HEALTHY RIVERS HEALTHY COMMUNITIES & REGIONAL GROWTH

VICTORIAN RIVER HEALTH STRATEGY

Department of Natural Resources and Environment © The State of , Department of Natural Resources and Environment, 2002

Acknowledgements This Strategy was prepared with the guidance and support of a Reference Committee and a Scientific Panel.

Reference Committee members: Christine Forster (Chair - Victorian Catchment Management Council), Paul Weller (Victorian Farmers’ Federation), Freya Merrick/Dr Paul Sinclair (Environment Victoria), Dr Stuart Blanch (Australian Conservation Foundation), Geoff Cramer (VRFish), Lance Netherway (Rural Water Authorities), Jenny Jelbart (Urban Water Authorities), Sarah Nicholas (Catchment Management Authorities), Peter Lyon/Nina Rogers (Municipal Association of Victoria), Duncan Malcom (Victorian Coastal Council), Ian Christie (Parks Victoria), Kevin Wood (Melbourne Water), Doug Newton/Jennifer Wolcott/Chris Bell (Environment Protection Authority), Rod Gowans (Parks, Flora and Fauna Division, NRE) and Campbell Fitzpatrick (Catchment and Water Division, NRE).

Scientific Panel members: Professor Barry Hart (Monash University), Professor Sam Lake (Monash University), Dr Ian Rutherfurd (University of Melbourne), Professor Tom McMahon (University of Melbourne), Dr John Tilleard (University of Melbourne) and Lisa Dixon (Environment Protection Authority).

Guidance was also provided by the members of the Victorian Waterway Managers Forum and an NRE Contact Group of representatives from NRE divisions and regional services.

The NRE Project Team for the preparation of the Strategy consisted of Dr Jane Doolan, Julia Reed, Alieta Donald, Katrina Whelen and Carol Roberts.

Photographs by Roxanne Oakley

Designed by AD[ART] DESIGN

Printed by McLaren Press

For copies of this Strategy, please call the NRE Customer Service Centre on 136 186.

Find more information about NRE on the Internet at www.nre.vic.gov.au or call the NRE Customer Service Centre on 136 186.

ISBN 1 74106 161 X

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HEALTHY RIVERS HEALTHY COMMUNITIES & REGIONAL GROWTH

VICTORIAN RIVER HEALTH STRATEGY

Department of Natural Resources and Environment August 2002 > FOREWORD

Rivers are a vital part of Victoria’s natural infrastructure. They are fundamental to our regional economies and quality of life. Our rivers support high value, efficient agricultural industries, provide safe drinking water, and are often a major drawcard for recreation and regional tourism. In addition, they are highly significant ecosystems in their own right. For many in the community, rivers have a special place in their memories and are deeply associated with their ‘sense of place’ and ‘belonging’. This is particularly true for Indigenous Victorians. But our rivers are degrading. Currently, only 22% of major rivers and streams are in good or excellent condition. As they degrade, we are losing a significant part of our natural infrastructure and risking all the benefits they bring. We need a significant commitment in river protection and restoration to restore the health of our rivers and safeguard the regional economies that are dependent on them. The Victorian River Health Strategy will provide the framework for communities to work in partnership with Government to manage and restore our rivers over the long term. It sets the scene for integrating all our efforts on rivers, managing them within an integrated catchment management context and ensuring that we get the most effective river health benefits for the effort and resources invested. The Victorian Government is strongly committed to this task and this is shown by our list of achievements in this area. We recently passed the Farm Dams legislation which will result in a more secure supply of water for the environment and other users. We invest over $21.5 million in river and floodplain management each year and have recently added another $10.6 million over the next three years to assist in the improvement of stressed rivers. This is in addition to $244 million to restore the , $77 million to pipeline the Wimmera-Mallee stock and domestic system to provide improved environmental flows in the Wimmera and Glenelg Rivers, $15 million in improving the health of the River Murray and over $150 million per annum in general catchment management activities. However, we recognise that to achieve the vision and objectives of the Victorian River Health Strategy will require a major effort from the community in partnership with Government over the long term. The success of our efforts will be measured by our children and grandchildren and they will be looking for the same pleasures and associations that our grandparents had. Our success will be measured in terms of the sounds of frogs, the ability to swim in waterholes shaded by river red gums, the chance of catching a cod, watching sun-dappled ripples in the water and listening to the rush of the river. I would encourage all Victorians to recognise the importance of healthy rivers for our future and to get involved in river restoration programs in their region. The Victorian River Health Strategy is the blueprint for the future management of our rivers.

Sherryl Garbutt Minister for Environment and Conservation

Victorian River Health Strategy 1 > CONTENTS

Foreword 1 1. Introduction 7 1.1 Purpose of the Victorian River Health Strategy 11 1.2 Policy Context for the VRHS 11 1.3 Structure of the VRHS 13

Section 1 - Strategy Background 14 2. Understanding River Health 15 2.1 How Rivers Work 15 2.2 Key Aspects of River Health 17 2.3 The Management Drivers of River Health 18 2.4 Incorporating River Ecology into the Management Framework 18 2.4.1 Ecological Healthy Rivers 21 2.4.2 Areas of High Value 23 3. Current River Condition and Future Outlook 25 3.1 Current Environmental Condition of Victorian Rivers 25 3.2 Future Outlook 28 3.3 Conclusion 31

Section 2 - A Vision for Victoria’s Rivers 32 4. A Vision for Victoria’s Rivers 33 4.1 The Vision 33 4.2 Implementing the Vision 34 4.2.1 The Broad Approach 34 4.2.2 Protection and Restoration 35 4.2.3 Priority Setting and the Concept of ‘Overall Improvement’ 35 4.2.4 Aiming for ‘Ecological Health’ 35 4.3 Statewide Targets 36 4.4 Principles for Implementing the Vision 37

Section 3 - The Integrated Management Framework 39 5. The Integrated Management Framework 40 5.1 Protection for Rivers and Streams of High Community Value 40 5.1.1 Special Protection for Rivers and River Systems of Very High Community Value 40 5.1.2 Other Rivers of High Value 41 5.2 Establishing Regional Targets for River Protection and Restoration – the Regional Planning Process 44 5.2.1 Current Planning Arrangements for the Management of River Health 44 5.2.2 Future Planning Arrangements 48 5.2.3 Transition 54 5.2.4 Review Process 54 5.2.5 Community–Government Partnership 54

2 Victorian River Health Strategy Section 4 - Specific Management Issues 55 6. Environmental Flows and Water Allocation 56 6.1 Introduction 56 6.2 The Victorian Water Allocation Framework 60 6.2.1 Bulk Entitlements in Regulated Rivers 61 6.2.2 Unregulated Systems 62 6.2.3 Groundwater Management 64 6.2.4 Stressed Rivers 65 6.2.5 The Water Market 65 6.2.6 Sustainable Catchment Limits 65 6.2.7 Targets for the Implementation of the Victorian Water Allocation Framework 66 6.3 River Health Issues Associated with Water Allocation 66 6.3.1 Defining an Environmental Flow 66 6.3.2 Providing and Managing Water for the Environment 67 6.3.3 Restoring Flow-Stressed River Systems 69 6.3.4 Protecting Rivers Whilst Enabling New Development 72 6.3.5 Protecting River Health by Integration within the Water Resource Management Framework 76 6.3.6 Protecting Rivers against Uncertainty 77 6.3.7 Roles of Water Authorities 77 7. Management of Water Quality 79 7.1 Importance of Water Quality 79 7.2 Management Issues 81 7.3 Framework for the Management of Water Quality 82 7.3.1 State Policy Context 82 7.3.2 Regional Arrangements for the Management of Water Quality 83 7.3.3 Establishment of Acceptable Standards 87 7.3.4 Understanding Current and Emerging Water Quality Issues 88 8. Management of Riparian Land 90 8.1 Importance of Riparian Land 90 8.2 Management Issues 91 8.3 Management Framework for Riparian Land 92 8.3.1 Goals, Objectives and Priorities for Riparian Management 92 8.3.2 Partnership Approach on Riparian Land Management 94 8.3.3 Caretaker of Riparian Land 94 8.3.4 Mechanisms for the Protection and Restoration of Riparian Land 95 8.3.5 Increasing Community Awareness 98 8.4 Floodplain Linkages 99

Victorian River Health Strategy 3 > CONTENTS

9. Management of the River Channel 100 9.1 Importance of the River Channel 100 9.2 Management Issues 101 9.3 Management of the River Channel 101 9.3.1 Priorities for Protection and Restoration 101 9.3.2 Protection of Assets 102 9.3.3 Restoration Activities 102 9.3.4 Quality of Restoration/Protection Work to be Undertaken 105 9.3.5 Protection of the Channel against Degradation from Other Activities 106 9.3.6 Management of Fish Resources 109 10. Linked Ecosystems 110

Section 5 - Management Arrangements 112 11. Management Arrangements 113 11.1 Institutional Arrangements 115 11.1.1 Statewide Arrangements 115 11.1.2 Regional Arrangements 116 11.1.3 Arrangements within the and Westernport CALP Region 118 11.1.4 Interstate Arrangements 119 11.2 Effective Partnerships 119 11.2.1 Regional Communities 119 11.2.2 Local Government 120 11.2.3 Regional Resource Managers 121 11.3 Funding for River Management and Restoration 121 11.3.1 Commonwealth Funding 121 11.3.2 State Funding 122 11.3.3 Regional Resources 124 11.3.4 Cost-sharing for River Protection and Restoration 125 11.4 Accountability 125 12. Community Engagement and Participation 126 12.1 Community Engagement and Participation 127 12.2 Capacity Building within the Waterway Management Industry 129 13. Adaptive Management 131 13.1 Monitoring River Health 133 13.1.1 Assessment of Integrated River Health 133 13.1.2 Monitoring of Streamflows and Water Quality 134 13.1.3 Biological Monitoring 135 13.1.4 Instream and Riparian Condition 135 13.1.5 Data Accessibility 136

4 Victorian River Health Strategy 13.1.6 Role of Community Monitoring 136 13.1.7 Oversight of Monitoring of River Health 136 13.2 Research 137 13.3 Review 139

Appendices 140 1. The Index of Stream Condition 141 2. Victoria’s Heritage Rivers, Natural Catchment Areas and Ramsar Wetlands 143 3. Lead Responsibilities for Specific Functions related to the Regional Management of River Health 146

Glossary 151

References 152

Acronyms 154

Figures 2.1 Ecological functioning in a typical Victorian river 16 2.2 Conceptual example of different ecological states which could arise when certain thresholds are passed 21 2.3 Preliminary classification of river regions for Victoria 24 3.1 Current condition of rivers in Victoria 25 3.2 Assessment of water quality issues in Victoria 26 3.3 Current condition of estuaries in Victoria 27 3.4 Potential for increased water-based economic activity 29 5.1 Proposed regional management framework 50 6.1 Typical daily flow series 56 13.1 An adaptive management framework for river health 132

Victorian River Health Strategy 5 > CONTENTS

Tables 2.1 Major river and land management activities that affect river health 19 3.1 Predicted river salinity in selected river systems in Victoria, current to 2100 30 5.1 Interim river regions and suggested representative rivers 43 5.2 Major objectives of existing regional river-related RCS action plans and related planning processes which have implications for river health 45 6.1 Ecological significance of the major components of a typical river flow regime 57 6.2 Potential ecological effects of changed flow regimes due to water resource management operations 58 6.3 Management of unregulated rivers in Victoria 63 7.1 Examples of likely ecological impacts of poor water quality 79 7.2 Summary of regional plans and programs in Victoria which have implications for water quality 83 10.1 Management arrangements for linked ecosystems 111 13.1 Immediate priorities for research identified in the development of the Victorian River Health Strategy 138

Boxes 1.1 Indicative Economic Values and Costs of Healthy Rivers 9 2.1 Important Criteria for Determining Ecological Value 23 5.1 Indicative Asset Register to be developed in the Regional River Health Strategy 52 5.2 Indicative Set of Target Areas to be included in the Regional River Health Strategies and Related Action Plans 53 6.1 The Importance of River Hydrology for River Ecology 56 6.2 Current Arrangements for the Management of Existing BEs for the Environment 69 8.1 Principles for Best Practice Riparian Restoration 96 9.1 Criteria for Establishing Priorities for Fish Passage across Victoria 103 11.1 General Roles of Major Groups in River Restoration and Catchment Management 113 11.2 Criteria for the Allocation of Healthy Waterways Program Funds 123 11.3 Cost-Sharing Principles for Natural Resource Management Programs 124

6 Victorian River Health Strategy INTRODUCTION Introduction

Victorian River Health Strategy 7 1. Introduction Rivers make up only a small portion of the Victorian landscape and yet their overall significance for the economy, the ecology and the social fabric of Victoria is immense. In an economic sense, our society is dependent on rivers as a key component of our natural infrastructure. Rivers provide safe drinking water for four million people, and water to support our rural production including $5.2 billion of irrigated agricultural and aquacultural production. They are a key input to our manufacturing industries. However, this statement of the community’s economic reliance on rivers does not acknowledge their social value. In the past, nearly every town in Victoria was situated on or near a river to provide a source of water and transport.

