Melbourne
Water access and use
Water rights, entitlements, allocations, and restrictions
Introduction
This note provides information about the water access rights granted by jurisdictions to the users of the region's water resources and the associated allocation announcements and abstractions.
The 2014 Account acknowledges that the legislative water resource management frameworks relating to Australian water rights vary greatly across jurisdictions, sometimes making comparisons difficult. To facilitate meaningful comparisons between the water accounting reports included in the 2014 Account, the Bureau of Meteorology has developed and applied an accounting concept to classify and report water entitlements within a water asset/water liability framework.
According to that framework, water rights for the Melbourne region for the 2013–14 year have been classified as shown below.
Surface water rights
In the Melbourne region, there are allocated and non-allocated surface water diversions. Allocated-diversions are made under an entitlement for individual users and the urban water system. Non-allocated-diversions are made under take and use licences issued for irrigation, stock and domestic, commercial and industrial, and other purposes. Take-and-use licences specify a maximum entitlement volume, but this does not represent a surface water liability.
In the Melbourne region, surface water allocations for individual users represent the volume of water allocated in the Bacchus Marsh Irrigation District, Werribee River, and Werribee Irrigation District. Allocation announcements for the urban water system represent the volume of water effectively allocated under the bulk entitlements held by Melbourne's retail water authorities. Information on the allocation process for individual users and the urban water system is available under 'Surface water allocation announcements' in the Surface water store note.
The volume of surface water entitlements, corresponding water allocations and volumes of diversions for the 2013–14 year, compared to the previous two years, are shown in Figure 1. The percentage shows the ratio of diversion to the water access entitlement.
Note that water allocations and diversions related to the urban water system appear in the Surface water store note; however, they do not appear in the water accounting statements because they are transactions that occurred within the region. These transactions did not impact the region's total water assets and water liabilities.
Figure 1 Surface water access entitlements, allocations and diversions in the Melbourne region for the years ending 30 June 2012, 2013, and 2014
The three urban water retailers (South East Water, Yarra Valley Water, and City West Water) within the Melbourne region have a total water right of 268,800 ML to water from outside the region. This entitlement to import water is comprised of:
- 171,800 ML for Thomson River
- 22,000 ML for the Silver and Wallaby creeks (one-thirds from 66,000 ML specified for three years)
- 75,000 ML for the Goulburn and Murray System applying from the 2012–13 year.
These entitlements outside the region and the volume of water diverted under them are included in the volumes presented in Figure 1. The total volume of surface water access entitlement for allocated diversions for urban water supply was 699,494 ML including those entitlements from outside sources for the 2013–14 year. Increase of entitlements shown in Figure 1 during the past two years was the result of including rights to Goulburn and Murray water.
Figure 1 shows that the allocation announcements for surface water diversion to individual users decreased slightly from the 2011–12 year (2012) to the 2013–14 year (2014) as a result of decreased water availability. Diversions by individual users during the 2013–14 year decreased by 11% from the previous year. The total volume of surface water access entitlement for allocated diversions to individual users was 22,517 ML for the 2013–14 year.
For the urban water system, allocation increased during the 2013–14 year compared to previous two years as a result of receiving more water from the Thomson Reservoir (for water received from external sources including the Thomson Reservoir, allocation was the actual delivery, see 'Water received under inter-region agreements'). Diversions to the urban water system during the 2013–14 year increased slightly from the previous year.
Figure 1 does not include carry-over volumes from the previous year. Carry-over volumes from the region sources as well as outside sources (particularly Thomson Reservoir) are an important component of the water availability in the Melbourne region. Therefore, allocations shown in Figure 1 are not a true reflection of actual water availability. Figure 2 shows total water diversions including non-allocated diversions for individual users, and total water availability that include announced allocations and carry-over volumes. For non-allocated diversions, the entitlement volume (66,379 ML) was considered as the allocation in Figure 2.
Figure 2 Total surface water availability and total diversion in the Melbourne region for the years ending 30 June 2012, 2013, and 2014
Figure 2 shows that the water availability, as well as the ratio between diversion and availability for individual users slightly decreased in three-year period. For the urban water system, both water availability and the diversion increased from the 2011–12 year (2012) to the 2013–14 (2014) year; however, the ratio between diversion and availability remained unchanged.
Groundwater rights
The total volume of groundwater access entitlement for allocated extractions was 40,881 ML for the 2013–14 year. In the Melbourne region, groundwater is mainly extracted by individual users. Extractions for urban purposes are very small. Groundwater allocations in the region were equal to 100% of the water access entitlement if restrictions are not specifically announced.
The volume of groundwater allocation and extraction for the 2013–14 year, compared to the previous two years, are shown in Figure 3. The percentage shows the ratio of extraction to the allocation announcement.
Note that water allocations and abstractions related to the urban water system appear in the Groundwater note; however, they do not appear in the water accounting statements because they are transactions that occurred within the region. These transactions did not impact the region's total water assets and water liabilities.
