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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

There are no requests pending approval.

Recently approved requests

Thomson/Macalister system - Mitigation Water Environmental Entitlement

The Minister for Water has approved the Victorian Environmental Water Holder’s application under section 48K of the Water Act 1989 to amend its Thomson/Macalister System - Mitigation Water Environmental Entitlement.

The amendment increases the volume of water available under the environmental entitlement by 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).

This is required to mitigate the impact to the Heart Morass mitigation water site from Southern Rural Water’s Macalister Irrigation District Modernisation Project.

The amendment came into effect on 12 March 2026. View or download from the Victorian Water Register.

Page last updated: 20/04/26