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What is an environmental entitlement?

An environmental entitlement is a legal right to take and use water granted under the Water Act 1989 for the purpose of maintaining an Environmental Water Reserve or improving the environmental values and health of the water ecosystems and other users that depend on environmental condition).

Who can hold an environmental entitlement?

Environmental entitlements can be held by the Victorian Environmental Water Holder (section 48B of the Act).

In addition to environmental entitlements, the Victorian Environmental Water Holder may hold other rights to water, such as bulk entitlements and water shares.

Rights and responsibilities under an environmental entitlement

In accordance with the section 48I of the Water Act 1989, environmental entitlements may specify a range of conditions and obligations.

  • Rules about when, where and how much water can be taken.
  • Rules about the right to a share of storage capacity and share of inflows.
  • Obligations to contribute to the payment of operation and maintenance costs.
  • Obligations to meter, maintain accounts and report.

Accessing environmental entitlement information

Environmental entitlements are recorded in the Victorian Water Register. You can access copies of the environmental entitlement orders on the Victorian Water Register.

How environmental entitlements are created

The Minister for Water can allocate environmental entitlements under the section 48B of the Act. In allocating an environmental entitlement, the Minister for Water must follow the administrative procedures set out in the Act.

Environmental entitlements were included in the Water Act 1989 via the Water (Resource Management) Act 2005. The Water (Resource Management) Act 2005 amended the Water Act 1989 to create the legal foundation for water to be set aside to maintain environmental values of rivers and streams.

It is intended that environmental provisions embedded in existing bulk entitlements will be converted into environmental entitlements. Environmental entitlements form part of the Environmental Water Reserve.

The Environmental Water Reserve

The objective of the Environmental Water Reserve is to preserve the environmental values and health of water ecosystems, including their biodiversity, ecological functioning and quality of water and other uses that depend on environmental condition.

Environmental entitlements that form part of the Environmental Water Reserve enable active management of water to meet specific environmental needs, such as fish spawning triggers or maintaining critical habitat during drought.

Can environmental entitlements be traded?

Environmental entitlements may be transferred, in whole in part, under section 480A of the Act provided the Victorian Environmental Water Holder has applied for and obtained approval from the Minister for Water.

Water allocation made available under environmental entitlements may also be assigned to another person, under section 48L of the Act in accordance with the trading rules, provided the trade will benefit the objectives of the Environmental Water Reserve.

Can environmental entitlements be amended?

The Victorian Environmental Water Holder can request the Minister to amend an environmental entitlement under section 48K of the Act.

When the Minister for Water receives a request to amend an environmental entitlement, the administrative procedure set out in the Act must be followed. Key steps include:

  • requests are advertised in local newspapers and on this website
  • the process may involve consultation with stakeholders and local communities and submissions to the Department of Energy, Environment and Climate Action. The purpose of the consultation is to identify the potential impacts of the proposal
  • the Minister for Water may call for submissions when a request is received, and will consider any submissions before making a decision; and
  • amendments are granted through an order from the Minister for Water or the Governor in Council and published in the Victorian Government Gazette.

Requests pending approval

Thomson/Macalister system - Mitigation Water Environmental Entitlement

The Victorian Environmental Water Holder (VEWH) has requested an amendment to the Thomson/Macalister System - Mitigation Water Environmental Entitlement 2024 under section 48K of the Water Act 1989.

The amendment is to include an additional 345.9 ML high-reliability water entitlement and 152.9 ML low-reliability water entitlement (equivalent to 400 ML Long Term Average Annual Yield) to mitigate the impact on Heart Morass from the Southern Rural Water (SRW) Macalister Irrigation District Modernisation Project (MID2030 Project).

Read the application letter

What is the SRW MID2030 modernisation project?

Irrigation district modernisation projects improve water system efficiency, by reducing the volume of water that is required to support delivery of water to existing entitlement holders – by reducing the volume is lost through seepage, leakage, and evaporation and that is spilled through irrigation channel outfalls into wetlands and rivers.

The SRW MID2030 project replaced the district’s ageing channel irrigation network with a modernised system.

Further information on the MID2030 modernisation project can be found at Macalister Irrigation District Modernisation | Southern Rural Water or at Investment in irrigation efficiency.

What has the VEWH requested?

