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DSE2971 GP Ch5 FA LM Securing Our Water Future Green Paper for Discussion Published by the Victorian Government Department of Sustainability and Environment Melbourne, August 2003 Also published on www.dse.vic.gov.au © The State of Victoria Department of Sustainability and Environment 2003 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Authorised by the Victorian Government, 8 Nicholson Street, East Melbourne. Printed by Vega Press ISBN 1 74106 631 X For more information contact: Department of Sustainability and Environment PO Box 500, East Melbourne Victoria 3002 © State of Victoria, Department of Sustainability and Environment 2003 Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Find out more information about DSE on the internet at www.dse.vic.gov.au Securing Our Water Future 1 Contents Premier’s and Minister’s Forewords 3,5 Executive Summary 6 Chapter One: The Challenge We Face 11 Drivers for Change 12 The Goal: Sustainable Management of Water 13 Getting Back Into Balance 14 Chapter Two: Water Resources and Their Allocation 19 Water Allocation in Victoria 20 A Framework for Sustainable Water Allocation 24 Giving Legal Recognition to the Environmental Reserve 27 The Environmental Reserve: Cautious Limits to Avoid Over-Allocation 28 The Environmental Reserve: Caps for Stressed Rivers 29 Managing the Allocation System Responsibly 31 Chapter Three: Smarter Water Use in Our Cities and Towns 35 Challenges for Urban Water 36 How to Meet the Challenge 37 Reducing Water Consumption in Urban Victoria 41 Substituting Recycled and Reclaimed Water for Drinking (Potable) Water 46 Increasing Our Available Water Supply 52 Chapter Four: Smarter Use of Irrigation Water 57 A Range of Irrigated Enterprises 59 Further Improvements Possible on Farms 60 Reconfiguring Distribution Services 62 Developing the Water Market 64 Minimising Side-Effects from Watering 70 Chapter Five: Dealing With Stressed Rivers 73 Tackling All the Aspects of River Health 75 Approaches to Restoring Flows 76 Savings to be Made in Distribution Systems 78 Other Methods for Retrieving Flows 80 Managing the Environmental Reserve 83 Chapter Six: Pricing for Sustainability 87 Structure and Design of Prices Driving Sustainable Use 89 Pricing to Reflect the Needs of the Environment 93 Pricing to Recover Service Delivery Costs 94 Chapter Seven: An Innovative and Accountable Water Sector 101 Existing Arrangements 102 Looking to the Future 105 Improved Capability and Effectiveness 106 Improved Allocation of Roles and Responsibilities 108 Improved Integration and Coordination 112 Incentives for Innovation and Improved Performance 114 The Way Forward 117 Glossary of Terms 118 Appendices 120 Abbreviations 135 Figures and Tables 136 Summary of Proposals 137 We need to build an ethic throughout the community of water conservation. We need to cut our water use wherever we can, recycle and reuse wherever possible, put our water to the highest value use where we do use it and restore our rivers and streams to safeguard our water systems in the future. Securing Our Water Future 3 Premier’s Foreword Water is fundamental to all Victorians, whether we live in the greater Melbourne area, in regional centres or farm the countryside. Access to a quality water supply is a key foundation of our economy, society and the environment. The availability of water has shaped the face of Victoria This Green Paper continues the process of engaging the as we see it today. Access to water has determined the Victorian community in meeting this challenge. The location of numerous towns, enabled the growth of Government has set broad targets and allocated funds agriculture and influenced where we take our holidays. through the Victorian Water Trust to start the process Melbourne’s growth has been underpinned for over a of investing in more efficient water usage. We now century by the harnessing of the Yarra catchments and need to discuss the details of how we should tackle the construction of Melbourne’s sewerage system. problem, where we should start and when we expect to see significant change. Although we live on the driest inhabited continent, we are one of highest users of water per person. For I invite all Victorians to join in this discussion by a clever country, we have been very slow to realise this informing themselves about the water sector and and to start to tackle it. commenting on the options outlined in this Green Paper. The Government will use this input to determine Our challenge now is to change current patterns of priorities, which will be announced through a White consumption in time to protect our future. We need to Paper in early 2004. use water more efficiently and develop a more sustainable approach to agriculture at the same time as restoring the health of the environment. This means changing our entire approach and our mind-set to the management of water. We need to build an ethic throughout the community of water conservation. We need to cut our water use wherever we can, recycle and reuse wherever possible, put our water to the highest value use where we do use it and restore our rivers and streams to safeguard our water Steve Bracks systems in the future. Premier of Victoria This is the challenge facing all Victorians. Meeting it will require change – change in the management of water in every sector of our community – in our homes, cities and towns and on our farms. It will require some hard decisions, strong leadership and community support. It will need innovation and smart management. Our vision is that by better addressing the environmental needs of Victoria’s rivers and catchments, we will improve the productivity of our irrigation industries and ensure sufficient water for Victoria’s long term growth. Securing Our Water Future 5 Minister’s Foreword Water is a central part of our everyday lives. We use it for drinking, washing, watering, producing food. We use it for swimming, boating, canoeing and fishing. We picnic and holiday near rivers and lakes. We build our houses with views of the water. Looking to the future it is becoming increasingly clear Three further chapters address how the water sector is that our current water use is not sustainable. The organised and proposes: environmental quality of our water resources are under >> New arrangements for the allocation of water to serious pressure, our water supply is limited and our provide recognition for the environment and demands are increasing. certainty for farmers These stark realities have been brought sharply into >> Principles for future pricing reform to ensure that focus by the current severe drought. However, they are water is sustainably priced long term in nature, and require a long term solution not just a temporary one for this drought. This Green >> Proposals for encouraging an innovative and Paper sets out proposals for how we can address the accountable water sector. challenge of ensuring that we use our water sustainably in all parts of our State. Over the coming months we will be undertaking extensive consultation in communities across Victoria Our vision is that by better addressing the and I invite all Victorians to take part in this process and environmental needs of Victoria’s rivers and make their contribution to securing our water future. catchments, we will improve the productivity of our irrigation industries and ensure sufficient water for Victoria’s long term growth. We can achieve this by investment in water conservation and recycling and returning flows to our rivers whilst reforming water allocation and pricing to balance the needs of people, farms and the environment. This Green Paper is built around three chapters that analyse our major water needs: John Thwaites >> Water for people – smarter urban use of water Deputy Premier, Minister for Water >> Water for farms – smarter irrigation use of water >> Water for the environment – improving river health through extra flows and smarter management of those flows. Executive Summary Water is essential to the success of our economy, the health of our environment and the well-being of our society. Our goal is to achieve sustainable water management and ensure that we enjoy all the benefits of water in ways that do not reduce the choices of future generations. Sustainable water management will be characterised by: >> Reliable and safe urban water and sewerage services as demanded by customers. >> A high value, low impact irrigation industry, supported by robust rural and regional communities. >> Healthy rivers, floodplains, estuaries and catchments, capable of delivering a wide range of water services in a sustainable way. >> Communities that truly appreciate all the services water provides and are able to make considered choices about how those services are to be valued and delivered. >> Communities with a strong ethic of water conservation, that aim for the most efficient use of water and the highest valued mix of services. >> An efficient and accountable water sector that fosters innovative ways to manage water and deliver diverse water services. Securing Our Water Future 7 The Challenge We Face Water Resources and 1 2Their Allocation There are a
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