Water Services

One of G-MW's core business functions is to manage water resources as the Government appointed Resource Manager for northern Victorian water systems. The other functions include implementing Government regulations and policy for surface and groundwater, water share and allocation trading, water use licensing, and making the seasonal allocation determinations for all Victorian Murray entitlement holders. G-MW's responsibility also includes compliance, billing administration and customer service.

Historical Seasonal Allocations for G-MW's Regulated Systems

Water Availability in Regulated Systems

For the fourth consecutive year, there was no allocation announced on 1 July. However, water availability rapidly improved and by 16 August 2010 all systems had an allocation of 20% of high reliability water share (HRWS). This was the first time since 2002 that every system had an allocation at the start of the irrigation season. Allocations in all systems reached 100% HRWS by 15 November. Entitlement holders in the Broken, Campaspe and Bullarook systems also all received a 100% low reliability water share (LRWS) allocation, the first time any allocations had been made for LRWS.

2010/11 Seasonal Allocations

Water Trading

High seasonal allocations coupled with large volumes of water carried over from the previous year and low irrigation demand meant there was less reliance on trade to source water allocation. Consequently, there was a substantial reduction in water allocation trade application numbers in 2010/11. The total number of applications processed was 3,205 which compared to 7,846 in the previous year. While the number of applications processed in 2010/11 was significantly lower than last year, the volume of water traded was high in comparison with 1,130, 930 ML traded compared to 603,997ML in the previous year. This was partially due to increased activity by environmental and institutional water owners transferring water allocation between their accounts. Trade suspensions were introduced by the Victorian Minister for Water in April and May 2011 aimed at protecting the seasonal allocations available to Victorian entitlement holders for 2011/12.

Business Transactions

G-MW improved processing timeframes for water trading applications in 2010/11 through the development and implementation of a new tailored business system. This initiative was introduced for water share trading in July 2010 and allocation trading in March 2011 and saw average processing times reduce by approximately 50%.

In its role as delegate for the Minister for Water, G-MW processes applications relating to water entitlements, delivery shares and licensing in the Victorian Water Register. As a major partner in the Water Register, which is managed by DSE, G-MW continues to play a lead role in the development of policy and improvements relating to the system. In 2010/11the Water Register underwent a substantial program of enhancements aimed at improving the management of water entitlement data, land information, licensing records and interstate trading.

Business Transactions Processed by G-MW

2010/11 Water Share Ballot

In early July 2010 G-MW held a ballot to determine the order in which water share trade applications subject to the annual 4% trade-out limits were processed. In total 877 applications for just under 130,000 ML of water shares were lodged during the three week ballot lodgement period with the majority of entitlement holders seeking to sell water shares to the Commonwealth Government under the water entitlement buyback program.

The 4% limits were reached in all of the major Irrigation Areas during the ballot processing period with a total of 588 applications or 75,100 ML of water shares approved for transfer.

Bore Construction Licences

Seasonal conditions saw a significant reduction in the number of bore construction licences issued in the 2010/11 irrigation season. For the first time in many years customers were able to rely on surface water access and did not seek to construct groundwater bores as a method of securing an alternative source of water.

Carryover by G-MW Customers

The 2010/11 marked the first season customers on the Goulburn, Campaspe and Murray system had unlimited carryover due to the further extension of carry over rules which removed the 100% of water share limit provided that there was sufficient storage capacity available. Many water users had large volumes of unused allocation in 2009/10 due partly to the late increases in seasonal allocations. At the start of 2010/11, G-MW customers had carried over about 588,000 ML of unused allocation from the previous season. This was over three times the volume carried over into the 2009/10 season.

Carryover Brought forward (GL)

Spillable Water Accounts and Spill Declaration

For each water share holder with a linked water use licence, any allocation that was unused at the end of the 2009/10 season in the Murray, Goulburn and Campaspe systems that was above the volume of 100% of HRWS and 100% of LRWS was carried over in Spillable Water Accounts (SWAs). Water remains in SWAs until the declaration that the probability the storage will spill is low.

On 1 July 2010, the Resource Manager for Northern Victoria determined that the probability of spill at Lake Eildon, Dartmouth Reservoir and Lake Eppalock was low which enabled water in SWAs to become available for use or trade in the 2010/11 season.

