Melbourne: Water access and use
Approximately 90% of the region's surface water entitlements are for urban water supply. The groundwater entitlements are mainly for individual users. Water use increased by 6% during the year, which reflects the increased demand across the region for both surface water and groundwater.
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 2016 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 2016 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 2015–16 year have been classified as shown below.
Surface water rights
Surface water rights in the Melbourne region during the 2015–16 year refer to:
- Non-allocated diversion to individual users—66,190 ML
- Allocated diversion to individual users—22,733 ML
- Allocated diversion to the urban water system—850,085 ML
- Inter-region—4,825 ML.
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.
Allocated diversion to individual users represent the volume of water allocated in the Bacchus Marsh Irrigation District, Werribee River, and Werribee Irrigation District. Surface water right is not a bulk entitlement held by Southern Rural Water. The volume represents high-reliability water shares, low-reliability water shares and entitlements for supply by agreement.
Allocated diversion to the urban water system represents the total volume of various bulk entitlements held by water authorities for urban supply. The volume:
- includes 150,000 ML entitlements from the Victorian Desalination Plant;
- includes entitlements for the Thomson River and Silver and Wallaby creeks sources (within the Greater Yarra System–Thomson River Pool entitlements);
- includes 75,000 ML entitlements for water in the Goulburn and Murray System;
- excludes bulk entitlements equal to 22,825 ML held by external water authorities for water within the Melbourne region.
Allocation announcements for the urban water system represent the volume of water effectively allocated under respective bulk entitlements held by Melbourne's retail water authorities.
The volume of surface water entitlements, corresponding water allocations, and volumes of diversions for the 2015–16 year compared with the previous year are shown in Figure S12. The percentage shows the ratio of diversion to the water access entitlement.
Figure S12 Surface water access entitlements, allocations and diversions in the Melbourne region for the years ending 30 June, from 2012–2016
Figure S12 shows that diversions for individual users (allocated) decreased by 38% during the 2015–16 year compared with the previous year as a result of decreased water availability (see Figure S13). The diversion for individual users comprised announced allocations, carryover volume from previous year and net allocation trade.
The urban system, allocation increased during the 2015–16 year from that of the previous year, as more water was received from the Thomson Reservoir in the form of inter-region transfer. This reflects below average inflows to the reservoirs within the region, increased demand by users, and increased water availability in Thomson Reservoir. Diversions during the 2015–16 year also increased from the previous year.
Allocation diversion for inter-region supply is for Gippsland Water, which operates outside the region (Figure S12).
Figure S12 does not include carryover volumes from the previous year. Carryover 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 S12 are not a true reflection of actual water availability. Figure S13 shows total water diversions including non-allocated diversions for individual users, and total water availability that include announced allocations and carryover volumes.
Figure S13 Total surface water availability and total diversions in the Melbourne region for the years ending 30 June, from 2012–2016
Groundwater rights
Groundwater rights in the Melbourne region during the 2015–16 year refer to groundwater supply for:
In the Melbourne region, groundwater is mainly extracted by individual users. Extractions for urban purposes are a very small volume. Groundwater allocations in the region were equal to 100% of the water access entitlement during the 2015–16 year as restrictions were not announced.
The volumes of groundwater allocation and extraction for the 2015–16 year compared with the previous four years are shown in Figure S14. The percentage shows the ratio of extraction to the allocation announcement.
Figure S14 Groundwater access entitlements, allocations and extractions in the Melbourne region for the years ending 30 June, from 2012–2016
Figure S14 shows that the entitlements, allocation announcements, and groundwater extraction for individual users during the 2015–16 year increased from that of the previous year due to reduced surface water availability to individual users. Volumes for stock and domestic use in unincorporated areas for the 2015–16 year are also included in Figure S14.
Water access restrictions
During the 2015–16 year, restrictions 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, Land, Water, and Planning monthly water reports.
Announced allocations restrict water use (primarily irrigation) in the Bacchus Marsh Irrigation District, Werribee River, and Werribee Irrigation District. During the 2015–16 year, high-reliability and low-reliability entitlement holders received allocations of 15% and 0% respectively, due to very low inflows into storages in the Werribee and Marybyrnong catchments. Last year allocations were 70% and 0% for high and low reliability share holders respectively.
During the 2015–16 year, the three urban water retailers (Yarra Valley Water, South East Water and City West Water) and the rural retailer Western Water had Permanent Water Savings Rules in place.