Figure 3 Groundwater access entitlements, allocations and extractions in the Melbourne region for the years ending 30 June 2012, 2013, and 2014
Figure 3 shows that the allocation announcements and groundwater extraction for individual users during the 2013–14 year remain relatively unchanged from the previous two years. This coincides with reduced reliance on groundwater and relatively unchanged groundwater availability during recent years in the Melbourne region.
Water access restrictions
During the 2013–14 year, bans applied at times to diversions from many unregulated streams within the Melbourne region. These were categorised as restrictions (pumping times or days restricted, in accordance with drought response plan) or irrigation ban. For more information on these restrictions, please refer to the Victorian Department of Environment and Primary Industries monthly water reports.
Announced allocations restrict water use (primarily irrigation) in the Bacchus Marsh Irrigation District, Werribee River, and Werribee Irrigation District. During the 2013–14 year, high reliability and low reliability entitlement holders received allocations of 100% and 15% respectively. For more information on announced allocations, please refer to 'Surface water allocation announcements' in the Surface water note.
Water market activity
In the Melbourne region, trade of water entitlements is allowed for take-and-use licences and water shares.
Permanent trade and lease of take-and-use licences is only allowed within management units; allocation trade does not occur. Accordingly, surface water trade reported for the Melbourne region during the 2013–14 year includes permanent trade and lease of take-and-use licences within unregulated waterways. Similarly, groundwater trade reported for the Melbourne region during the 2013–14 year includes permanent trade and lease of take-and-use licences within groundwater management units.
Under the conditions specified by the Victorian Trading Rules for Declared Water Systems, trading of water allocations is permitted in special circumstances only between the Thomson–Macalister system (outside the Melbourne region) to the Werribee system (within the Melbourne region); however, trading of water shares is not permitted between these two systems. Trading of water allocations and water shares between water systems in the Melbourne region and water systems outside of the Melbourne region did not occur during the 2013–14 year.
All values and information were sourced from the Victorian annual water trading report 2013–14.
Table 1 present a summary of surface water and groundwater trade in regulated (water shares) and unregulated (take and use licences) systems in the Melbourne region during the 2013–14 year.
| Transaction | Water share type | Number of trades | Volume (ML) |
| surface water entitlement transactions within region | high reliability | 23 | 530 |
| low reliability | 17 | 241 | |
| surface water take and use licences in unregulated waterways | 118 | 1,748 | |
| temporary trade of surface water take-and-use licences in unregulated waterways | 62 | 1,433 | |
| lease of surface water entitlement within region | high and low reliability water share | 31 | 670 |
| surface water allocation trades within region | high and low reliability water share | 94 | 3,020 |
| groundwater entitlement transactions within region | 41 | 2,630 | |
| lease of groundwater entitlements within region | 32 | 1,080 |
Water use
Economic, social and cultural benefit
Surface water and groundwater resources within the Melbourne region are used for urban water supply and irrigation scheme supply, as well as private water supply for purposes such as agriculture and industry.
Economic benefits
For a summary of the water volumes allocated for various economic purposes within the region, including the actual volumes abstracted, refer to Surface water rights and Groundwater rights above.
Social benefits
Some of the strategies for managing water for social benefit in the region are addressed through Water saving permanent rules, saving water through incentives and rebate schemes, and actions to increase urban water recycling and alternative water supplies which emphasises increase of stormwater and urban water recycling projects. Stock and domestic licences for surface water and groundwater basic rights allow the right holders to abstract water to meet basic requirements for household and stock purposes. Urban water entitlements associated with surface water and groundwater allow water utilities to provide water for residential needs.
Cultural benefits
Under the Victorian Water Act 1989 (the Water Act) traditional owner group entities have the right to take and use water for a range of needs without holding a water access licence. This includes accessing water for personal, domestic and non-commercial communal purposes such as: manufacture of traditional artefacts, hunting, fishing and gathering, recreation, cultural purposes, and ceremonial purposes. In general, water regimes required to support cultural values are not quantitatively defined in allocation plans; however, the cultural values are considered within the environmental water provisions.
Environmental benefit
Introduction
Information on legislative, administrative and governing arrangements of environmental water in the region is available in the Environmental water management section of the 'Contextual information'.
Water for environmental benefit in the Melbourne region is provided according to three different environmental water management scenarios:
- held environmental water
- planned, partly regulated surface water
- planned, unregulated surface water.
For each type of environmental water management scenario, the information, if available, is structured as follows:
- Environmental water determinations: the environmental objectives that define specific water levels and flow criteria at key representative sites that must be met.
- Environmental water commitments: the instruments in place to achieve the environmental water determination, for example, environmental water storage release rules, water access rules to limit abstractions, rules on diversion to wetlands, and annual environmental watering plans.
- Environmental water outcomes: the water levels and flow conditions that occurred during the year and the extent of the compliance with respect to the criteria set in the environmental water commitments.
