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.
Applications pending approval
Lower Goulburn River Operating Rules Bulk Entitlement Amendment
Goulburn-Murray Water (GMW) has applied to the Minister for Water, the Hon Gail Tierney MP, under section 44 of the Water Act 1989 to amend the Bulk Entitlement (Eildon-Goulburn Weir) Conversion Order 1995 (the Goulburn BE).
The proposed amendment will insert the lower Goulburn River Operating Rules into the Goulburn BE to provide clarity to GMW in its role as Storage Manager regarding implementation of, and compliance with, the operating rules.
Additional minor changes are being sought to clarify the rules around releases from Lake Eildon and Goulburn Weir and rectify an error in the entitlement volume specified for the Victorian Environmental Water Holder’s mitigation water entitlement.
Provide comments to the Department of Energy, Environment and Climate Action (DEECA) by 22 March 2026.
More information about the application and next steps
The Goulburn to Murray trade rule was revised in 2022 after the Goulburn to Murray trade rule review. The trade rule limits the volume of water that can be traded from the Goulburn system to the Murray system to manage the potential impacts of water trade on third-parties and the environment.
The review was conducted in response to the significant environmental damage caused by the delivery of large volumes of allocation trade from the Goulburn system to the Murray system during summer in 2017-18 and 2018-19.
The trade rule works together with operating rules for the lower Goulburn River.
The lower Goulburn Operating rules work in parallel with the Goulburn to Murray trade rule. The trade rule sets limits on the volume of water traded from the Goulburn system to the Murray system, while the operating rules provide the framework for managing flows in the lower Goulburn River.
The operating rules inform flow rates for water delivery through the lower Goulburn River to the Murray River over summer and autumn, enabling delivery of all water while avoiding environmental damage.
They set maximum limits on baseflows and minimum limits on flow variability to avoid unnaturally high or sustained water levels which can lead to increased erosion. They also establish limits on the sizes of pulses/freshes and the period between them to ensure vegetation has time to establish on the riverbank between higher flow events.
These rules apply to the delivery of all regulated water through the lower Goulburn River, including for local consumptive deliveries, allocation trade from intervalley trade accounts and the delivery of environmental water.
The lower Goulburn River operating rules have been in place as policy since 2022. GMW’s application seeks to amend its Goulburn BE to bring the rules into the bulk entitlement.
The application aims to:
improve clarity for GMW as the Storage Manager regarding the implementation of, and compliance with, the rules; and
improve clarity for the Murray-Darling Basin Authority on how water ordered to the Murray system can be delivered from the Goulburn system.
Incorporating the rules into the GMW’s Goulburn BE makes it clear that the Storage Manager must deliver water in a way that complies with these rules, alongside other obligations set out in the BE.
Since their introduction in 2022, the lower Goulburn operating rules have applied to the delivery of all water, including environmental water.
Incorporating the rules into GMW’s Goulburn BE will not result in any further changes for the environment or entitlement holders.
The Minister for Water will consider the application from Goulburn-Murray Water, taking into account 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.
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 22 March 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.
Amendment to Bulk Entitlement (River Murray – Flora and Fauna) Conversion Order 1999
The Minister for Water has approved an application from the Victorian Environmental Water Holder under section 44 of the Water Act 1989 to amend the Bulk Entitlement (River Murray – Flora and Fauna) Conversion Order 1999.
The amendment protects Victoria’s share of the northern Murray-Darling Basin environmental water that reaches the southern Murray-Darling Basin via the Menindee Lakes, consistent with the North-South Connectivity Trial approved by the Basin Officials Committee in November 2025.
More information about the North-South Connectivity Trial and its implementation under Victoria’s entitlement framework can be found at North-south environmental water trial.
The amendment came into effect on 16 April 2026. View or download from the Victorian Water Register.
South-Central Pool Bulk Entitlement Actions
In line with Action 9.3 of the Central and Gippsland Region Sustainable Water Strategy, relevant water corporations applied to the Minister for Water to create a new South-Central Pool.
The Minister has now approved the applications, and the South-Central Pool arrangements (new bulk entitlements, revocation of existing bulk entitlements and amendment of bulk entitlements) will come into effect on 1 July 2026.
The South-Central Pool replaces the Greater Yarra System – Thomson River Pool, and will draw on both surface water and desalinated water.
The new arrangements will 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. Regional urban water corporations will have access to desalinated water from the Victorian Desalination Project, and future additional water supply from augmentations can be added to the South-Central Pool resource, sharing cost and water security equally.
The water corporations granted new South-Central Pool bulk entitlements in accordance with section 36 of the Water Act 1989 are:
Greater Western Water
Yarra Valley Water
South East Water
Barwon Water
Gippsland Water
South Gippsland Water
Westernport Water
Melbourne Water will hold the sole new desalinated water bulk entitlement.
Melbourne Water’s relevant bulk entitlement amendments have also been approved to reflect the proposed South-Central Pool arrangements, in accordance with section 44 of the Act.
Sunraysia Water Efficiency Project Amendment 2026
The Minister for Water has approved Lower Murray Water’s application under section 44 of the Water Act 1989 to amend its River Murray irrigation bulk entitlement.
The amendment was required to recognise water savings achieved through modernisation works under the Lower Murray Water Sunraysia Water Efficiency Project and to enable water shares to be issued to the Commonwealth Environmental Water Holder.
This is required to meet Victoria’s obligations under the Funding Deed with the Australian Government for the Lower Murray Water Sunraysia Water Efficiency Project.