Introduction Consequently, the rivers have become entwined in the lives and histories of people. Rivers have been the focus for recreation, and have provided community meeting places and an attraction for people outside their region. Communities have fought their rivers during floods and anxiously watched them in droughts. People have grown up beside their rivers, linking their personal growth with the annual or seasonal changes in the river. As a result of this, for many in the community, rivers have a special place in their memories and are deeply associated with their ‘sense of place’ and ‘belonging’. This is particularly true for Indigenous Victorians. Rivers are also important to Victorians at play. They provide a pleasant environment for walking, picnicking, swimming, hiking, canoeing and rafting. In particular, they are the focus for some 110 000 fisherfolk who contribute at least $400 million to the State economy. Moreover, rivers and estuarine environments are becoming more and more the hub for regional tourism as the interest in nature-based and adventure tourism increases. Areas such as the Lakes, the and the contribute greatly to their regional economies. Finally, rivers and their associated floodplains and estuaries are diverse and complex ecosystems in their own right. They support a large array of native flora and fauna (many of which are threatened or endangered), are highly important in the movement and cycling of sediment and nutrients through the landscape, and are a significant interface between aquatic and terrestrial systems. Whilst these environmental values have long been well known and appreciated, we are only now becoming aware of a range of ecosystem services that functioning riverine ecosystems can provide to human communities, such as purification of water by natural catchments. As we start to fully appreciate the level of service provided by riverine ecosystems in these areas, it will be possible to put an economic value on them. Virtually all of these values that rivers provide to our community, whether they are economic, social or environmental, are reliant to some extent on river condition. Some values, such as maintenance of ecological communities, tourism, supply of clean drinking water or recreational fishing, require rivers to be in good condition. Others, such as irrigation or power boating, have less stringent requirements. While some uses of rivers have little impact, some, by their nature, change the characteristics of rivers themselves. Activities such as water extraction, grazing or cropping on the river bank, desnagging, and the disposal of wastewater all degrade various aspects of river condition. As the condition of the natural infrastructure underpinning our regional economies declines, various values or services can no longer be provided. Those with the requirements for highest quality water, such as clean drinking water, are lost first, those with less stringent requirements, however, are also gradually affected. Even irrigation water can be unusable if the quality is too poor.

8 Victorian River Health Strategy As river condition deteriorates there will be costs. Some of these will be economic costs. For example, poor land management can result in deterioration in water quality and hence high costs for water treatment. Poor water quality, in turn, can trigger algal blooms leading to costs associated with providing alternative water supplies, cessation of irrigation, closure of recreational lakes, and loss of recreational and tourism revenue. Accelerated erosion of riverbeds and banks may cause loss of valuable land and other assets like roads and bridges. Other costs will not be able to be measured in economic terms. Extraction of water, for example, may cause a reduction in the diversity and abundance of aquatic species or even local extinctions.

Box 1.1 Indicative Economic Values and Costs of Healthy Rivers

Many aspects of regional economies are premised on healthy rivers. Rivers in good environmental condition can provide economic benefits. For example: • The Shepparton Irrigation Region has a clean food industry, which in 1998 generated around $765 million of export income. • It has been estimated that healthy waterways generate $10-20 million per year in the Upper Goulburn region in terms of tourism and recreation. •A minimum of $400 million is spent annually on freshwater recreational fishing. • Victoria’s rivers support an aquaculture industry worth $12 million, producing 80% of ’s trout production and employing approximately 200 people. • In 1990, the value of river-based recreation for the Ovens and King catchments was estimated at $1.1 million per year. •A comparison of water treatment costs between Ballarat and Bendigo in 1998 showed that the cost of water treatment is lower where water quality is better. In Ballarat, which has good quality water, water treatment costs were approximately $9 million less in capital works, and operating costs were around $700 000 per year lower than in Bendigo, which has poorer quality water.

But a decline in river health can have significant costs for the regional economy. For example: • Recent estimates of the costs of algal blooms show that: - the total impacts of algal blooms and poor water quality in the Corangamite region are estimated to range between $6 million and $9 million per year; - a bloom in Lake Boga in 1995 cost $1.7 million to the regional economy in lost tourism and recreation; and - an algal bloom in Kow Swamp lasting one month would cost $4.4 million in lost agricultural production. • River erosion can result in the loss of valuable land and public assets, such as bridges and roads, particularly during floods. The estimated cost of repairs of river-related damage from the 1998 floods was in the order of $30 million.

The interdependence between river condition and human use means that the management of our rivers is not an easy task. It requires striking a delicate balance between using our rivers and maintaining their environmental condition. This requires the community to fully understand the potential impacts of management actions on river condition and to make transparent decisions about what purposes they want their rivers to serve, what consequent environmental condition they are prepared to accept and what the implications of that level of environmental condition are for other uses.

Victorian River Health Strategy 9 One of the basic tenets that must be understood is that, whilst it may be possible to minimise the impact of some river uses, there will still be an ultimate trade-off between that use and the environmental condition of the river. In making these decisions about the future of our rivers, the community must balance environmental, social and economic needs in a responsible and open way, maintaining future options wherever possible. Past decisions on water resource and river management did not reflect this balanced approach to decision-making. Communities often didn’t value the environmental or recreational benefits provided by rivers until they were under threat. In addition, the knowledge on which decisions were based was often lacking, particularly of the linkages between land and water management in the catchment and river condition and the underlying geomorphic processes. The current condition of Victorian rivers shows this legacy. Only 22% of Victoria’s major rivers and tributaries are in Introduction good or excellent condition. Thirty-four percent are in poor or very poor condition and 44% are moderately impacted. We have lost aquatic species and communities in many areas. In others, poor water quality is already having considerable impact on regional economic productivity. New tourism and recreation industries and new export markets based on accredited green production are at risk from degrading river condition. In the past twenty years, communities have become increasingly aware of the problems. Community values have changed and there is now a general appreciation of all the values that rivers provide. Our knowledge of catchments and river systems has also improved. In this period, there has been a major turnaround in the management of catchments and rivers. There has been a significant investment by governments and communities in integrated catchment management at the regional level. Currently, the Victorian Government is investing $21.5 million per year in managing rivers and floodplains, and in excess of $150 million per year in general catchment management activities. Our regional communities have decision-making structures in place that are capable of tackling hard decisions and we are starting to see the benefits of this in a number of areas. Whilst this is an excellent base from which to start a difficult task, there are still a number of problems with the current arrangements for managing our rivers. These problems include that: • there are no clear principles guiding communities in their decisions on river protection and restoration; • there are no clear, shared objectives for rivers and river reaches; • there are no clear criteria for setting priorities for river protection and restoration; and • there is no clear policy direction on some specific activities impacting on river health, such as environmental flows. As a result: • the current management effort may be fragmented; • the management of all activities affecting rivers is not well integrated; • the multiple benefits of river restoration activities are not well recognised; • long term regional priorities are not clearly identified; • there is no common understanding of which areas should be protected and which should be restored; • outcomes of investment into river protection and restoration may be not maximised; • there may be perceived uncertainty for water users which can affect potential investment in regions; • inappropriate development may be occurring in some areas; and • the needs of downstream ecosystems such as estuaries and terminal lakes are not fully integrated into decision-making.

10 Victorian River Health Strategy The challenge is to improve the current pattern of river condition to one which will provide for the needs and aspirations of all Victorians now and in the future, whilst promoting sustainable regional development. This requires a management framework for the State that will ensure that responsible community decisions are made about how we use and manage our rivers. The need for this management framework is urgent. Victoria’s rivers are still degrading. Some are adapting to changes made years ago. Others are being affected by current activities. The pressures for those activities which could potentially cause further damage are increasing. Demand for water is growing with increased urban growth and increased export markets for irrigated agricultural produce. The prosperity of regional Victoria depends to a large extent on agricultural production – long-term production targets of $12 billion of food and fibre exports by 2010 have been set. The key is to set the achievement of these targets within a context of ecologically sustainable water resource management.

1.1 PURPOSE OF THE VICTORIAN RIVER HEALTH STRATEGY The Victorian River Health Strategy (VRHS) provides the framework in which the Government in partnership with the community will make these decisions on the management and restoration of Victoria’s rivers. It provides: • a common vision for the management of rivers in Victoria; • statewide targets for river restoration; • a planning framework which: - is based on community decision-making within an integrated catchment management (ICM) context, - balances environmental, economic and social needs, - integrates the management of all activities impacting on rivers, and - is based on the best available scientific understanding of river functioning and is responsive to new knowledge; • criteria for priority setting for investment in river protection and restoration; • an overview of government policy relating to the management of activities affecting river health, including environmental flows and water allocation; and • the institutional arrangements for the management of river health in Victoria.

The objective for the Victorian River Health Strategy is to achieve: healthy rivers, streams and floodplains which meet the environmental, economic, recreational and cultural needs of current and future generations.

1.2 POLICY CONTEXT FOR THE VRHS The Victorian Government is committed to the concept of Ecologically Sustainable Development (ESD). The aim is to build the principles of ESD into the process of decision-making across the whole of Government. This means:

using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased (Commonwealth of Australia 1992).

Victorian River Health Strategy 11 In addition, Victoria is a signatory to the 1994 Agreement on Water Reform by the Council of Australian Governments (COAG). The agreement requires considerable reform of the institutional arrangements, pricing mechanisms and policies for the management of water resources. This reform is based on the principles of ESD and requires Governments to provide environmental flows, manage water quality and improve the health of stressed rivers. Other relevant Commonwealth initiatives to which Victoria has committed include the National Action Plan for Salinity and Water Quality and the Murray-Darling Basin (MDB) Integrated Catchment Management Policy. Both of these initiatives aim to achieve healthy rivers, ecosystems and catchments. The VRHS provides the mechanism for implementing ESD as it relates to use and protection of our waterways and meeting COAG commitments. It fits into the broader government vision for the management of water in the State which

Introduction is outlined in the recent report The State of Water. The VRHS will ensure that rivers are managed in accordance with other relevant Victorian Government policies. These include the Victorian catchment management arrangements including the Regional Catchment Strategies, the State Environment Protection Policy (SEPP) (Waters of Victoria), the Victorian Biodiversity Strategy, the Victorian Nutrient Management Strategy, Victoria’s Salinity Management Framework and the Victorian Coastal Strategy. Implementation of the VRHS within this broader policy context will ensure that our waterways will be sustainable – that they will continue to support the species, communities and ecological processes that are needed to ensure the survival of healthy rivers into the future.

Scope of the Victorian River Health Strategy The VRHS focuses on the management and ecological condition of rivers and streams. Throughout the VRHS, the definition of a ‘river’ to be used is one which reflects its functioning as an ecosystem: A river, stream or natural waterway includes: •the channel; • the riparian zone, which includes the area of land that adjoins, regularly influences, or is influenced by, the river, including the regularly wetted floodplain and any associated floodplain wetlands; and • the estuary or terminal lake. The VRHS covers activities in the catchment when they impact on the environmental condition of the river including the estuary and/or terminal lake. Whilst the focus of the VRHS is on systems which include major rivers and streams and their terminal lakes/estuaries, it also applies to those systems where the major natural feature is a terminal lake fed by intermittent streams. The VRHS covers those aspects of the management of estuaries, floodplains and terminal lakes which are impacted by management of the river/streams and catchment and which affect the health of the whole system. It does not deal with all issues affecting these systems. Specific issues relating to the management of wetlands and estuaries, such as coastal development, land management of individual wetlands or recreational use, are dealt with in other related strategies such as the Victorian Coastal Strategy, the Victorian Biodiversity Strategy, Coastal Action Plans and individual management plans.

12 Victorian River Health Strategy 1.3 STRUCTURE OF THE VRHS The VRHS describes the total picture for the management of rivers in Victoria. Throughout the VRHS, statements of policy principle are made which are either a change to or a clarification of what is occurring now. These are indicated in blue text and are boxed. Other actions that are activities required to ensure that the policy principles can be implemented, are indicated, together with the responsible agency, in black text and are boxed. The VRHS is divided into five major sections.