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 or temporary trade 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 2015–16 year includes permanent trade and temporary trade of take-and-use licences within unregulated waterways. A take–and–use licence is either a fixed term or ongoing entitlement to take and use water from a waterway, catchment dam, spring, soak or aquifer (Department of Environment, Land, Water and Planning) Similarly, groundwater trade reported for the Melbourne region during the 2015–16 year includes permanent trade, temporary trade and lease of take-and-use licences within groundwater management units.
In the Bacchus Marsh Irrigation District, Werribee River, and Werribee Irrigation District, permanent and allocation trades and lease of high-reliability water shares as well as low-reliability water shares are allowed. 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 occur during the 2015–16 year.
All values and information were sourced from the Victorian annual water trading report 2015–16.
Table S12 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 2015–16 year.
| Transaction type | Number of trades | Volume ML |
| Surface water entitlement transactions within region | ||
| high-reliability | 49 | 1,544 |
| low-reliability | 46 | 713 |
| permanent trade of surface water take–and–use licences in unregulated waterways | 106 | 1,637 |
| Surface water allocation transactions within region | ||
| temporary trade of surface water take-and-use licences in unregulated waterways | 74 | 1,295 |
| lease of surface water entitlement within region: high-reliability water shares and low-reliability water shares | 3 | 34 |
| surface water allocation trades within region and external sources (bought) | 5,582 | 204 |
| surface water allocation trades within region and external sources (sold) | 2,282 | 200 |
| Groundwater transactions within region | ||
| groundwater entitlement transactions | 53 | 2,051 |
| lease of groundwater entitlements | 57 | 1,317 |
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 for 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 the 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 'Region description'.
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.
Environmental entitlements: held environmental water
Environmental water determination
During the 2015–16 year three environmental water entitlements, held by the Victorian Environmental Water Holder (VEWH), applied to four catchments within the Melbourne region:
- Consolidated Yarra Environmental Entitlement 2006 (revised in July 2014)
- Tarago and Bunyip Rivers Environmental Entitlement 2009
- 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:
- under the Consolidated Yarra Environmental Entitlement 2006 July 2014, the first 17,000 ML of net inflow into the Yarra headworks system for each year and 17,000 ML of storage capacity in the Melbourne headworks system reservoirs not being used
- under the Tarago and Bunyip Rivers Environmental Entitlement 2009, a 10.3% share of net inflows up to 3,000 ML of storage capacity in the Tarago Reservoir
- under the Werribee River Environmental Entitlement, a 10% share of inflows into Lake Merrimu.
Environmental water delivered
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 manages environmental bulk entitlements to water from the Yarra, Tarago, and Werribee rivers. During the 2015–16 year, Melbourne Water delivered ten separate environmental flows in the Yarra, Tarago, Maribyrnong and Yarra rivers, delivering 11,676 ML of water to improve river health and meet ecological objectives as reported in Victorian Environmental Water Holder (2016) and Melbourne Water annual report 2015–16.
The following releases were made in the following four river systems:
- In the Yarra River system, four releases of environmental water totalling 8,817 ML were made to maintain habitat for fish and macroinvertebrates throughout the river and to improve the water quality of the Dights Falls weir pool during summer months.
- In the Tarago River system, three releases totalling 2,117 ML were made to maintain water quality, provide habitat for river blackfish, platypus and macroinvertebrates and support spawning of Australian grayling.
- In the Maribyrnong River system, two releases totalling 302 ML were made when the river was especially low: one in January and one in March. These provided much needed relief for fish, waterbugs and other animals by restoring oxygen levels, particularly in the upper sections of the system at Jacksons Creek. They also helped keep terrestrial plants from encroaching into the river channel.
- In the Werribee River system, three releases totalling 440 ML were made to provide habitat for frogs and macroinvertebrates in Coimadai Creek and to improve water quality and promote fish migration in the lower reaches in and around Werribee.
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 and 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 delivered
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
- Melbourne Water's 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. In addition, environmental flow requirements for the bulk entitlements to water from the Yarra River are detailed in the Victorian State Environment Protection Policy.
Environmental water delivered
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.
Streamflow management plans: planned unregulated surface water
Environmental water determination and commitment
Streamflow 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 2015–16 year.
Compliance with maintaining environmental flows was reported for all SFMPs in the 2015–16 year.
For more information, these reports can be found on the Melbourne Water website.