What is the Snowy Scheme?
The Snowy Scheme captures water from the rivers of the Snowy Mountains and diverts it to the Murrumbidgee and Murray Rivers, providing water for irrigation and hydro-electricity generation.
The Snowy Scheme plays a vital role in securing water supplies for the Victorian Murray, environmental flows in the Snowy River and underpinning energy security of supply for Victorian communities and businesses.
What is the Snowy Water Inquiry Outcomes Implementation Deed (the Snowy Deed)?
The Snowy Deed reflects arrangements for balancing energy production and environmental outcomes under the Snowy Scheme. The deed reflects significant joint investment by the Victorian, New South Wales and Commonwealth governments to return water to the Snowy and Murray rivers and places requirements on Snowy Hydro to deliver environmental flows.
Why is the Snowy Deed being reviewed?
The Snowy Deed can only be formally reviewed or amended with the agreement of the 3 ‘deed parties’ – the Commonwealth, New South Wales and Victorian governments.
However, the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW) are undertaking an independent review of the Snowy Deed as part of their $55.6 million investment to improve the health of the Upper Murrumbidgee River.
The importance of the Snowy Scheme to Victoria
The Snowy Scheme is critical to water and energy security for Victorian communities. This means any proposed changes to the agreements which underpin the operation of the Snowy Scheme need to be carefully considered.
Water released from the Snowy Scheme to the Murray River underpins the reliability of Victoria’s Murray water entitlements. Environmental water releases from the scheme are also essential to the health of the Snowy and Murray rivers.
The Snowy Scheme is critical to the National Energy Market in supporting energy system reliability, security, and affordability, while supporting reduced emissions elsewhere in the system. It provides clean renewable power and will soon provide additional peak generation capacity that is critical for Victoria’s long-term energy security and clean energy transition.
The Department of Energy, Environment and Climate Action and East Gippsland Catchment Management Authority have prepared a fact sheet outlining the importance of the Snowy Scheme to Victoria and how this links to the Commonwealth’s review of the Snowy Deed:
Consultation on the review
DCCEEW have appointed an Independent Panel (the Panel) to lead their review. The Panel has developed an Issues Consultation Report outlining the issues considered in the review and is now seeking public feedback: Issues Consultation Report.
You can have your say on what the Commonwealth’s review should consider during consultation until 13 February 2026 - Take the survey.
Next steps
Feedback received during the consultation period will inform the Panel’s recommendations to the Commonwealth Government by 30 June 2026.
Any changes to the Snowy Deed itself must be done by agreement between the Commonwealth Government, New South Wales and Victoria as the deed parties.
Page last updated: 30/01/26