Section 1 - Strategy Background Provides the background and justification for the approach outlined in the VRHS. It gives a short overview of our current knowledge of river ecology, the impacts of various management actions, and describes some key concepts that are used within the VRHS. It also describes the current condition of rivers, and outlines some of the obvious issues that are likely to occur in the future and that therefore need to be addressed by the management framework.

Section 2 - A Vision for Victoria’s Rivers Outlines the vision for the management of rivers in Victoria, the broad conceptual basis for management and the statewide targets for river restoration.

Section 3 - The Integrated Management Framework Describes the planning framework for the integrated management of rivers in Victoria.

Section 4 - Specific Management Issues Outlines policy on the management of specific major issues affecting rivers. These include water allocation and the management of water quality, riparian land, and the river channel. In this section, the emphasis is on how the environment needs to be dealt with in community decision-making processes. In the past, economic and to a lesser extent social considerations have been the major focus of these decisions, and the ecological needs and requirements have not been well understood or incorporated into these decision-making processes.

Section 5 - Management Arrangements Details the institutional arrangements for the management of rivers and covers issues such as capacity building, monitoring and accountability.

Victorian River Health Strategy 13 1 STRATEGY BACKGROUND

This section provides the background for the approach outlined in the VRHS. It gives a short overview of our current knowledge of river ecology, and describes: • some key concepts that are used within the VRHS; • the current condition of rivers; and SECTION 1 • some future issues. Strategy Background

14 Victorian River Health Strategy 2. Understanding River Health The framework for the management of rivers in Victoria will assist communities to balance economic, social and environmental imperatives. However, both the framework and these community-based decisions need to be based on a good understanding of how rivers work and what is important ecologically. Whilst our knowledge of rivers and how they function is incomplete, some consolidation of important concepts for management has occurred within the last ten years.

2.1 HOW RIVERS WORK Rivers are one of the major forces shaping the landscape. Rivers are dynamic systems which have evolved over a very long time in response to Australia’s extremely variable climate. They continue to be shaped by a series of events occurring at different spatial and time scales. There are two major factors influencing rivers and streams: • Flow – the flow pattern will affect the physical form and the ecology of a waterway and is very much driven by climate. Flow variability is a key determinant of river shape and functioning and of the biota which live in rivers. • Catchment – the slope, geology, soil, vegetation and land use will all have some effect on river condition, either through influencing streamflows, water quality, channel features, energy supply or riparian and floodplain vegetation. A river links with its catchment in three different dimensions: • the longitudinal dimension. Water, sediments, nutrients, chemicals and biota are moved from the higher areas within the catchment downstream to the sea or a terminal lake. Along its length, the river changes from a small, rocky-based, shaded stream in the upland zone to a wider river in the valley zone to a broad, turbid river in the lowland floodplain zone. While most movement is downstream, many fish move upstream at some stage in their life cycle. • the lateral dimension. Lateral linkages occur between the river and riparian and floodplain land. In the upland zone of the river, lateral linkages are weakest and tend to be one-way, with the riparian zone providing organic matter (e.g. leaf litter) to the river. Organic matter is a major energy source for the instream biota. In the lowland zone of the river, lateral linkages are more important and come into operation as rivers overtop their banks and inundate the floodplain on a regular basis. Flooding is the key to maintaining the health of both the river and the floodplain. Transfer of sediments, nutrients and organic material between the river and the floodplain is vital to the maintenance of both ecosystems. A flood stimulates a boom in floodplain productivity with the regeneration of floodplain and riparian plants, and the breeding of invertebrates and vertebrates such as waterbirds, frogs and tortoises. It opens the floodplain as new habitat for fish and macroinvertebrates and is often the cue for breeding for these species. As the flood recedes, it transfers organic matter back to the river, replenishing instream energy sources and ensuring recruitment in fish populations and macro-invertebrate communities. • the vertical dimension. A river links vertically with groundwater systems. Groundwater is an important though little understood feature of waterways. The base flow in rivers is maintained by groundwater, and rivers can also recharge shallow groundwater aquifers. Groundwater provides organic carbon (an energy source) to the streams, and during high flows the streambed can provide a refuge for invertebrates as they move down below the stream surface to take shelter. Recognition of the importance of these linkages in river functioning is a key part of the ecological definition of a river. Thus, the definition of a river or waterway encompasses the channel, the riparian zone which includes the regularly wetted floodplain and any associated floodplain wetlands, and the estuary or terminal lake. These systems may include both intermittent and/or perennial features.

Victorian River Health Strategy 15 Figure 2.1 shows the nature of the linkages, the type of habitats and biota, and the dominant ecological processes for the three major river zones (i.e. upland, valley and lowland) and the terminal system. 1 Figure 2.1 Ecological functioning in a typical Victorian river

UPLAND

Characteristics Typical biota

-Cool, clear high oxygen water - Small fish e.g. Galaxiids - Rocky stream bed -Diverse invertebrate fauna e.g. stoneflies, -Riffles mayfly, beetles SECTION 1 -Shallow water -Ferns and mosses -Chain of ponds -Shady -Leaf packs and twigs Strategy Background

VALLEY

Characteristics Typical biota

-Wood debris dams -Caddisflies, mayflies, damselflies - Rocky beds - Fish including Grayling, Blackfish, -Pools and runs Gudgeons, Maquarie Perch, Eels, -Overhanging vegetation Lampreys, Galaxiids -Undercut banks -Frogs - Chain of ponds -Platypus -Riparian vegetation often includes River Bottlebrush, Blackwoods, Kanooka

LOWLAND FLOODPLAIN

Characteristics Typical biota

-Large woody debris -Fish including Murray Cod, Catfish, -Deep river channel Silver Perch, Pygmy Perch, Gudgeons, -Sand or mud bed Grayling, Tupong -Low oxygen -Crayfish and yabbies -Warm, turbid water -Dragonflies, caddisflies, true bugs, mussels -Wide tree covered floodplain -Floodplain birds, e.g. Ibis, Herons, Egrets -Anabranches, billabongs, -Frogs terminal lakes, chain of ponds -Tortoises -River redgums, Lignum - Phragmites, Typha, Triglochin

ESTUARINE

Characteristics Typical biota

-Tidal variation - Fish including Mullet, Whiting, Eels, -Salinity gradient Galaxiids -Anoxic sediments -Polychaete worms, shrimps, molluscs -Macrophyte beds -Phragmites - Open water -Seagrass

KEY strong link moderate link

Longitude Longitude

Lateral Lateral

Vertical Vertical

16 Victorian River Health Strategy 2.2 KEY ASPECTS OF RIVER HEALTH River health is a term used to describe the ecological condition of a river. Health is more than just the flora and fauna that live in a river or the quality of the water. To understand properly how healthy a river is, three aspects of the river system should be considered: • the diversity of the habitats and biota; • the effectiveness of linkages; and • the maintenance of ecological processes.

Maintaining the diversity of habitats and biota Rivers and streams support an enormous diversity of life. This is to a large extent because they provide a great range of habitats and are the interface between aquatic and terrestrial ecosystems. At the macro-scale, river habitats include the river channels, the riparian vegetation, the floodplains and the terminal systems such as estuaries and lakes. Each of these macro-habitats includes a complex array of habitats with different physical conditions, and their own suite of biota and sets of ecological interactions. For example: • river channels have pools, riffles, debris dams, rocks, woody debris, river banks and benches; • floodplains may have billabongs, intermittent lakes, swamps, chains-of-ponds, debris piles and channel systems; and • riparian vegetation includes reeds, grasses, shrubs and trees. Maintenance of this diverse range of habitats and their biota is a key component to maintaining the ecological health of a river. This in turn depends on maintaining geomorphological processes, which are heavily influenced by climate, hydrology and the catchment.

Maintaining linkages Maintaining linkages is essentially about making sure that a river is part of the total landscape, that it is not just regarded as a channel running though the land. Maintaining each of the linkages outlined above is essential to maintaining the ecological health of the river. Disruption of any of these linkages will have some effect on streamflow, water chemistry, and the maintenance of habitats and ecological processes, and therefore on the quality and the health of species and communities.

Maintaining ecological processes To maintain river health, in particular to maintain biodiversity, it is essential to maintain the ecological processes operating within the system. They can be grouped into three types: • energy and nutrient dynamics, including primary production and microbial respiration, which maintain food webs within the entire ecosystem. • processes which maintain animal and plant populations, such as reproduction or regeneration, dispersal, migration, immigration and emigration. Some species have quite specific requirements to initiate these processes. For example, some fish need specific flows before they will migrate and/or breed, colonial waterbirds need particular flood durations and temperatures before breeding, and many plant seeds require flooding prior to germination. • species interactions, which can affect community structure. These include predator-prey, host-parasite and competition relationships. Changes to physical conditions (e.g. flow), to energy sources (e.g. removing riparian vegetation) or species composition (e.g. spread of an exotic species such as carp) can affect species interactions by favouring some species over others.

Victorian River Health Strategy 17 2.3 THE MANAGEMENT DRIVERS OF RIVER HEALTH As can be seen from this simple discussion of the key aspects of river health, river ecology is complex. The key 1 components of river health can be affected in different ways by changes in the flow, land use in the catchment, and direct management in the channel. These types of management activities can be regarded as the drivers of river health. It is important to understand the likely ecological impact of any of these management drivers so that it can be at least recognised by the community in their decision-making. The impact may then be minimised where possible or rehabilitation undertaken where necessary. Table 2.1 outlines the major management activities that occur within rivers and their catchments, and the likely impacts

SECTION 1 on the key components of river health. The degree of impact will be dependant on the type, magnitude and extent of the management activity, the combination of other management activities and also how those activities are implemented. There are ways to minimise consequential environmental impacts by good management practices. In some cases, there can be a considerable lag time between the management activity and the observed environmental impact. Strategy Background The poor condition of many Victorian rivers and streams is, to a large extent, the accumulated result of many of these management activities being undertaken over time within the catchment or the river itself. The actual relationship between the various management drivers and river health is not fully understood. However, it is likely to be a step function with key ecological thresholds that when passed result in significant losses of some aspects of river health (see Figure 2.2). For example, a threshold may be passed with the construction of a levee bank or the harvesting of floods that prevents inundation of the floodplain. Another may be passed with the construction of an on-stream dam which results in changes to the water regime and loss of longitudinal continuity. There are a number of implications of this step function that are extremely important in making decisions that affect river health. These are: • There may be a number of viable, functioning ecological states for a river which are self-sustaining. A number of these states will have a loss of some aspect of biodiversity or river functioning from the natural system but will be able to be maintained in that state. The aim of management may be to prevent transition from one state to a less desirable one rather than to restore the system to its original condition. • Rivers in good environmental condition have a high resilience to change and their capacity to recover is high. As the level of impact increases and more ecological thresholds are passed, the resilience of the system to cope with change decreases. The capacity to recover is much lower in a system that is very degraded than in a system that has a low degree of impact. This means the effort needed to restore a badly degraded system will be very much larger than that required to restore a system in reasonable condition. Some changes may, in fact, be irreversible. • All systems have some ecological values. Even in very degraded rivers, there are always some functioning aspects of the ecology present and some ecological values - even an irrigation channel may support yabbies and red gums.

2.4 INCORPORATING RIVER ECOLOGY INTO THE MANAGEMENT FRAMEWORK The fact that our management activities can impact on river health emphasises the need for communities to make decisions on river uses openly and transparently, balancing the economic, environmental and social requirements in a way that best meets their current and future needs, and in this process utilising the available knowledge of the ecology of the system.