Northern Region Sustainable Water Strategy

The Northern Region Sustainable Water Strategy (NRSWS) was released by the Victorian Government in November 2009. The strategy addresses water management challenges and risks including those arising from drought and climate change through 17 new policies and 51 actions to implement those policies. Since the NRSWS was released G-MW has been working on implementating of the actions. Water users have benefited from the completed actions including the introduction of the Goulburn system reserve policy, extended carryover provisions and new dairy wash licensing. The return flow pilot study was completed and rules developed and implemented.

Work is continuing on actions such as; new Reserve Policy in the Murray system, trading rules in the Ovens/King and Broken basins, carryover rules in the Loddon, Broken and Bullarook systems, registration of Domestic and Stock (D&S) dams in rural residential areas, developing reasonable D&S use guidelines, review of guidelines and licence conditions and review of records for unregulated stream and groundwater licenses, local management rules for unregulated streams and groundwater systems, development of Management Plans for the Lower Campaspe, Loddon Highlands and Upper Ovens areas, new reticulation systems for D&S rights for environmental deliveries in irrigation delivery systems, review of riparian management plans and development of revised salinity management arrangements. The work on these initiatives will continue through 2011/12 and be implemented progressively.

Qualification of Rights

Qualifications of Rights declared by the Minister for Water continued to give customers access to water for specific purposes including use inside the home, stock watering and dairy washdown during periods early in the season when water availability was low. Qualifications of Rights for the Murray, Goulburn and Broken systems were revoked in October 2010 once allocations exceeded critical thresholds. Qualifications of Rights remained in effect in the Loddon and Campaspe systems until they expired on 30 June 2011, to ensure aspects of the Qualifications relating to minimum passing flows could continue.

Goulburn System Water Quality Reserve

The Goulburn Bulk Entitlement (BE) Order requires G-MW to set aside or reserve 30,000 ML annually to make provision for a source of water to address water quality risks in the Goulburn River and lower Broken Creek systems. This provision is sometimes referred to as the Goulburn Water Quality Reserve. The history of use of this provision is shown in the following table.

Gouldburn Systems Water Quality Reserve History

Environmental Watering

The focus of environmental watering changed from managing low volumes in 2009/10 to responding to water quality issues associated with higher flows following some of the highest stream flows for over 15 years. When low dissolved oxygen levels in the River Murray were identified, water from the Living Murray entitlements in the Goulburn was used to attempt to raise the oxygen levels in the River Murray. As the low dissolved oxygen levels spread to the Goulburn River, further water was sourced from the Murray Flora and Fauna, Goulburn Water Quality Reserve and the Commonwealth Environmental Water Holder.

During periods of unregulated flows in the River Murray, water was delivered to Round Lake, Cullens Lake, Hird Swamp and McDonald’s Swamp.

The Barmah-Millewa forest was flooded on a number of occasions from high tributary flows upstream of Yarrawonga. To ensure flows through the Barmah-Millewa forest remained high enough to encourage bird breeding after the upstream tributary flows had receded, flows in the River Murray were supported from the Living Murray and Barmah-Millewa Forest entitlements.

The Commonwealth Environmental Water Holder provided water for environmental flows in the Goulburn, Broken, Campaspe and Loddon Rivers during 2010/11.

The Basin Plan

The MDBA continued to prepare the Basin Plan, as required by the Commonwealth Water Act (2007) throughout 2010/11. The Basin Plan is a management plan for the surface waters, groundwater and environmental resources of the Murray- Darling Basin which will set the framework for the Water Management Plans to be prepared by each State Government. The Basin Plan will, amongst other things, set the sustainable diversion limits (SDLs) on the quantities of water that can be used. SDLs are intended to ensure that sufficient water remains in the rivers to provide for long term sustainability.

G-MW participated in the MDBA forums, workshops and meetings of stakeholders and expert reference panels prior to and following the release of the Guide to Draft Basin Plan in October 2010. The Guide was released to gauge public reaction to a range of water recovery scenarios. Comment was sought with the intention to release the draft Plan in early 2011.

The draft Plan indicated significant reductions to the diversions in river basin managed by G-MW and entitlements by G-MW customers, and changed groundwater management arrangements. These changes had potentially serious effects on the future viability of irrigation. G-MW prepared a response, which included comment from the Water Services Committees, and this was lodged in December 2010.