Environmental entitlements: held environmental water
Environmental water determination
During the 2013–14 year three environmental water entitlements, held by the Victorian Environmental Water Holder (VEWH), applied to catchments within the Melbourne region:
- Tarago and Bunyip Rivers Environmental Entitlement 2009
- Consolidated Yarra Environmental Entitlement 2006
- Werribee River Environmental Entitlement 2011.
Each environmental water entitlement prescribes that an environmental flow regime must be adopted that describes the characteristics of recommended environmental flows for river reaches within the basin including their volume, timing, duration, and rate of change. These details can be found in Schedule 1 of each entitlement.
Environmental water commitment
The VEWH is entitled to:
- A 10.3% share of net inflows up to 3,000 ML of storage capacity in the Tarago Reservoir under the Tarago and Bunyip Rivers Environmental Entitlement 2009
- 17,000 ML of storage capacity in the Melbourne headworks system reservoirs not being used by the authorities under the Consolidated Yarra Environmental Entitlement 2006
- A 10% share of inflows into Lake Merrimu under the Werribee River Environmental Entitlement.
Environmental water outcome
The VEWH is required to report the annual volume of water released for the environment, the extent to which environmental flows have met the recommended environmental flow regime, and non-compliance with conditions of the entitlement. Melbourne Water Corporation manages environmental bulk entitlements to water from the Tarago, Werribee, and Yarra Rivers. During the 2013–14 reporting year, Melbourne Water delivered 13 separate environmental flows in the Werribee, Tarago, and Yarra rivers, delivering about 19,000 ML of water to improve river health and meet ecological objectives. As reported in Melbourne Water annual report 2013–14, the following releases were made:
- In the Yarra River, five managed environmental releases occurred, including the first billabong watering event.
- In the Tarago River, three environmental watering actions were delivered.
- In the Werribee River system five environmental watering actions were completed from the environmental entitlement.
Information provided here is reported in the Melbourne Water annual report 2013–14.
Bulk entitlements: planned partly regulated surface water
Environmental water determination and commitments
Bulk entitlements that are categorised as 'planned partly regulated surface water' are those where there is the provision to make operational releases from storages to provide minimum passing flows.
In the Melbourne region, this includes the following bulk entitlements:
- Southern Rural Water's bulk entitlement to the Maribyrnong River
- Western Water's bulk entitlement to the Maribyrnong River
- Melbourne Water's bulk entitlement to the Maribyrnong River
- The urban retail water authorities (City West Water, South East Water, and Yarra Valley Water) bulk entitlement to the Bunyip and Tarago rivers.
Bulk entitlements outline the rules that must be followed when taking or abstracting water, including minimum passing flows that must be maintained at certain compliance points. In these entitlements, water may be released from storage to maintain minimum flows.
For information on specific release and passing flow requirements for each of these entitlements,refer to the Victorian Water Register.
Environmental water outcomes
The bulk entitlement holder or responsible authority must submit to the Victorian Minister for Water a report detailing their compliance with the conditions of the entitlement (in particular the passing flows) during the year. This information is also typically contained in the responsible authority's annual report as a measure of compliance with all provisions of the bulk entitlement.
Bulk entitlements: planned unregulated surface water
Environmental water determination and commitments
Bulk entitlements that are categorised as planned unregulated surface water are those where abstraction is only permitted when minimum passing flow conditions are met.
In the Melbourne region, this includes:
- Southern Rural Water's bulk entitlement to the Werribee system for irrigation
- The urban retail water authorities (City West Water, South East Water, and Yarra Valley Water) bulk entitlement to the Yarra River
- Western Water's bulk entitlements to various sources in the Maribyrnong catchment (Gisborne–Baringo Creek, Lancefield, Macedon and Mount Macedon, Riddells Creek and Romsey), and to the Werribee system.
Bulk entitlements outline the rules that must be followed when abstracting water, including minimum passing flows that must be maintained at certain compliance points. For these entitlements, water may not be abstracted, or abstracted at a reduced rate where minimum passing flows are not maintained. In addition, environmental flow requirements for the bulk entitlements to water from the Yarra River are detailed in the State Environment Protection Policy.
Environmental water outcomes
The bulk entitlement holder or responsible authority must submit, to the Victorian Minister for Water, a report detailing their compliance with the conditions of the entitlement (in particular, the passing flows) during the year. This information is also typically contained in the responsible authority's annual report as a measure of compliance with all provisions of the bulk entitlement.
Stream flow management plans: planned unregulated surface water
Environmental water determination and commitment
Stream flow management plans (SFMP), local management rules, and drought response plans prescribe how water will be shared between users and the environment in an equitable manner (see Environmental water provisions for more details).
Environmental water outcomes
In accordance with Section 32C of the Water Act, Melbourne Water (which is responsible for administering and enforcing the SFMP) must submit to the Victorian Minister for Water a report detailing its compliance with the SFMP during the 2013–14 year.
Compliance with maintaining environmental flows was reported for all SFMPs in the 2013–14 year.
For more information, these reports can be found on the Melbourne Water website.