18 Victorian River Health Strategy Table 2.1 Major river and land management activities that affect river health

Activities Some Key Impacts

Catchment management

Catchment clearing • Changed stream flows - peakier, less base flow; can increase instream erosion including urbanisation and sedimentation • Increased catchment erosion hence sedimentation of streambed, smothering biota •Poor quality runoff causing deterioration in instream habitat • Increased salinity levels • Loss of wetland habitat Poor land management • Increased input of contaminants such as sediment, salt or nutrients, depending on the land use • Rabbit infestation which can damage riparian vegetation, increase erosion and hence increase sediment input • Loss of wetland habitat Disposal of poor quality • Reduced habitat quality from poor water quality effluents • Changed species composition •Algal blooms

Management of riparian land

Grazing banks • Changed vegetation structure and species composition, especially understorey • Reduced regeneration •Weed invasion • Bank instability hence erosion and sediment deposition in waterways Clearing banks •Complete loss of vegetation structure and diversity, so loss of plant and animal species •Weed invasion • Reduced/no input of organic matter and snags to rivers • Reduced quality of bank habitat for aquatic animals • Bank erosion and sedimentation leading to changed channel shape Promotion of exotics •Doubtful to negligible habitat quality •Willows: changed channel morphology and hence habitat • Changed input of energy and snags • Decline in suitability of riparian habitat Levees and floodplain • Reduction or loss of linkages development • Decline in quality and area of floodplain habitat, reduction in quality of riverine environment • Changed river and floodplain morphology Recreation: camping • Loss of understorey, especially ground layer and wood debris, so impact on plants and also animals (lizards, invertebrates, insectivorous birds) • Reduced snag input to rivers

Victorian River Health Strategy 19 Activities Some Key Impacts

Management in the river channel

1 Snag removal • Loss of habitat and food source • Changed channel shape Culverts and regulators • Disrupted longitudinal and lateral linkages, reduced access to habitat On stream storages • Disrupted and degraded longitudinal linkages, reduced fish movement, sediment and organic matter transport, recolonisation •Changed flow patterns changing occurrence of ecological triggers SECTION 1 Low level releases on • Disruption of life cycles from reduced temperature – reduction/prevention of storages breeding, hatching, growth, germination • Reduced primary productivity Recreation (e.g. • Removal of ‘unsafe’ snags Strategy Background boating, fossicking) • Bank erosion, sedimentation Weed removal • Loss of plant species, loss of animal habitat • Release of sediment Flow diversion and •Disruption of longitudinal and lateral linkages including changed frequency of management estuarine closure (note: this is described • Changed channel shape more fully in Table 6.2) • Loss of habitats and species • Changes in flow patterns, leading to loss of biological cues, reduced linkages, changes to habitat availability and changed geomorphic processes • Changed temperature and seasonality of flows

(Adapted from Thoms et al. 2000)

The major types of issues that communities are considering in making decisions on rivers are: • Which rivers should be maintained and protected, and at what cost? • Which rivers should be restored, to what level and at what cost? • Where can further development occur and how much? In establishing a management framework where these decisions are worked through by communities, two key questions emerge as crucial information inputs. These are: • When is a river ecologically healthy or in ecologically sustainable condition? • Are there areas of high value that require special consideration? These questions are becoming increasingly important as, through initiatives like the National Action Plan for Salinity and Water Quality and the MDB Integrated Catchment Management Policy, communities are being encouraged to achieve healthy rivers, and to set clear and relevant environmental targets for water resource management and river restoration in their regional planning processes. The following sections discuss these questions and provide definitions of the terms ‘ecologically healthy’ and ‘ecologically sustainable’ as they are used in the VRHS.

20 Victorian River Health Strategy 2.4.1 Ecologically Healthy Rivers Figure 2.2 shows that theoretically, whilst within the continuum of river health there are a number of possible sustainable states for a river depending on the level of impact, most of these states involve some considerable ecological loss – either loss of biodiversity or loss of river functioning. Therefore they would not be regarded as either ecologically healthy or ecologically sustainable.

Figure 2.2 Conceptual example of different ecological states which could arise when certain thresholds are passed

Healthy

e.g. Construction of levee banks on floodplains - Loss of access by riverine species to floodplain habitat for breeding - Billabongs dry out - Floodplain habitat becomes unsuitable for floodplain biota (birds, plants, frogs)

e.g. Construction of a large upper catchment dam - Migratory fish can't move upstream or downstream - Water temperature drops downstream - Removal of small to medium sized floods so floodplains and their biota decline in health

Ecological Health - Reversed flow seasonality

e.g. Urban development - High concentration of nutrients - Flow levels instream change very rapidly - High instream erosion

ecologically healthy Not Healthy

Low Impact Level of Impact High Impact

Victorian River Health Strategy 21 The concept of an ecologically healthy river is an important one. The term ‘ecologically healthy’ is defined below and is used throughout the VRHS. Within the context of the VRHS, the state of ‘ecological sustainability’ for rivers is defined 1 as rivers that are ecologically healthy. An ecologically healthy river is defined as a river which retains the major ecological features and functioning of a river prior to European settlement and which would be able to sustain these characteristics into the future. It is possible to identify a set of ecological characteristics of a river that is ecologically healthy.

Characteristics of an Ecologically Healthy River as used in the VRHS SECTION 1 An ecologically healthy river will have flow regimes, water quality and channel characteristics such that: • in the river and riparian zone, the majority of plant and animal species are native and the presence of exotic species is not a significant threat to the ecological integrity of the system;

Strategy Background • natural ecosystem processes are maintained; •major natural habitat features are represented and are maintained over time; • native riparian vegetation communities exist sustainably for the majority of the river’s length; • native fish and other fauna can move and migrate up and down the river; • linkages between river and floodplain and associated wetlands are able to maintain ecological processes; • natural linkages with the sea or terminal lakes are maintained; and • associated estuaries and terminal lake systems are productive ecosystems.

These characteristics are based on the key ecological aspects of rivers discussed in section 2.1. As can be seen by this definition, an ecologically healthy river need not be pristine. Within this definition, change from the natural state can occur - in some cases, considerable change. There may be exotic species present. In some areas along the river, the riparian zone may be significantly reduced. The capacity for fish to move up and down the river may be provided in some cases by fishways. Limited areas of the floodplain may be disconnected from the river. However, overall, the major natural features, biodiversity and functions of a river are still present and will continue into the future. Therefore an ecologically healthy river is one where some aspects of river condition may have been traded off to provide for human use. Essentially, it is a river where a balance may have been struck between human use and the ecology of the river - a balance where the integrity of the system is still preserved, a reasonable level of human needs can be met, and where both can be sustained into the future. In Victoria, rivers showing the characteristics outlined in the box above will be considered to be in an ecologically sustainable condition as they meet the accepted definition of ESD outlined in section 1.2. Appendix 1 provides some guidance on how rivers in this condition can be identified in a conservative way, using the current information bases. It should be noted that the SEPP (Waters of Victoria) provides direction on specific environmental quality objectives that, if met, would ensure that the water quality within the river reach would be adequate to meet the requirements of this definition. Environmental flow assessments discussed in Chapter 6, if provided, are designed to provide the flow required to meet this definition.

22 Victorian River Health Strategy Over time, as new knowledge becomes available, it will be possible to develop ecological performance indicators which can be used to identify more accurately whether rivers do meet this definition of ecologically healthy. Once these performance indicators have been identified, communities will be able to use them in setting improved targets for river restoration and management, and for assessing whether targets have been achieved.

2.4.2 Areas of High Value Because most of our rivers have been modified since European settlement, it is important to acknowledge that from an ecological perspective, some rivers are now of higher ecological value than others. This will be important in determining criteria for setting priorities for protection and restoration. Attributes which are of importance from an ecological viewpoint are listed in Box 2.1. As well as ecological value, there are other values, such as social, cultural and recreational, which are of importance to the community. These values, along with ecological value, were the basis for the selection of Heritage Rivers by the Land Conservation Council (LCC) in its Rivers and Streams Special Investigation (LCC 1991). Hence these Heritage Rivers represent areas of high value to the community.

Box 2.1 Important Criteria for Determining Ecological Value

In making decisions on river protection, management and restoration, communities need to balance the economic, social and environmental values associated with rivers. Environmental values of river systems should be judged according to the following criteria: • Naturalness – how close the system is to a natural state. • Rarity – how rare are the features or functioning of the river. Could include: - rare and threatened species; - rare genetic strains of species; - unusual geological or geomorphological features, e.g. remnant chains of ponds; and - rare macrohabitats, e.g. floodplains in good working order. • Representative river types – rivers which are representative of the classes of rivers that were present at the time of European settlement. •Diversity – some systems are highly diverse in their natural state. • Importance for other systems – some systems are of considerable value because of their significance at the landscape scale. For example: - as a drought refuge for a number of species; - as wildlife corridors linking major vegetation areas; - as breeding areas (estuaries, floodplains); and •as source areas for stressed systems – provision of natural flow patterns, biota, or organic material which is important in sustaining a stressed river system, e.g. flows in the are critical to the Murray River and the Barmah-Millewa floodplains. Communities may add other values to this list, such as flagship species where the community has a special interest or concern in some species, e.g. platypus.

Victorian River Health Strategy 23 Representative rivers The concept of representative rivers is an important one. Because many of our rivers are in a degraded state, we may 1 not have good examples of all the river types that existed in Victoria prior to European settlement. This means we could be in danger of losing some of our ecological heritage. From a practical aspect, it also means that we have no benchmarks for those rivers in understanding how they function and their restoration potential. Rivers in good ecological condition that represent a particular river category are therefore of particular importance. The Rivers and Streams Special Investigation (LCC 1991) also recommended a number of representative rivers. The representative rivers selected as part of that study were based on a combination of geomorphic units and

SECTION 1 hydrological regions. However, since 1991, there has been a considerable increase in our understanding of river ecology and considerably more data on riverine and terrestrial biodiversity. As part of the background work for the VRHS, a new preliminary classification of rivers in Victoria was undertaken to determine the major types of rivers in the State based on river ecology (Doeg 2001). Rivers have been classified on the basis of their land type and

Strategy Background systems, fish and aquatic invertebrate communities, and terrestrial biodiversity - a much better reflection of river health. The results are shown in Figure 2.3.

Figure 2.3 Preliminary classification of river regions for Victoria

INSUFFICIENT DATA

3 6 8 2 4 7 5 9 1 14a 10 1 15 13 14b 16a 12 19 17 16b 11 18

1 Alps 12 South-west floodplains 2 North-east uplands 13 South-central 3 North-east floodplains 14a East Gippsland east of the Snowy River - uplands 4 North-central uplands 14b South-central uplands 5 North-central midlands 15 South-eastern slopes 6 North-central floodplains 16a East Gippsland east of the Snowy River - lowlands 7 North-west uplands 16b Strezleckis 8 North-west floodplains 17 South-eastern plains 9 Grampians 18 Wilsons Promontory 10 Glenelg catchment 19 South-central lowlands 11 Otway Ranges

24 Victorian River Health Strategy 3. Current River Condition and Future Outlook Before developing a management framework for rivers in Victoria, it is important to have some idea of the current ecological health of our rivers and their associated estuaries and floodplains as a baseline. It is also important to understand the likely pressures on these systems in the future.

3.1 CURRENT ENVIRONMENTAL CONDITION OF VICTORIAN RIVERS The environmental condition of Victorian rivers and streams was recently benchmarked using a new and innovative tool, the Index of Stream Condition (ISC). This combines information on the biota, flow regime, water quality and physical condition of the channel. More information on the ISC is given in Appendix 1. The benchmarking exercise assessed the environmental condition of 950 reaches representing 18 000 km of major rivers or tributaries in Victoria. The results for the State are summarised in Figure 3.1.

Figure 3.1 Current condition of rivers in Victoria

% stream length in excellent or good condition Streamside zone

>70% 31 - 50% <10% >60% 10 - 39% 0% 51 - 70% 11 - 30% not available 40 - 59% 1 - 9% not available

% Stream length in excellent or good condition % Stream length in excellent or good condition

Current Level of Physical Form Surface Water Development

>60% 10 - 39% 0% Low High Over developed 40 - 59% 1 - 9% not available Medium Fully developed Development potential limited by high salinity of the water resource % Stream length in excellent or good condition Vollume allocated

NB: Melbourne metropolitan area is not included in assessments.

(Current level of surface development map source: National Land and Water Resources Audit 2000) Victorian River Health Strategy 25 The benchmarking exercise shows that only 27% of major rivers or tributaries are overall in good or excellent condition. Thirty-four per cent are in poor or very poor condition. Some of these may not have stabilised and may be continuing 1 to deteriorate. This is due to a combination of factors including changed flow regimes, poor water quality, poor condition of riparian land, changes to the river channel and reduced habitat. The majority of catchments are considered to be fully allocated and within those catchments a number of river reaches are considered to be stressed due to inadequate flow regimes. Water quality issues are shown in Figure 3.2. At a statewide level, the average trends show a decline in pH, a slight increase in turbidity, a decrease in salinity and a slight decrease in total nitrogen. But the picture does vary across catchments. For example, salinity is clearly increasing in north-west and west Victoria, though is stable to the east and SECTION 1 even decreasing in the Port Phillip and Westernport and the Corangamite Catchment and Land Protection (CALP) regions. Nutrient trends are unclear, but the fairly low level of compliance with the Environment Protection Authority’s (EPA) nutrient guidelines for nitrogen, and to a lesser extent phosphorus, indicate that there is reason for concern. Strategy Background Figure 3.2 Assessment of water quality issues in Victoria

good water quality for all assessed variables undetermined issues (monitoring coverage less than 50% of basin) nutrients turbidity nutrients & turbidity nutrients, turbidity & salinity nutrients, turbidity, salinity & pH significant issues

(Source: National Land and Water Resources Audit 2001) Large areas of wetlands have been lost since European settlement: 35% of the original area has been totally lost by drainage and conversion to other land uses, and a further 30% of the area has been degraded by partial drainage or changes to flow regimes. The vast majority of the wetlands that have been lost were in rural landscapes, as are 70% of those that remain.