Following the MDBA’s public engagement phase in late 2010, a series of further enquires were undertaken. G-MW made representations to these enquires and to the fact-finding delegations which have visited the region. The MDBA is now preparing the draft Basin Plan for release in 2011.

eWater CRC

eWater CRC is developing water management software for its partners. G-MW is a partner of eWater and through our investment in funding and in-kind staff support will share in the advancement of water management technology. G-MW has been a funding partner of the eWater CRC since its inception and 2010/11 was the sixth year of the seven year program life.

eWater Source is an integrated ecohydrological modelling platform for water resource planning and management which addresses the full water cycle. This system is designed to meet the hydrological modelling needs of Australian governments, agencies and authorities, including G-MW, for at least the next decade. For G-MW, the two key products in this platform are Source Rivers, previously known as River Manager, and Source Catchments, previously known as WaterCAST.

G-MW is contributing to the development and testing of Source Rivers through the provision of staff from the Water Resources Unit with river and storage operating experience. Source Catchments continues to be used for the development of water quality models and the emphasis has been on the Lake Eppalock catchment for the application of this model. G-MW is contributing to the northern Victorian focus catchment project through the provision of data and advice from staff experienced in river operations and water quality management. This project applies the eWater software tools to improve understanding of the flows and ecological responses in the Goulburn and Ovens Rivers.

Dairy Shed Water Licensing Transition Program

The issuing of licences under the Dairy Shed Water Licence Transition Program is now well underway, with just over 240 licences already issued or increased. However in some areas dairy shed groundwater licences cannot be issued until entitlement caps, known as Permissible Consumptive Volumes (PCVs), are adjusted. G-MW will shortly provide the information necessary to allow these PCV changes to take place. Once these PCVs are changed; which is expected later in 2011, the remaining licences can be issued.

Groundwater

G-MW has the responsibility for licensing and managing about half of Victoria’s groundwater resources and has a vital role in ensuring groundwater use is sustainable. G-MW is also delegated to issue licences to take and use groundwater under the Water Act 1989 and, in doing so, making sure needs of existing water users and the environment are considered.

During 2010/11 G-MW successfully completed a number of important groundwater resource appraisal projects to provide the technical understanding required to develop Local Management Rules and Management Plans, including:

  • Drilling 77 new monitoring bores under the State Observation Bore Refurbishment Project, taking the total to 192 across the G-MW region.
  • Groundwater appraisals in the Goulburn- Broken Catchment, Mineral Springs region of Central Victoria, Ovens and King Valleys.
  • Gaining important insights from 3D mapping of aquifers in the Loddon and Campaspe Catchments.

Improvement in groundwater resource position

Aquifer levels across G-MW's region recovered significantly during 2010/11 as a result of above average rainfall and flooding. A positive aspect of the summer floods has been the response seen in aquifers, particularly in the Loddon and Campaspe catchments. Many observation bores showed groundwater levels similar to those seen nearly a decade ago.

Groundwater management and planning

Shepparton Irrigation Region - towards a new management framework - G-MW is undertaking a National Water Commission (NWC) funded water resources project to develop a new groundwater management framework for the Shepparton Irrigation Region Water Supply Protection Area (WSPA). The WSPA for this shallow alluvial aquifer extends from Rochester in the west to Yarrawonga in the east and from Murchison in the south to the Murray River. A new more flexible management framework is required to facilitate groundwater pumping during wet periods to reduce the risk of shallow groundwater salinity impacts, as well as maintaining access to groundwater during droughts. The project, due for completion in December 2011, involves significant stakeholder consultation and social research into groundwater user behaviours and aspirations. This information will be vital to the development of new management arrangements.

Improving alignment of groundwater management between Victoria and NSW - The objective of a second NWC funded project is to investigate the opportunity for greater alignment of groundwater management across the New South Wales - Victoria border. This project will culminate in a strategic workshop bringing together groundwater decision makers from Victoria, NSW, the MDBA and the National Water Commission. The project is scheduled for completion in December 2011.

Upper Ovens River Water Management Plan draft completed - Managing groundwater and surface water as a single resource is the focus of a draft management plan just completed by the Upper Ovens River Water Supply Protection Area Consultative Committee. As at June 2011 the Draft Upper Ovens Water Management Plan has been completed after having being released for public comment in April and following community consultation meetings.

New Management Plans being developed in Lower Campaspe Valley and Loddon Highlands Water Supply Protection Areas - During 2010/11 two consultative committees were appointed to draft groundwater management plans for the new Lower Campaspe Valley and Loddon Highlands Water Supply Protection Areas. Plans will consider trigger levels and associated seasonal restrictions, rules for transfer and carry over of water entitlements, as well as monitoring and reporting requirements. The committees will consult with communities before completing their groundwater management plans by March 2012 for submission to the Minister for Water for approval.

Urban Groundwater Use

Temporary Groundwater Trading Summary