Surface water

Key legislation for managing surface water in the Melbourne region are Victoria's Water Act 1989 (the Water Act) and Victoria's Water Industry Act 1994 (the Water Industry Act). Under the Water Act, the Victorian Government retains the overall right to use and control flows of Victoria's surface water and to issue entitlements. The Water Act establishes the water entitlement framework for the allocation and management of the State's water resources. It sets out the functions, powers, and governance for Victoria's rural and regional water authorities and Melbourne Water. The Water Industry Act governs how Government-owned retail and regional water authorities are licensed and operate.

Groundwater

Groundwater in Melbourne region is managed through the 'take-and-use' licensing of water extraction for irrigation and commercial purposes. Aquifers are also protected through a bore construction licensing framework that controls the standards of bore–construction. Licensing powers are derived from the Water Act and are delegated by the Victorian Minister for Water. The Water Act provides for:

• licensing of drillers
• licensing of bore construction
• licensing of groundwater abstraction for irrigation and commercial purposes
• continuation of private rights to groundwater for domestic and stock use
• preparation of management plans in water supply protection areas (WSPAs).

The assessment of applications for new bore construction licences and groundwater extraction licences takes into account any adverse impacts on existing users, waterways, wetlands, and aquifers. The Water Act allows individuals to extract water for domestic and stock purposes from a range of surface water and groundwater sources without a licence. These domestic and stock rights are defined under sections 8(1) and 8(4)(c) of the Water Act and are not formally licensed.

Water management plans

Victoria's water entitlement and allocation framework provides the basis for the management of Victoria's water resources and governs the way water can be abstracted and used in Victoria. The framework takes a whole-of-system approach to water management in that it considers all water resources (surface water and groundwater) for both consumptive and environmental purposes at all phases of the water cycle. The main planning documents and initiatives that influenced water management in the Melbourne region during the 2016–17 year were:

• the Central region sustainable water strategy: this includes a series of actions and augmentations to meet the region's water needs for the next 50 years
• the Melbourne Water System Strategy: Melbourne Water's strategy for water resource management in Melbourne over the next 50 years
• Water for a future-thriving Melbourne: an overview of the common elements of urban water strategies outlining how the water corporations are preparing to meet the challenges of a growing city in a changing climate
• bulk entitlements authorising abstraction of water from Melbourne's rivers for urban and rural use
• environmental entitlements, surface water, and groundwater licences
• urban water authorities' water supply demand strategies
• urban water authorities' drought response plans
• rural water authority drought response strategy
• management plans for managing licensed diversions on unregulated streams and groundwater where the resource is in a declared WSPA.

Streamflow management plans in the Melbourne region are discussed in the Environmental water provisions section. Under Division 3 of Part 3 of the Water Act, groundwater management plans must be developed when a groundwater management unit (GMU) is declared a WSPA. In the Melbourne region, a groundwater management plan is in place for the Koo Wee Rup water supply protection area. It outlines the potential risks to groundwater in the area and management actions, including the permanent trading zones and rules. It also aims to protect water quality by managing use near the coast to reduce the likelihood of seawater intrusion into the aquifers.

In WSPAs, local management rules are developed that describe:

• the resource
• management objectives
• specific rules for restrictions in times of shortage, carryover (if applicable), and trade.

Local management rules cannot amend licence conditions.

Environmental water management

Environmental water legislation

The Victorian Environmental Water Holder (VEWH) is an independent statutory body responsible for making decisions on the best use of Victoria's environmental water entitlements. It collaborates with catchment management authorities and Melbourne Water to achieve the best environmental outcomes with the existing environmental entitlements. Within Victoria, the environment's share of water is called the 'Environmental Water Reserve'. The Environmental Water Reserve is defined in Section 4A of the Water Act and is made up of:

• entitlements for the environment
• water set aside for the environment through the operation of conditions on consumptive water entitlements and provisions in water supply management plans
• above–cap water that includes water left over after limits on diversions are reached, and unregulated flows that cannot be held in storage.

Environmental water provisions

Environmental entitlements

An environmental entitlement is a right to water made by the Victorian Minister for Water and held by the VEWH. As with bulk entitlements, environmental entitlements provide a range of conditions and obligations relating to the abstraction and use of water. During the 2016–17 year, the VEWH held three environmental entitlements in the Melbourne region:

• Consolidated Yarra Environmental Entitlement 2006 (revised in July 2014)
• Tarago and Bunyip Rivers Environmental Entitlement 2009 (revised in June 2014)
• Werribee River Environmental Entitlement 2011.

Water access entitlements: environmental water provisions

In addition to environmental entitlements, the Environmental Water Reserve comprises:

• water set aside for the environment through the operation of passing flows released as a condition of consumptive bulk entitlements held by the Melbourne's water authorities (planned partly regulated surface water)
• water set aside for the environment through the operation of passing flow conditions on licensed diversions in regulated and unregulated waterways (planned unregulated surface water)
• water set aside for the environment through the operation of streamflow management plans including operation of passing flow conditions on licensed diversions (planned unregulated surface water)
• all other water not allocated for consumptive use (i.e. water above the cap).

Waterway management

Waterway management and general river health management is the responsibility of the Port Phillip and Westernport Catchment Management Authority and Melbourne Water. Streamflow management plans are managed by Melbourne Water. Streamflow management plans were in place for the 2016–17 year for:

• Hoddles Creek
• Little Yarra and Don rivers
• Olinda Creek
• Plenty River
• Stringybark Creek
• Pauls, Steels and Dixon creeks
• Woori Yallock Creek.

Local management rules are available for several areas that have a level of demand lower than WSPA catchments. They set the rules to share water within the relevant sub-catchments. In addition to streamflow management plans and local management rules, drought response plans are active at all times to protect the environment. During a drought, licensed diverters’ access to water may be restricted or banned under drought response plans. For more information on the individual streamflow management plans, local management rules, and drought response plans, please refer to Stream Flow Management Plans on Melbourne Water's website. 

Further information on environmental water is available in Water Access and Use: Environmental benefit.

Cultural water management

The Victorian Aboriginal Heritage Act 2006 recognises the Aboriginal people as traditional owners of the land. The waterways within the Melbourne region are important to cultural beliefs of traditional owners including the Wurundjeri, Wathaurung, and Bunurong people. The Water Act recognises the right to take water under the Victorian Traditional Owner Settlement Act 2010. Members of a traditional owner group with a natural resource agreement can take and use water from a waterway or bore for traditional, non-commercial purposes.

Organisations responsible for water management

Table R1 lists the organisations responsible for water management and their specific roles within the Melbourne region during the 2016–17 year.