26 Victorian River Health Strategy Many species of plants and animals are wholly dependent on aquatic and riparian habitats or rely on them at some stage in their lives for breeding, feeding or roosting. The number of threatened species associated with waterways provides some measure of the stress placed on these systems. Over 420 plants and animals are listed as threatened under Victoria’s Flora and Fauna Guarantee Act 1988. Of these, 20% of the plant species and 35% of the animal species depend on aquatic or riparian ecosystems. For example, of Victoria’s 40 species of native freshwater fish, 19 are now considered threatened (including flagship species such as Murray cod) and at least one of these is extinct in Victoria. Over and above individual species listings, eight key threatening processes relating to the riverine environment have been identified under the Flora and Fauna Guarantee Act. In addition, the ‘Lowland Riverine Fish Community of the southern Murray-Darling Basin’ has also been listed as a threatened community. This geographic area is defined as the lowland reaches and associated floodplains of the Murray River and its tributaries (Victoria) draining the northern slopes of the . The spread of exotic species is an indication of the condition of our rivers. Exotic fish now live in all of our river basins. Some species are restricted to a single basin but most are widespread: goldfish occur in all basins, trout and redfin in all bar one, and carp, gambusia, tench, roach, weatherloach and salmon occur in 30-90%. In many regions along the River Murray, fish populations are now overwhelmingly dominated by introduced species, with carp making up over 90% of biomass at many sites. Weeds are a serious issue in riparian areas, with blackberries and willows in particular infesting many areas. While instream weeds are not currently a major issue across the State, introduced species (e.g. Saggitaria) do occur in irrigation channels and some highly modified rivers. Estuaries are also showing the impacts of activities within their rivers and catchments. Figure 3.3 shows the current condition of Victoria’s estuaries.

Figure 3.3 Current condition of estuaries in Victoria

Near pristine Largely unmodified Modified Severely modified

(Source: National Land and Water Resources Audit 2002)

Victorian River Health Strategy 27 A key point to note is that there are large areas across the State where the majority of rivers are in poor or very poor condition. In fact, only 56 out of the 950 reaches fully meet the criteria for ecologically healthy rivers as outlined in 1 Appendix 1. Of the 19 Victorian representative river categories shown in Figure 2.3 there are seven that no longer have any river length in an ecologically healthy condition. This deterioration is impacting on a range of community activities which are dependent on river health. These include commercial and recreational fishing. Of the ten freshwater or estuarine fish which were popular for angling, at least six are now considered as threatened (as a result of activities other than angling) and now have severe fishing restrictions placed on them. Most commercial harvesting of freshwater fish is now banned, and that which remains is mostly based on carp. Waterbodies such as Lake Boga and the , which are extremely popular recreational and tourist SECTION 1 spots, are now experiencing regular algal blooms and, in some cases, fish kills. Lake Boga is estimated now to experience four major algal blooms every 10 years at a cost to the region of $600 000 per bloom. The Gippsland Lakes now experience algal blooms every summer and major blooms every 3-5 years causing great loss of tourist revenue to

Strategy Background the region and major losses to the commercial fishing industry. While it should be noted that events like algal blooms, fish kills and blackwater did occur naturally, it would seem that the frequency at which they are occurring is increasing.

3.2 FUTURE OUTLOOK As outlined in section 2.3, many of the pressures on rivers in the past have involved: land clearing and use within the catchments and the riparian zones; flow regulation to supply water for domestic use and irrigation; and actual management activities undertaken within the channel, such as desnagging to assist in conveyance of floodwaters, mining or channel straightening. The impacts of these activities can take a long time to become evident, whether because there are contaminants within the system slowly moving downstream to new areas or because the reduced recruitment of plants or animals is only noticeable after the loss of mature adults. Many rivers are still responding to past changes and their ecological condition is on a declining trend.

Agricultural growth To a very large extent, the future of rivers in Victoria is linked to the future for agriculture and urban growth. Demand for water is predicted to increase. Victoria has set targets for agricultural production of $12 billion worth of food and fibre exports by the year 2010. These targets represent an increase from current export levels of $5 billion. These targets have been set within the context of the State Government’s goal of reversing the decline in the extent and quality of native vegetation, with the initial aim being ‘no net loss’. Land clearing controls are currently under review to give effect to this government policy. There will also be no further growth in the amount of water diverted from rivers in the north of the State because a cap on diversions has been implemented by the MDB Ministerial Council. Currently, new diversions are allowed only in the southern parts of the State. Because of these current controls, and more fundamentally because there is a natural limit to the availability of both water and productive agricultural land, the agricultural targets will be met through more efficient production methods and through changing land and water use to more productive industries. If Victoria is to maintain its current share of world wheat markets, by 2030 the area of land under wheat could expand by up to 30% as the world demand for wheat increases. Similarly, if Victoria is to maintain its current share of export markets in the dairy industry, then dairy herds could increase fivefold by 2030. Horticultural industries are also expanding. Given such expanding production, it is likely that pressures on rivers will increase rather than decrease. Whilst there is a cap on water diversions in the north of the State, further diversions are allowed in the south. The construction of large new public irrigation dams in southern Victoria is very unlikely. There may be some limited increases in the total water diverted from unregulated streams in southern Victoria to meet these agricultural targets.

28 Victorian River Health Strategy However, by far the most important mechanisms for meeting future water needs will be through the development of water markets to transfer water from low value uses to higher value uses, improvements in water use efficiency and water reuse. Water efficiency and reuse will become increasingly important in the future, providing the major additional sources of water. Figure 3.4 shows the potential for increased water-based economic activity and therefore the areas where the water is likely to go. This takes into account the available water resources, the ability to acquire significant volumes of water via trade and the likelihood of achieving significant water savings via efficiency gains. There is clearly considerable scope here with careful management to move towards meeting those agricultural targets. Meeting these targets will also involve increased fertiliser and pesticide use that may have implications for water quality in rivers unless carefully managed.

Figure 3.4 Potential for increased water-based economic activity

None Low Medium High Development potential limited by salinity

(Source: National Land and Water Resources Audit 2000)

Urban growth Urban growth also places pressure on rivers and streams. Providing reliable sources of clean drinking water to growing urban areas is becoming increasingly difficult due to competing demand from stakeholders including the environment. Under continued current trends in Melbourne metropolitan water usage, the capacity of the current system could be reached in around 11 years (Water Resources Strategy Committee for the Melbourne Area 2001). Water conservation and reuse will continue to be a major focus. Disposal of wastewater, both treated sewage and stormwater runoff, generates water quality issues for receiving waters. These include the management of nitrogen and phosphorus and also the management of toxicants both in the water column and in the sediments. The impact of residential development and subdivision of land on the quality of stormwater runoff is of growing concern, particularly given the expansion of the metropolitan urban fringe and rural residential subdivisions. This issue is being tackled through planning and development controls implemented by local government and is supported by the Victorian Stormwater Action Program.

Victorian River Health Strategy 29 Salinity One of the major current pressures on rivers is the issue of salinity. Table 3.1 shows predicted river salinities in some 1 of the major river basins in Victoria in the year 2100. Increasing salt concentrations in surface and groundwater are directly impacting on groundwater, wetland and river ecosystems. There can also be indirect impacts if remnant native vegetation is degraded by saline groundwater. Many of the areas where high groundwater salinity levels are predicted are low lying areas in catchments where there is remnant floodplain, wetland or riparian vegetation. Loss of riparian or catchment vegetation will affect waterway health. Even the solutions may have a detrimental impact on waterways as revegetation of the upper catchment can affect stream inflows. SECTION 1 Table 3.1 Predicted river salinity in selected river systems in Victoria, current to 2100

River and location Flow-weighted average river salinity (EC) Strategy Background Current 2020 2050 2100 at Quambatook 970 980 1480 2040 d/s Kerang weir 870 880 900 970 at Campaspe pumps 540 550 560 560 Campaspe River u/s River Murray 600 600 610 610 Goulburn River at Goulburn weir 120 120 140 140 Goulburn River u/s River Murray 130 140 230 230 at Casey’s weir 130 180 260 270 Broken Creek u/s River Murray 110 230 970 970 Oven River u/s River Murray 70 70 75 80 u/s River Murray 45 45 45 45

EC units Use

0-800 World Health Organisation considers 800 EC to be the upper salinity limit for drinking water. 800-1500 At 800 EC and above, damage can occur to irrigation crops, particularly high value horticulture. Salinities up to 1500 EC are unlikely to have a negative impact on aquatic biota. 1500-5000 Options for consumptive uses of water are restricted. Irrigation of most legume pastures and forage crops is not possible. Rice, maize and grain sorghum cannot be irrigated at this salinity. Direct adverse biological effects are likely to occur in river, stream and wetland ecosystems. Salinities of 5000 EC have a substantial negative impact on freshwater biota. 5000 + 5000 EC is the value that divides fresh water from saline water. Above this level, few crops can be irrigated and biodiversity is substantially reduced. At 10 000-15 000 EC, very few aquatic biota can survive.

(Source: NRE 2000)

30 Victorian River Health Strategy Plantations Large-scale establishment of plantations, while having benefits for example in the control of salinity, can significantly reduce the surface water runoff and recharge to groundwater. The reduction in runoff and the fall in groundwater levels can pose problems to waterways and wetlands, and impact on downstream water availability and security of water resource entitlements. A national working group, set up under the High Level Steering Group on Water, is currently developing principles for managing the impact of land use change on water resources. These principles should inform approaches to dealing with these issues in Victoria.

Climate change Climate must also be considered despite the considerable uncertainties involved in predicting our future climate. This is particularly the case because relatively small changes in rainfall can cause large changes to runoff and stream flows. Projected climate change modelling for Victoria indicates that less rainfall is likely across the State (ranging from -9% to +3% by 2030 and from -25% to +9% by 2070), with the decreases strongest in spring through most of the State (Climate Impact Group, in prep.). However, over northern Victoria in summer and autumn and over parts of southern Victoria in winter, the direction of rainfall change is uncertain. The modelling also strongly indicates an increase in dry spells during the spring-summer period and that extreme daily rainfall events are likely to become more extreme, even where average rainfall declines. Increases in annual average temperatures (both minimum and maximum) are also indicated with consequential increases in evaporation. Climate change will have implications for water allocation and environmental flows.

3.3 CONCLUSION Victoria’s rivers and streams are showing significant signs of degradation and many are still on a downward trajectory. If not addressed, this will put at risk the range of economic activities that depend on healthy rivers. The brief future outlook shows that there is no miracle on the horizon. The human pressures which in the past contributed to the current state of our rivers are likely to remain in the medium to long term. In particular, the demand for water will continue to grow and will need to be balanced against the need for environmental flows to maintain river health. This means that communities must produce more with less water and with a reduced impact on the environment. Water conservation and reuse will become increasingly important and will become the major focus for any additional sources of water. The management framework for rivers in Victoria must enable communities to deal with these issues. It must: • provide the means for the fair and equitable allocation of water, allowing for: - environmental flows and providing the means to improve these flows where necessary; - moving water to high value uses; -significant improvements in water use efficiency; and -re-use; • be able to improve water quality in rivers; • improve riparian and instream habitat; and • provide the most effective mix of protection and restoration activities, so that overall, we can look for an improvement in freshwater biodiversity and restoration of current threatened species and the framework must do so in ways that enable regional economies to continue to meet their economic targets.

Victorian River Health Strategy 31 2 A VISION FOR VICTORIA’S RIVERS

This section outlines: •the vision for the management of rivers in Victoria; • the broad conceptual basis for management; and

SECTION 2 •the statewide targets for river restoration. A Vision for Victoria’s Rivers for Victoria’s A Vision

32 Victorian River Health Strategy 4. A Vision for Victoria’s Rivers The Victorian management framework establishes a vision for river health across Victoria, sets out a series of targets to get there, and puts in place the mechanisms to achieve these targets. It is built on the foundations of community support and involvement, recognising that it is only with long-term support, commitment and a willingness by the community and Government to undergo change that any improvement in Victoria’s rivers can be made.

