trial arrangements until 30 June 2028. This includes requirements for monitoring and review throughout the trial period.

New South Wales (NSW) and Victoria have an equal share of inflows into the Menindee Lakes under the Murray-Darling Basin Agreement. Both States need arrangements in place to support the trial and protect the water for environmental use downstream.

The trial refers to the environmental water arriving at the Menindee Lakes as ‘Active Environmental Water’ (AEW). This is because NSW must ‘actively’ manage the water in the upstream Barwon-Darling River.

NSW does this through tracking daily inflows and changing licenced pumping thresholds as the water flows down the river.

The amount of AEW will vary from year to year. The MDBA undertook modelling as part of the Northern Basin Review in 2016. From this modelling, the MDBA estimates that the long-term average volume of AEW reaching the Menindee Lakes is about 150 giga litres/year. Victoria’s share is equal to half this estimated amount (75 giga litres/year).

Estimates of the long-term average of AEW reaching the Menindee Lakes will continue to improve as knowledge of environmental water delivery improves and implementation of the Basin Plan continues.

This additional environmental water flowing to the Menindee Lakes and through to the River Murray System will enable a range of additional environmental outcomes in NSW, Victoria and South Australia.

What has VEWH applied for?

The Victorian Environmental Water Holder (VEWH) has applied to amend its Flora and Fauna Bulk Entitlement (BE) to protect Victoria’s share of the northern Murray-Darling Basin ‘Active Environmental Water’ that reaches the southern Basin, via the Menindee Lakes.

Victoria is entitled to half of all inflows to the Menindee Lakes under the Murray-Darling Basin Agreement. The proposed amendments would bring this water under Victoria’s entitlement framework through the introduction of a new ‘Menindee Lakes Trial Entitlement’ under the Flora and Fauna BE.

If approved, VEWH would be required to manage the entitlement consistent with its functions under the Water Act 1989 and consistent with the conditions of the North-South Connectivity Trial agreed by BOC in November 2025.

The proposed bulk entitlement amendment also provides for VEWH to continue to access this water if BOC approves enduring arrangements. No water will be available to the VEWH under the proposed amendment if for any reason the trial ceases without an agreed extension or without BOC approved enduring arrangements in place.

The VEWH is also seeking minor administrative changes to the Flora and Fauna BE. For instance, updating the title and current functions of the Resource Manager and removing a redundant explanatory note for the Barmah-Millewa Forest Environmental Water Allocation.

How would this water benefit the environment?

The proposed amendments to protect Victoria’s share of AEW would increase available environmental water which would enhance environmental outcomes and deliver on the objectives of the Murray-Darling Basin Plan.

In-channel habitat for native fish and other water dependent animals would benefit from the additional flow into the southern Basin. Fringing, in-stream and floodplain vegetation would benefit both immediately downstream of the Menindee Lakes and throughout the lower Murray, including in Victoria’s Lindsay, Mulcra and Wallpolla islands waterways.

The additional water could also provide greater flexibility in using environmental holdings across the River Murray System, achieving better outcomes.

For example, improved landscape-scale outcomes could be achieved by coordinating releases from the upper River Murray storages to coincide with releases from the Menindee Lakes, providing sufficiently sized river pulses to trigger fish spawning events across the River Murray System.

How is Victoria ensuring that water users are not impacted?

The MDBA has undertaken analysis and provided assurances to BOC that Victorian water availability would not be adversely impacted by protecting this Active Environmental Water under the trial.

VEWH’s proposed bulk entitlement amendment includes various risk mitigation measures to further ensure this, consistent with the trial arrangements agreed by BOC.

This includes the setting aside of a contingency reserve, a condition that the AEW would spill first during a physical spill of the Menindee Lakes, and that VEWH and Victoria’s Resource Manager for the River Murray must develop operating arrangements consistent with the conditions and requirements of the trial.

How would use of this water be managed?

Delivery would occur in line with the VEWH’s annual Seasonal Watering Plan. The VEWH works in close partnership with environmental water managers in NSW, South Australia, the Commonwealth Environmental Water Holder and the Living Murray program through the Southern Connected Basin Environmental Watering Committee to coordinate flows across the southern Murray Darling Basin.

The VEWH would manage the water under these established planning and delivery partnerships to achieve environmental outcomes as efficiently as possible. The VEWH would also work directly with the holder of NSW’s share of Active Environmental Water inflows to jointly manage the water, as per the trial  arrangements.

The Minister for Water will consider the application from VEWH, in line with the requirements of the Water Act 1989.

Subject to the Minister for Water’s approval, the bulk entitlement amendment will come into effect when it is published in the Victoria Government Gazette.

More information and submissions

For more information on the application, call 136 186 or email water.be@deeca.vic.gov.au.

The Minister will consider any comments received from the public on the application. Written comments can be emailed to water.be@deeca.vic.gov.au or mailed to:

Executive Director, Water Resources Strategy
Department of Energy, Environment and Climate Action
PO Box 500
East Melbourne VIC 3002

By 19 January 2026

Recently approved applications

Potential water access for Latrobe mine rehabilitation

AGL, the Loy Yang mine licensee, applied to the Minister for Water to access surface water from the Latrobe River system for Loy Yang mine rehabilitation. The Minister has considered relevant information, including feedback received from two rounds of public consultation, and decided to approve AGL’s application and grant a new bulk entitlement to AGL.

The Minister for Water has set conditions on AGL’s new bulk entitlement that are consistent with Latrobe Valley Regional Rehabilitation Strategy policy. The conditions align how much water AGL can take with climatic conditions, reducing water take during drier periods and peak irrigation demand, which will increase protection of flows and water quality in the Latrobe River system and reduce competition for water in peak demand periods.

Additionally, the Minister has imposed a condition that requires AGL to make a water access payment of $230 per megalitre per year (2025 dollars with CPI applied). See the Treasurer’s announcement for further information on the revenue from the new bulk entitlement.

AGL and Southern Rural Water also applied separately to amend existing Loy Yang power generation surface water entitlements to clarify exactly when electricity generation stops and when water can no longer be taken under these existing entitlements. The Minister has considered these separate applications and decided to approve them.

In addition to deciding on these applications, the Minister for Water has initiated a process to reduce the Latrobe River Basin Permissible Consumptive Volume (PCV or cap) by the difference between entitlement volumes for power generation and new bulk entitlements issued for mine rehabilitation.

This amendment would safeguard the benefits resulting from the conditions on AGL’s new bulk entitlement for mine rehabilitation, by ensuring the cap reflects the more sustainable levels of water take and ensuring water use does not exceed what has been taken by power generators on average in recent decades.

Further details are available on Engage Victoria. Copies of the bulk entitlements are available on the Victorian Water Register.

Page last updated: 09/02/26