The network of pipes and systems that forms Victoria’s water grid is being used to improve water security for communities across the state.
Delivering Water for Victoria, 2018

Extra grid connections are sharing the benefits of the desalination plant at Wonthaggi and building resilience for a drier future and unprecedented water demands from our growing population.

Work to augment, manage and share information on the grid is supported by collaboration in integrated water management forums to identify local challenges and plan projects. We are testing and enhancing our water markets to meet the level of demand and sophistication required by contemporary water users.

Photo of Cardinia Reservoir

Photo: Cardinia Reservoir 2018.

Market effectiveness report

Image of Victoria's water grid and water market which allows water users to move water in connected systems to where it is needed most.Image: Victoria's water grid and water market allows water users to move water in connected systems to where it is needed most.

The first statewide review of the effectiveness of Victoria’s water markets has been released. The review covered all Victorian water markets, including the northern, southern and western regulated surface water markets, unregulated surface water markets and groundwater markets.

Victoria continues to lead in the active monitoring and development of water markets to make sure that they work efficiently, with effective governance frameworks and trading rules to protect existing entitlement holders and the environment.

While this review found that Victorian water markets are effective overall, we need to make sure water markets continue to develop to match the level of demand and sophistication in the market. Victoria will continue to lead the way in water market development in Australia by acting on the findings from this review.

“Overall, water markets are contributing to the desired outcome in Water for Victoria of markets provid[ing] an equitable and efficient way to allow access and sharing of finite water resources.“ Aither and DG Consulting, Effectiveness of Victoria's Water Markets, February 2018

Using the grid for better water security in South Gippsland

Photo of Burra Foods plant

Photo: Burra Foods. Courtesy Burra Foods.

A $43.3 million investment in the Lance Creek Water Security Project is connecting South Gippsland Water’s northern towns of Korumburra, Poowong, Loch and Nyora by pipeline through the Victorian water grid to the Melbourne supply system.

This project is connecting communities to a vital asset and providing a consistent and secure water supply for industrial and domestic customers in South Gippsland. It addresses the challenges of increasing demands from local food processors, ageing assets and the need for improvement in water quality.

The project gives food processing companies like Burra Foods and GBP Exports – which currently employ 165 and 180 staff respectively – confidence to further invest in their businesses and the region. More broadly, the project is developing the grid to improve water security and build drought resilience across South Gippsland.

Improvements to the Water Register

A program of continuous improvements to the Water Register — a public register of all waterrelated entitlements in Victoria — is being implemented to reduce costs and make it easier for users.

As part of this program, we have identified 1502 water shares with a volume of 10 megalitres and less that are held as tenants in common and require complex administrative processes when one of the holders dies. Many of these owners have not been aware of their tenants-in-common status.

We found that the red tape and costs involved in dealing with the death of a holder are significantly greater than the value of the water shares. It also causes extra distress for people at a difficult time. To deal with this issue, we have been making these water share owners aware of their risk, and giving them a one-off opportunity to address their ownership issues at no cost.

Photo of water pump unit

Photo: Pump used to irrigate canola crop, Nagambie

Page last updated: 29/03/19