4.1 THE VISION The Government has a vision for the rivers of Victoria which is based on ecological sustainability.

Our rivers that are of the greatest value to the community will be protected as part of our natural heritage. Our rivers will be ecologically healthy, managed within healthy catchments: • supporting a diverse array of indigenous plants and animals within their waters and across their floodplains; • flanked by a mostly continuous and broad band of native riparian vegetation; • with flows that rise and fall with the seasons, inundating floodplains, filling billabongs and providing a flush of growth and return of essential nutrients back to the river; •with water quality that sustains crucial ecological functions; •with native fish and other species moving freely along the river and out to the floodplains and billabongs to feed and breed during inundation; • replenishing productive estuaries or terminal lakes; whilst • providing the essential basis for efficient, high value sustainable agriculture and other resource-based industries; • supplying clean and safe drinking water; • providing pleasurable environments for those enjoying a range of leisure pursuits; • preserving the values that are fundamental to our Indigenous cultures; and • maintaining the rivers’ place in our collective history. Our communities will be confident and capable, appreciating the values of their rivers, understanding their dependency on healthy rivers and actively participating in decision-making.

Victorian River Health Strategy 33 4.2 IMPLEMENTING THE VISION 2 4.2.1 The Broad Approach This vision is in the nature of ‘a beacon on the hill’ - a long term conceptual goal to which we aspire and to which our activities in the future will be directed. Achieving this vision is not an easy task. Because we have identified the characteristics of ecologically healthy rivers and have gone some way towards quantifying them, we know that some areas of the State are closer to achieving the vision than others. In many areas, significant change in the current pattern of river uses will be required to achieve the

SECTION 2 vision. Getting there will require major community commitment and investment over a planning horizon of at least 50 years. It will require long term leadership, processes to manage conflict, agreed priority-setting processes, financial and human resources, improved technology, improved decision-making and processes to support those adversely affected by decisions. It will require a much greater focus on efficient resource utilisation so that greater economic returns are achieved with less water and a reduced environmental impact. It will require further shifts in community understanding and values. The key will be to have a management approach which moves us towards the vision in achievable steps. A Vision for Victoria’s Rivers for Victoria’s A Vision The management approach will be based on four key elements.

Management approach for achieving the vision: • Protecting the rivers that are of highest community value from any decline in condition. • Maintaining the condition of ecologically healthy rivers. • Achieving an ‘overall improvement’ in the environmental condition of the remainder of the State’s rivers. •Preventing damage from future management activities.

This approach is a realistic one. It recognises that we have few rivers in good condition across Victoria and that urgent action is required to maintain these in their present condition, to ameliorate the impact of current management, to prevent or at least minimise future damage to all rivers, and to start the process of restoration in others. The approach is based on the simple philosophy of ‘prevention is better than cure’.

The management approach will be implemented through three major planks: • providing special protection for rivers and streams of very high value; • establishing regional 5 and 10 year targets for river protection and restoration through community-driven regional planning processes; and • establishing policies for specific management activities aimed at preventing damage to river health from future management activities and reducing the impact of current management activities.

Section 3 of the VRHS outlines in detail how this management approach will be implemented. Section 4 outlines the policies and management arrangements for specific management activities affecting river health that will assist in protection and restoration, and will minimise the damage to river health from future river management activities.

34 Victorian River Health Strategy 4.2.2 Protection and Restoration Throughout the VRHS, the concepts of protection and restoration are used. Protection is defined as ‘ensuring that there is no further decline in environmental condition’. Restoration is defined as ‘improvement or enhancement of the environmental condition of the river in the direction of ecologically healthy.’

4.2.3 Priority Setting and the Concept of ‘Overall Improvement’ The establishment of regional targets requires regional communities to identify their priorities for river protection and restoration over the target period. These priorities will guide the action and investment by the community and Government in the rivers in their region.

Priorities for protection and restoration will be set on the basis of: • protection of existing high value areas or areas in good condition; and • restoration of those areas where there is: - the highest environmental and community gain for the resources invested, and - real community commitment towards long term improvement of river health.

This means that there will be areas that are not of immediate high priority for restoration and that therefore will not be addressed in the short term. However, it should be noted that work required to comply with any legal or statutory requirements will be undertaken wherever necessary. The VRHS sets in place a framework for protection and active restoration, and for prevention of further damage, but recognises that within this framework some deterioration in existing condition could occur, due either to: • ongoing degradation of areas that are not a priority for work; or • new development which may have a very localised impact. Whilst the VRHS will put in place policies to minimise the impact of new development, there will always be some very localised effects. Therefore, the VRHS uses the concept of ‘overall improvement’ in setting targets for river protection and restoration, and measuring progress against these targets.

4.2.4 Aiming for ‘Ecological Health’ The vision establishes the condition of ‘ecologically healthy’ as the aspirational goal for river management and restoration for rivers in Victoria. An ecologically healthy river is one where some change from the natural state may have occurred. It is a river where some aspects of river condition may have been traded off to provide for human use. However, overall, the major natural features, biodiversity and/or functions of the river are still present and will continue into the future. Essentially, it is a river where a balance may have been struck between human use and the ecology of the river – a balance where the integrity of the system is still preserved, a reasonable level of human needs can be met and where both can be sustained into the future. The major characteristics of an ecologically healthy river are described in section 2.4.1. For the majority of rivers, the achievement of this goal is possible. It may be difficult. It may require significant community and government commitment and a long timeframe to achieve it but it is possible.

Victorian River Health Strategy 35 For a number of river reaches immediately downstream of existing major dams or affected by existing urban infrastructure, the concept of returning them to a condition where the general reference point is based on their pre- 2 European state may not be possible. In these cases, the structures in place may have significantly changed the hydrology, the channel shape or floodplain linkages. However, even in these cases, the concept of ‘ecological health’ will still be used to establish long-term goals for these systems by changing the reference point and aiming for the ecologically healthy state of a river more closely approximating its current hydrology and channel condition, such as a river of a smaller size or stream order, or a different river class or ecosystem type. Further work will be undertaken to determine the characteristics for ecological health for each system.

SECTION 2 4.3 STATEWIDE TARGETS In working towards the vision, the following targets for river protection and restoration will be used to measure progress across the State.

All Heritage Rivers to be maintained at least to their current condition and their Heritage River values protected.

By 2021: A Vision for Victoria’s Rivers for Victoria’s A Vision • one major representative river reach in ecologically healthy condition in each major river class. • an increase of 3000 km in the length of rivers in excellent or good condition.

By 2011: • an improvement in the status of designated freshwater-dependent focal species. • significant improvements achieved in environmental flow regimes of 20 high value river reaches currently flow stressed. • 4800 km of rivers with improvement of one rating in the measurement of riparian condition. • an increase of 7000 ha of riparian areas under management agreements. • 600 km of rivers where instream habitat has been reinstated. • 95% of all highland and upland and 60% of all lowland monitoring sites will meet SEPP environmental quality objectives. • 1000 high value public assets provided with appropriate level of protection.

By 2005: • an increase in length of river accessible to native fish by an additional 2000 km. • significant improvement in floodplain linkages in ten areas of national and/or State significance. • all rivers with either sustainable catchment limits or negotiated environmental flows in place. • report on the second benchmarking of the environmental condition of Victorian rivers. •a quarter of agricultural production produced from natural resources that are managed within their capacity. By 2015, this will increase to half of agricultural production (as stated in Victoria’s Salinity Management Framework).

Progress towards the achievement of these targets will be measured through regular reporting on river protection and restoration activities, and through regular resource condition monitoring.

36 Victorian River Health Strategy 4.4 PRINCIPLES FOR IMPLEMENTING THE VISION Achieving the vision requires a long term concerted effort and continued investment by the Victorian community. The method by which this will be achieved will be through regional waterway health planning and implementation processes. The following principles will be used to guide these processes. These principles are consistent with the broader integrated catchment management (ICM) principles, the catchment-to-coast approach and the principles outlined in the SEPP (Waters of Victoria).

Integrated Catchment-to-Coast Management Decisions affecting river health must be made within an ICM context: • recognising the integral relationship between rivers and their catchments, their position within broader landscapes, and their linkages with and importance for coastal systems; • addressing problem causes as well as symptoms; and • balancing social, economic and environmental needs.

Integrated River Health Outcomes Outcomes sought are improvements in river health. Management programs should be aimed to deliver the best possible river health outcomes across the range of management activities within the waterways and catchments.

Community Involvement Communities and stakeholder groups will have the opportunity to be involved in all the major phases of planning and implementation of programs affecting river health.

Decision-making Processes Regional communities may need to consider a number of difficult issues in planning on river health and may have to make trade-off decisions. To ensure that the most appropriate decision is made, decision-making processes on issues related to river health will: • use the best available scientific information; • ensure access to decision-making for all stakeholders in river health; • be open and transparent, providing available information to all stakeholders and justifying decisions as they are made; • be in accordance with the Precautionary Principle; •be based on a risk-based approach; and • be guided by a careful evaluation to avoid serious or irreversible damage to the environment wherever practicable.

Shared Responsibility and Partnerships All members of the community, including industry, landholders, individuals, and rural and urban communities, derive benefits from the use of rivers and streams and share responsibility for managing these resources sustainably. Ecologically sustainable management of rivers and streams can only be achieved through a long term partnership between all these parties – Government, communities, industry, landholders and individuals, each with clear agreed roles.

Victorian River Health Strategy 37 Stewardship of Natural Resources In determining roles and responsibilities, all natural resource users and managers will recognise their 2 dependence on a healthy resource and will have a duty of care to ensure that they do not damage the natural resource base and that they take all reasonable steps to protect land and water resources.

Mechanisms Mechanisms used to achieve improved river health will be an innovative mix of improved planning, market mechanisms, regulation, industry self-regulation and on-ground works.

SECTION 2 Investment Relative contributions to investment in river management and restoration will reflect the long term private and public costs and benefits involved.

Accountability Roles and responsibilities for river health will be identified and progress towards meeting State and regional targets will be measured. Those involved will be clearly accountable to Government and the community for

A Vision for Victoria’s Rivers for Victoria’s A Vision river health outcomes.

Adaptive Management Recognising the variability of natural systems and our incomplete knowledge of river and catchment processes requires that management of river health should be adaptive, improving in response to knowledge gained through monitoring and research.

38 Victorian River Health Strategy THE INTEGRATED MANAGEMENT FRAMEWORK 3

This section describes the detailed management framework which will provide: • protection of high value rivers, • the maintenance of ecologically healthy rivers, and

• an overall improvement in the environmental condition of the remainder of Victoria’s rivers, SECTION 3 through: •providing special protection for rivers and streams of very high value, and •establishing regional 5 and 10 year targets for river protection and restoration through community-driven regional planning processes. The framework builds on the current planning and management arrangements for river health. The Integrated Management Framework

Victorian River Health Strategy 39 5. The Integrated Management Framework This section describes the detailed management framework which will provide: 3 • protection of high value rivers; • the maintenance of ecologically healthy rivers; and • an overall improvement in the environmental condition of the remainder of Victoria’s rivers.

5.1 PROTECTION FOR RIVERS AND STREAMS OF HIGH COMMUNITY VALUE The protection of rivers and streams of high community value will occur through two mechanisms:

SECTION 3 • the provision of special protection for rivers and river systems of very high community value; and • priority setting within the regional planning and target-setting process.

5.1.1 Special Protection for Rivers and River Systems of Very High Community Value There are a small number of rivers that are of particularly high value to all Victorians. These include rivers of high conservation, recreational and/or cultural value. These rivers will be preserved as part of our heritage. In 1991, Victoria reviewed the values of all its rivers and put in place a system of Heritage Rivers. Eighteen river reaches were designated as Heritage Rivers because of their very high nature conservation, recreational, social or cultural value or because of a combination of these values. This review also identified 26 Natural Catchment Areas. Heritage Rivers and Natural Catchment Areas are listed in Appendix 2. These rivers and catchments are protected under the Heritage Rivers

The Integrated Management Framework Act 1992. At the same time, it was recognised that the River Murray, whilst technically not a Victorian river, was of very high value to Victorians and should be regarded in a similar way to a designated Heritage River. In addition to these Heritage Rivers and Natural Catchment Areas, 11 wetlands of very high conservation value have been listed as Ramsar wetlands and are consequently subject to special protection mechanisms under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999. Most of these wetlands are strongly influenced by river health (see Appendix 2). These special protection mechanisms are aimed at providing special status and protection for the rivers and wetlands that are essentially ‘the jewels in the Victorian Crown’. Of the existing Heritage Rivers, two particularly stand out because of their: • high level of conservation value; • high level of naturalness of flows; • relative intactness of the entire river system; and • significance for larger systems. These are the Ovens River and the Mitchell River. These two rivers represent the only two large rivers in Victoria that are in good condition and relatively intact throughout their entire river systems. Because of this, both provide vital inputs to larger scale systems – the Mitchell River to the Gippsland Lakes and the Ovens River to the Murray-Darling system. Deterioration of the Ovens and Mitchell river systems is likely to have major detrimental impacts on these larger scale systems. Sections of these two rivers are protected as Heritage Rivers but this does not recognise their uniqueness as entire river systems. Management arrangements need to be put in place which recognise the very high value of these two river systems to Victoria and to Australia. These arrangements will need to take an integrated management approach to protect the rivers whilst recognising their significance to their rural communities and their place in regional economies.