VEWH submitted a request to the Minister for Water, under section 48K of the Water Act, for an amendment to the Thomson/Macalister System Environmental Entitlement 2024 to include additional mitigation water to offset the impacts on Heart Morass from irrigation modernisation.

What is mitigation water and why did the MID 2030 Modernisation project need to provide mitigation water to the environment?

Sometimes water in irrigation channels is discharged through outfalls into wetlands and rivers and, over time, provides an important environmental benefit. Heart Morass is a floodplain wetland (part of the Lower Latrobe wetlands) and is one of the sites that previously benefited from spilled water.

Improving the efficiency of the irrigation systems reduces the volume of water that is spilled through these outfalls. To ensure the environment still benefits, some of the recovered water is set aside for the environment to maintain the areas of high environmental value. This is known as mitigation water.

SRW developed Environmental Watering Plans (EWPs) for sites impacted by modernisation works. The EWPs assessed environmental values and calculated the expected volume of mitigation water required to offset the impact of the implementation of the MID2030 Project.

How is water sourced to meet the additional entitlement?

Mitigation water is sourced from the water recovered from irrigation modernisation works. The 400 ML LTAAY has already been set aside by SRW and is drawn from the overall volume of water recovery achieved and audited by the project to date. The VEWH has applied to add this water to its existing entitlement.

Water recovery associated with MID2030 Project, including mitigation water, has been independently audited to ensure the entitlement being issued reflects actual water savings that have been achieved.

Total Project water recovery is the total (gross) volumes saved, less the volume of mitigation water required.

How much mitigation water is required?

EWPs developed for the Thomson River and Macalister River mitigation water sites identified that a volume of 1,814ML LTAAY was required to offset the impact to these sites from the MID2030 modernisation project.

The Thomson/Macalister System - Mitigation Water Environmental Entitlement was established in 2024 and provides this water as 1568.80 ML of high-reliability entitlement and 691.8 ML of low-reliability entitlement, which is equivalent to the 1814 ML LTAAY.

Heart Morass was a third mitigation water site for which an EWP was prepared.  At the time that the entitlement was established in 2024, there was uncertainty about the mitigation water requirement for the Heart Morass wetland, so the environmental entitlement was issued without a provision for Heart Morass.

In anticipation of a further volume being required for Heart Morass, Southern SRW set aside water while the Heart Morass EWP was updated and finalised.

How will the mitigation water be used?

Planning for the use of the mitigation water entitlement will be incorporated into existing processes, using the Heart Morass EWP as a guide.

Each year, VEWH prepares a Seasonal Watering Plan to guide decisions about delivering water for the environment across Victoria. It outlines how the available environmental entitlements will be used across the state under different climate scenarios and tells VEWH’s program partners, Traditional Owners, stakeholders and communities what to expect during the water year.

To ensure the water is used for the most benefit, VEWH develops the Seasonal Watering Plan in close partnership with waterway managers – who engage extensively with their communities, including Traditional Owners, storage managers, land managers, and scientists – to prepare seasonal watering proposals that form the basis of the plan.

This planning process is thorough, and is informed by scientific evidence, biocultural knowledge, local inputs and on-ground evaluation.

For the Thomson/Macalister system, VEWH works with the West Gippsland Catchment Management Authority to plan how environmental water (including mitigation water) is used each year.

What is the Water Savings Protocol and how is it used to calculate water recovery?

All water savings from major irrigation modernisation projects in Victoria, including the MID 2030 Project, must be estimated and audited in accordance with the Victorian Government Water Savings Protocol.

The Water Savings Protocol is the technical manual for estimating water savings. It reflects current best practice for and is updated periodically to reflect improvements in technology and any changes in the understanding of irrigation system losses.

It also sets out roles and responsibilities and specifies the audit process, including the role of auditor to independently verify water savings estimates.

Estimating water recovery using the methods in the Water Savings Protocol ensures that the estimate is calculated in a consistent and transparent manner using the most current scientific information. This means it can be used as evidence to issue water recovered as entitlements.

The Minister for Water will consider the request from VEWH, in line with the requirements of the Water Act 1989. Subject to the Minister for Water’s approval, the amendment will come into effect when published in the Victoria Government Gazette.

More information and comments

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

Recently approved requests

There are no recently approved requests.

Page last updated: 02/12/25