Groundwater Capital Charge

The majority of the Goulburn-Murray Water’s region is managed under groundwater management units (GMUs). Each of these GMUs has been assessed hydrogeologically and sustainable caps for total groundwater entitlement have been established. If the total currently held entitlement is lower than a GMU cap then a landowner or occupier can apply for to purchase groundwater entitlement subject to normal application assessment requirements and payment of the capital charge. Table 1 (under the Where is groundwater entitlement available under capital charge?section)provides a list of GMUs, and where water is currently available under capital charge.

If the total volume of groundwater entitlement held in a GMU is equal to the cap then entitlement can be traded (either temporary or permanent) from another licence holder in accordance with the trading rules that apply to the GMU.

In general, new licence entitlement for groundwater is not available within Water Supply Protection Areas (WSPAs), or where the current licence entitlement is nearly equivalent to the applicable cap.

Table 1 below shows the areas where additional groundwater licence entitlement is available (at the time of publication) and the associated Groundwater Sustainable Diversion Limit (as determined by the Murray Darling Basin Authority).

Table 1: Groundwater Management Unit within GMW and the availability of additional groundwater entitlement*

*Correct at the time of publication

In addition to the GMUs listed above. Application may also be made for new groundwater licensed entitlement from the area in which GMUs currently do not apply. These include the areas around Bendigo, to the West of Inglewood in the West of our region and the area east of Wodonga to Brimin in the northern part of the Ovens Valley.

The areas relating to the different zones were groundwater under capital charge is available and is shown below in Figure 1. The map also shows the SDL zones with the defined areas overlain.

To confirm the availability of groundwater capital entitlement; or to get more information; you are encouraged to contact GMW on 1800 013 357.

Figure 1 - Click to enlarge

The two charges that apply to the groundwater capital charge reflect the specific location of the application, the quality extracted, the need to treat of blend the groundwater with surface water; and the market value of the resource.

For applications in the Sedimentary Plains to depths of 25 meters, GMW has recognised that there is value in extracting entitlement to help manage localised saline water tables. Therefore a decision was made to apply the same benefits as those afforded to the Shepparton Irrigation Region GMA.

Applications for capital charge groundwater entitlement in the Sedimentary Plains from depths greater than 25 meters takes into account the quality of the resource. If the water quality has a salinity reading of 4,800EC or above, the charge applied per ML is $180. This is intended to reflect that the water is of poor quality and will need to be treated at additional cost; or blended with an alternative source such as surface water.

Where entitlement is intended to be extracted below 25 meters and the water quality is less than 4,800EC a rolling two year average market price of groundwater will be applied. GMW will review the rolling average each year.

The capital charge applicable to each area and the relative salinity considerations is shown below in Table 2.

Table 2

You may also apply for a licence from any bore across GMWs region constructed greater than 200m in depth, however if you wish to do consider this option you should consult with GMW to discuss your requirements.

GMW encourages prospective applicants to discuss their intensions with them prior to making application. GMW can provide you with information that will help inform your decision to proceed.

Applications for water at depths greater than 25 meters will require an independent water test to be completed to confirm whether the quality is higher than the 4,800EC threshold.

To learn more about groundwater capital entitlement please contact GMW on 1800 013 357.