40 Victorian River Health Strategy The Ovens River and the Mitchell River will be recognised as river systems of very high value and will be managed to protect these values whilst recognising their importance to regional communities.

The Department of Natural Resources and Environment will work with the North East and East Gippsland Catchment Management Authorities to determine options for the management of the Ovens and Mitchell rivers which recognise their value, and will make recommendations to the Minister for Environment and Conservation by December 2003.

5.1.2 Other Rivers of High Value There are many rivers or sections of rivers which, whilst not designated Heritage Rivers or linked with Ramsar wetlands, also have high community values. The protection of these will be ensured through priority setting and target setting within the regional river health planning process which is discussed in detail in section 5.2. These rivers include those which have a range of statewide and regional environmental, social and economic value. Within the regional planning process, regional communities will identify their rivers or river reaches of high value and set priorities for protection and/or restoration. To determine the rivers or river reaches of high value, the assets associated with the river and the relative value of these assets will be identified. Assets in this sense represent aspects of the river which hold value for the community and about which the community would be concerned if they were lost or degraded - a different definition to that used solely in a commercial, accounting connotation. The major classes of river-related assets to be considered include: • environmental assets including: - the presence of rare species and/or communities and geomorphological features associated with the river; - sites of significance; - areas with high levels of naturalness of components of the river system including whether the river or a major river reach meets the criteria for ecologically healthy; and - representative rivers (this is discussed in more detail below); • economic assets including: - important regional industries that depend on river health; - town water supplies that depend on river health; and - public infrastructure associated with rivers; and • social assets including: - important recreation sites; and -sites that are significant for Indigenous and European culture. The regional planning process will set targets for the protection and restoration of rivers using a priority setting process which is risk-based and designed to: • protect existing high value areas or areas in good environmental condition; and • restore those areas where there are: - the highest environmental and/or community gain for the resources invested; and - real community commitment towards long term improvement of river health.

Victorian River Health Strategy 41 Representative rivers One of the major environmental values to be considered in the regional planning process is the need to have a series 3 of representative rivers across the State; that is, rivers in an ecologically healthy condition that can be used to represent the major river classes that once occurred naturally across Victoria. Maintaining a network of representative rivers will ensure that the natural diversity of river systems in Victoria is maintained for future generations. In moving towards the vision outlined in Chapter 4, a statewide target has been set to establish a system of representative rivers.

SECTION 3 By 2021, there is at least one major river reach in each of the river regions represented in Victoria that meets the definition of ecologically healthy.

The LCC (1991) Rivers and Streams Special Investigation recommended 15 rivers to be managed as representative rivers. These recommendations were endorsed by Government. The representative rivers selected as part of that study were based on a combination of geomorphic units and hydrological regions. As discussed in Chapter 2, there are now considerably more data on riverine and terrestrial biodiversity than existed in 1991. As part of the background work for the VRHS, a new preliminary classification of rivers in Victoria was undertaken to determine the major types of rivers in the State based on river ecology (see Figure 2.3). A list of rivers that could be considered as representative in this new river classification system is outlined in Table 5.1. The Integrated Management Framework The rivers suggested are those which are ecologically healthy or as close as possible in that region. River reaches designated as Heritage, Representative or Essentially Natural Catchments by the LCC special investigation have been used where they were present, such as the Ovens and Mitchell rivers, Mt Vereker Creek (Wilsons Promontory), and the (east of Ballarat). In cases where the length of river in good condition was not considered to be sufficiently representative of the region, two reaches have been suggested. In region 4, for example, a reach of the Ovens River has been identified plus one of the tributaries of the Goulburn River upstream of Seymour (the Yea, Murrindindi or Acheron rivers). Wherever possible, reaches of the same river system have been used across regions. For example, the Mitchell and the Ovens river systems flow through three river regions each and therefore have been suggested as the representative river for all three, forming an almost continuous reach. The Avoca River flows through two regions, and two separate reaches have been suggested – a lowland reach plus a reach upstream of St Arnaud Creek. The rivers listed in Table 5.1 have been suggested only and the Victorian Environment Assessment Council will be requested to review the original LCC recommendations, taking into account these suggestions, any new knowledge and regional input.

The Victorian Environment Assessment Council will be requested to review the LCC recommendations on representative rivers in the light of new knowledge.

The intention is that these representative rivers, when finalised, will be considered to be of high ecological value and will be managed accordingly. This will be achieved through the regional planning process described below. Where the reaches selected do not currently meet the definition of ecologically healthy, they will be considered as an environmental asset of high value in the regional planning processes and therefore as one of the priorities for restoration.

42 Victorian River Health Strategy Table 5.1 Interim river regions and suggested representative rivers

River Region Area Suggested Representative Rivers LCC

RR1 Alps and C3, A12 RR2 North-east uplands Snowy Creek C2 RR3 North-east floodplains Koetong Creek RR4 North-central uplands Ovens River and a tributary of the Goulburn (Acheron, Yea or Murrindindi) A2 RR5 North-central midlands Ovens River A2 RR6 North-central floodplains Ovens River A2 RR7 North-west uplands Avoca River (upper) or Axe Creek C9 RR8 North-west floodplains Avoca River (lower) RR9 Grampians Upper and Jimmy Creek RR10 Glenelg catchment Glenelg River (estuarine section) and Glenelg River between Mathers Creek and Harrow A17 RR11 Otway Ranges A16 RR12 South-west floodplains between Blind Creek and Grey Creek RR13 South-central Lerderderg River and Curdies Creek A15, C10 RR14a East Gippsland east of the Snowy River - uplands (upper) C6 RR14b South-central uplands catchment (part of upper catchment) RR15 South-eastern slopes Wonnangatta River A12 RR16a East Gippsland east of the Snowy River - lowlands Thurra River (lower) C6 RR16b Strezleckis C13 RR17 South-eastern plains Mitchell River A12 RR18 Wilsons Promontory Mt. Vereker Creek B26 RR19 South-central lowlands LaTrobe River (part of upper) or upper Bunyip catchment

Victorian River Health Strategy 43 5.2 ESTABLISHING REGIONAL TARGETS FOR RIVER PROTECTION AND RESTORATION – THE REGIONAL PLANNING PROCESS 3 Five and ten year regional targets will be set for river protection and restoration through community-driven regional planning processes. These processes will reflect a balance between regional economic, environmental and social imperatives, and will deal with all the issues affecting rivers, such as flow, water quality, riparian and instream habitat, and catchment management. These targets will be the mechanism within regions for: • protection of high value rivers; • maintenance of ecologically healthy rivers; and • achievement of an overall improvement in the environmental condition of the rest. SECTION 3 The framework is based on a system of regional planning processes developed within a State policy context. It builds on the current planning arrangements and represents their next evolutionary phase.

5.2.1 Current Planning Arrangements for the Management of River Health The current arrangements for the management of river health are undertaken in the ICM context, where the major focus is on regional catchment planning and implementation with overall policy direction and investment provided at the State level. In Victoria, the primary focus of ICM arrangements is the Regional Catchment Strategies (RCSs). The RCSs were developed in 1997 by the then CALP Boards, together with their regional communities. The RCSs set out a vision for the management of a region’s land and water resources, establish long term objectives and identify priorities for action and

The Integrated Management Framework investment amongst the various natural resource management issues. The RCSs are the over-arching strategy for the development, management and conservation of land and water resources in each region (see Appendix 3 for a map of Victoria’s CALP regions). They are currently being reviewed under the auspices of the Catchment Management Authorities (CMAs) and Port Phillip and Westernport CALP Board, and the renewed RCSs will all be completed by June 2003. Under the broad policy umbrella provided by the RCSs, detailed action plans for priority land and water resource management issues are developed. All the current RCSs have identified river health and waterway management as one of their priority natural resource management issues. Within this context, there is then a range of action plans which deal with the major specific issues primarily affecting river health, such as flow, water quality, riparian and channel condition, and floodplain management. Table 5.2 details the major objectives of each of these action plans. Many of these have local sub-plans. In addition, there are several other plans which do not have river health as their primary consideration but which do have some implications for river management and need to be linked at some level. These include RCS action plans like the Regional Vegetation Plans, and Coastal Action Plans. Obviously, there are a number of action plans which affect river health, all of which have been developed separately. This has occurred because each of the issues: • was perceived by the regional community as a major natural resource management issue for that region and there was a willingness to get involved in its resolution; • has its own set of stakeholders; • potentially involves specific trade-off decisions which take into account economic, environmental and social issues; • requires information from specific disciplines and different modelling bases; and • is managed by different management authorities, under different legislative instruments, with different funding sources and reporting arrangements.

44 Victorian River Health Strategy In addition, different issues became apparent in their regions at different times; for example, salinity became obvious in north-west Victoria long before algal blooms and nutrients were identified as issues. Therefore, issues have been dealt with individually because of their complexity and because of the need for regional communities to fully understand each issue and all its implications for them as they make trade-off decisions between environmental condition of rivers and economic costs. The outcomes of these planning processes are action plans that set targets for each issue that reflect the best balance of economic, social and environmental benefits for these communities.

Table 5.2 Major objectives of existing regional river-related RCS action plans and related planning processes which have implications for river health

Driver of Strategy/ River Health Action Plan Scale Responsibility Purpose

Determines the Regional Regional CMAs Over-arching strategy for the development, priority of river Catchment management and conservation of land and health within Strategy water resources; establishes regional vision, broader regional goals and priorities. natural resource Detail for achievement in the range of management component action plans. issues

Flow Streamflow Catchment/ RWAs Developed on unregulated rivers to manage Management Sub-catchment diversion licences. They establish Plans environmental objectives, immediate environmental flow provisions, mechanisms to achieve long-term environmental flow objectives, rostering rules, trading rules and rules covering the granting of new licences.

Bulk Water system WAs Property right to water held by water authorities. Entitlements Specify volume, rate of extraction, security and environmental conditions to be met.

Stressed River Catchment/ CMAs Establish clear environmental flow objectives, Plans Sub-catchment identify mechanisms to provide additional water and prioritise the use of that water, identify complementary instream and riparian habitat works that will maximise environmental gains or ameliorate flow stress, and establish agreed cost sharing for implementation.

Water Quality Water Quality/ Catchment CMAs Establish priority nutrient sources and targets Nutrient for nutrient reduction, identify priority actions, Management and establish cost sharing and roles and Plans responsibilities.

SEPP (Water of Catchment EPA Establish beneficial uses for water quality, Victoria) environmental quality objectives and Schedules indicators. Attainment programs establish actions to achieve targets.

Victorian River Health Strategy 45 Driver of Strategy/ River Health Action Plan Scale Responsibility Purpose

3 Water Quality Salinity Catchment/ CMAs Recommend options and targets for Management Sub-catchment managing and reducing the environmental Plans/Land & and socio-economic impacts of salinity. Water Management Plans

SECTION 3 Stormwater Local LG/ CMAs Establish priority issues and actions to reduce Management pollutant and nutrient runoff into waterways Plans from urban areas.

Wastewater Local WAs Set out agreed programs for maximising Management beneficial use of effluent, minimising nutrient Plans impacts and impacts of other contaminants on waterways, and moving towards ecological sustainability.

Environment Local EPA Licences, set by EPA, contain conditions that Improvement aim to control the operation of certain Plans and premises in order to ensure that there is no The Integrated Management Framework Licences adverse impact on the environment. The conditions vary but typically include waste discharge limits, monitoring requirements and reporting requirements. Increasingly, licences include environment improvement plans that aim to continually reduce the impact of the premises on the environment.

Channel and Waterway Catchment/ CMAs Provide priority issues and actions to halt Riparian Zone Management Regional waterway degradation, to provide protection Plans of environmental values of waterways and where possible to restore lost values and beneficial uses.

Rural Drainage Sub-catchment LG, CMAs Establish priority issues and actions and role Plans of stakeholders for the effective and sustainable management of rural drainage activities, to reduce the impact on other landowners and areas of environmental importance, such as wetlands and waterways.

Crown Regional NRE, CMAs Provide condition of Crown frontages, Frontage including private and public, and prioritise Management frontages for action in relation to the Plans protection of their environmental, cultural and aesthetic values.

46 Victorian River Health Strategy Driver of Strategy/ River Health Action Plan Scale Responsibility Purpose

Channel and Regional Regional CMAs Set priorities and actions for management of Riparian Zone Vegetation native vegetation, including riparian. Plans

Floodplain Floodplain Regional CMAs Establish improved understanding of flood Management causes and effects, coordinated action and Strategies decision making, the sharing of public and private responsibilities, more effective target and priority setting, equitable investment and cost- sharing, effective performance assessment, and improved ongoing communication with floodplain management stakeholders.

Floodplain Local CMAs, LG In accordance with the regional floodplain Management strategy, establish management guidelines for Plans development and use of specified areas of a floodplain.

Ramsar site Local in a NRE Establish strategies to maintain ecological plans whole-of- character of Ramsar floodplain sites, including catchment maintaining or restoring appropriate water context regimes.

Biota Fisheries Catchment NRE Establish management directions for fishing Management activities, fish stocks and fish habitats in Plans accordance with government policy and the requirements of the community to ensure the sustainability of the base while optimising economic and social benefits.

Biodiversity Landscape NRE Identify priorities and map significance for Action Plans biodiversity conservation. Using current information on species requirements, they identify the best options for restoring biodiversity.

FFG Action Mostly local NRE Establish management actions required to Statements manage threatening processes or to protect threatened species or communities.

Estuary/ Coastal Action Regional/local Coastal Establish management actions to deal with Terminal Lake Plans Boards attributes of coastal regions or specific issues affecting coastal systems.

Estuary Local Coastal Outline management arrangements for specific Management Boards estuaries. Plans

Ramsar site Local in a NRE Establish strategies to maintain ecological plans whole-of- character of Ramsar estuary or terminal lake. catchment context

Victorian River Health Strategy 47 Limitations of the current arrangements These river-related action plans often recognise the linkages between the issues but do not, at this stage, seek to 3 optimise the linkages between plans, nor recognise cumulative impacts of various issues. They do not formally integrate many of their actions nor focus on an integrated river health outcome. There are no clear mechanisms for setting priorities across plans or to ensure a catchment to coast approach. Integration and priority setting tend to occur somewhat haphazardly at the level of the development of work programs. In addition, the State policy context in which the regional plans are undertaken does not provide clear direction.

5.2.2 Future Planning Arrangements SECTION 3 Given the investment of regional communities in the current planning arrangements, it is important to have a regional planning process which not only builds on the crucial work undertaken to date but also encourages better integration of plans, provides a focus on integrated river health outcomes, facilitates a catchment to coast approach, and is undertaken within a clear State policy context. The planning framework needs to be consistent with policy directions taken at broader scales, such as the goals, objectives and requirements of the National Action Plan for Salinity and Water Quality and the ICM Policy of the MDB Ministerial Council. A Vision for Victoria’sRivers A Vision Effectively, there needs to be a hierarchy of planning where the national, State, regional and local scales are vertically integrated with the primary focus of decision-making being on regional planning and management.

State policy context At the State level, policy direction is now provided by this Victorian River Health Strategy, the complementary statutory instrument, the SEPP (Waters of Victoria) which is now under review, the State Coastal Strategy and the general policy context in which these operate (section 1.2). The SEPP (Waters of Victoria) is developed under the Environment Protection Act 1970. It provides the statutory framework of goals and objectives for environmental quality within which RCSs and their action plans are developed and implemented. It sets beneficial uses, provides policy direction on activities that pose a risk to beneficial uses and establishes statewide objectives for various aspects of river health, particularly water quality. The statewide objectives provide further direction on the conditions necessary to achieve ecologically healthy rivers. They provide guidance to regional planning processes on how to achieve healthy aquatic ecosystems. In developing these statewide objectives, consideration is given to any national guidelines or standards that may be relevant. The general philosophy behind the SEPP is that if any of its objectives are not met within a region, then the following regional management planning process is triggered to establish targets for the improvement of river health in that region. Given this, the SEPP also provides the statutory framework for the development of regional targets for river protection and restoration via the regional planning processes described below.

Regional planning processes The regional planning process builds on the existing river-related action plans but includes a clear process for integration. This involves the evolution of the current Waterway Management Plans into regional River Health Strategies (RHSs). The regional RHS will be an umbrella strategy coordinating the other river-related action plans.

48 Victorian River Health Strategy The regional River Health Strategy will:

1. Identify environmental, recreational, cultural, social and economic assets. This will be undertaken for each river management unit (generally major river reaches or sub-catchment) and will include the comparative value. (See Box 5.1 for indicative set of assets.)

2. Identify river reaches of high value.

3. Identify threats. This will involve the identification of any processes which threaten these values and the severity of the risk involved.

4. Identify opportunities for restoration and requirements for restoration.

5. Set broad priorities for protection and restoration using a risk-based approach which includes: •a broad analysis of: - asset value, the severity of threat and the approximate $ cost of action, and - likely increase in environmental condition (i.e. environmental gain) per approximate $ cost of action; and • level of community commitment.

6. Identify broad actions/action plans required. This step will identify the key specific action plan required and its overall priority (e.g. if flow is a threat, then a Streamflow Management Plan may be required; if the threat is increased incidence of algal blooms, then a nutrient management plan may be needed).

7. Include outcomes of detailed issue-specific action plans, where these have already been undertaken. These action plans identify: • detailed options for actions and analyse these using a cost-benefit approach; •priority actions; • roles and responsibilities; • the cost-sharing arrangements; • the timetable for implementation; and •5 year implementation targets and 10 year resource condition targets; or undertake the development of new action plans where required.

8. Provide 5 year implementation targets and 10 year resource condition targets for major river reaches. These targets will be included in a schedule of regional resource condition targets to be included in the RCSs. An indicative set of target areas for which targets could be set in a regional RHS is given in Box 5.2.

9. Set integrated river health objectives for major river management units. Targets will be integrated to form river health objectives for the major river reaches. These will be defined in terms of the environmental assets that will be protected or restored and detailed as an environmental condition rating (i.e. as an ISC set of scores).

10. Include a monitoring, reporting and review program. This will enable assessment of progress against both resource condition and implementation targets.

11. Include a community awareness program.

The regional RHS and its specific-issue action plans will be developed in consultation with the community and key stakeholders.

Victorian River Health Strategy 49 This regional planning process is illustrated in Figure 5.1 which shows the key outputs of each element of the regional RHS hierarchy. The priority-setting steps are clearly those parts of the process where the economic, social and 3 environmental implications are taken into account and any trade-offs are made. The regional RHS and its specific-issue action plans will direct the development of annual works programs. These are developed by CMAs as part of a three-year rolling regional activity plan which identifies activities to be funded in that period. In identifying these activities, those that have multiple benefits – that is, are a high priority in a number of action plans and therefore address a number of threats – will be clearly identified.

SECTION 3 The Department of Natural Resources and Environment will develop detailed ‘Guidelines for the Development of Regional River Health Strategies’ by September 2002.

Figure 5.1 Proposed regional management framework

Regional Catchment Strategies Set regional priorities across issues and catchments The Integrated Management Framework River Health Strategies Biodiversity Other land plants inc. Native Vegetation Plans Pest Plants and Animals Identify: Action Plans Dryland Salinity Plans • environmental, cultural, social & economic assets • threats • opportunities • broad priorities

Flow Water Quality Waterway Mgt Floodplain Mgt Streamflow Mgt Plans Fisheries Mgt Plans Nutrient Mgt Plans Waterway Mgt Plans Floodplain Mgt Plans Bulk Entitlements Salinity Mgt Plans Crown Frontage Plans Rural Drainage Plans Groundwater Mgt Plans

Targets from each are integrated and then related back to assets. Ta rgets can be articulated as resource condition objectives.

Multi-benefit - integrated 3 year works program

NB: This diagram shows the key types of river-related action plans that are currently undertaken. It does not include any of the local management plans referred to in Table 5.2.

50 Victorian River Health Strategy A key feature of the regional RHS is the inclusion of a register of all the major environmental, economic and social assets associated with the river. These assets are those attributes of the river which hold value for the community and about which the community would be concerned if they were lost or degraded. In general terms, these river-related assets equate to the beneficial uses protected by the SEPP (Waters of Victoria). Box 5.1 outlines an indicative set of assets to be considered in all regional river health planning processes. This represents the development of a consistent, statewide approach to the identification and valuation of river-related assets. It is the first stage of a major project to develop a risk-based decision-support framework which will assist regional communities and CMAs to set priorities for river protection and restoration in a consistent way at a range of scales, including within the regional RHS, within component waterway management action plans and in the development of annual work programs.

A partnership of the Department of Natural Resources and Environment, CMAs and Melbourne Water will progressively develop a risk-based decision-support framework to assist in setting priorities for river protection and restoration.

The development of the regional river-related asset register within the regional RHS is a fundamental step forward in integrated river management. It provides the focus for the integration of all the activities impacting on rivers by providing the basis for the identification of high value rivers/reaches in a triple bottom line approach. The protection and/or restoration of the high value assets in these rivers/reaches provides the common objectives for all the relevant river-related action plans and ensures the alignment of specific-issue action plans towards achieving these objectives. The inclusion of associated floodplain wetland systems and downstream estuarine or terminal lakes systems ensures that these systems are considered appropriately within the regional river health planning process and that overall an integrated catchment-to-coast approach is being implemented.

Overall, the regional RHS provides a clear focus on integrated river health outcomes, better integration of river- related activities and more effective use of resources by: • identifying a common, consistent set of environmental, social and economic assets and values to be considered in all river-related action plans; • identifying all potential threats to these assets to be considered in the planning and priority-setting process; • developing, aligning and implementing issue-specific action plans in this broader context of river health; • developing integrated river health objectives and targets for each major river reach; • providing a clear process for identifying multiple benefits of key activities; and • providing the basis for the development of multi-benefit annual work programs. The regional RHS provides for protection of high value areas, the maintenance of ecologically healthy rivers and the achievement of overall improvement in river health by setting river health objectives and targets which: • clearly identify reaches which will be protected and the activities required to protect them; and • determine the specific areas for restoration, the restoration activities required and the expected level of improvement to be achieved.

Victorian River Health Strategy 51 Box 5.1 Indicative Asset Register to be Developed in the Regional River Health Strategy

3 The following shows the environmental, economic, social and cultural assets to be considered within the development of the regional RHS. This approach ensures a consistent, statewide approach to the identification of assets. It also ensures that any areas considered to be of high value or high priority at the statewide level are clearly identified. It should be noted that this indicative asset register and its use in regional river health planning is subject to further review and refinement in the future, to better meet regional planning requirements.

SECTION 3 Environmental Assets Social Assets Economic Assets Rarity Recreation • Irrigation water supply • Significant fauna and/or flora, • Fishing • Proclaimed water supply i.e. regarded as rare or • Non motor boats catchments threatened species • Motor boats •Public infrastructure • Significant Ecological Vegetation • Camping • Agricultural land Classes • Swimming •Tourism •Wetland/estuary significance •Passive recreation •Power generation •Wetland rarity • Commercial fisheries Cultural • Sites of significance • Supply of water for industry •Sites of cultural significance

The Integrated Management Framework • Ecosystem services Representativeness - Indigenous culture • Representative river - Historical sites • Native title claim Naturalness • Listed landscape • Natural macro-invertebrate communities Flagship Species • Natural riparian vegetation: - Width - Structural intactness - Longitudinal continuity • Natural fish populations - Observed:expected - Proportion of introduced fish • Fish migration • Ecologically healthy river

Large Scale Significance • Heritage River • Ramsar wetland

52 Victorian River Health Strategy Box 5.2 Indicative Set of Target Areas to be included in the Regional River Health Strategy and Related Action Plans

Targets in these areas will be set through the regional RHS and its component action plans, and will be included in the schedule of targets in the RCS. Five Year Implementation Target Areas • Number of rivers with negotiated environmental flow regimes • Number of rivers with improvements made to environmental flow regimes • Level of reduction in nutrient loads from priority sources within catchment • Area of riparian land under management agreements • Area of riparian land vegetated • Length of river subjected to riparian weed control • Number of barriers where fish passage restored • Number of plans developed for areas of high social value • Specific action plans to be developed Ten Year Resource Condition Target Areas • Length of river in excellent or good condition • Number of high value river reaches with adequate environmental flows • Reduction in nutrients at key monitoring sites within catchments • Reduction in salinity at key monitoring sites within catchments • Reduction in sediment loads at key monitoring sites within catchments • % of monitoring sites meeting SEPP (Waters of Victoria) objectives • Length of river with improvement of one rating in the measurement of riparian condition • Length of river with improvement of one rating in physical form subindex • Length of river where instream habitat has been reinstated • Increase in river length made accessible for fish movement • Improved floodplain linkages • Number of high value public assets with appropriate level of protection from flooding and erosion • Number of high value environmental assets protected • Representative rivers in good or excellent condition • Value of Heritage Rivers maintained Community Involvement • Number of people involved in community monitoring • Number of people participating in river health management programs

Victorian River Health Strategy 53 5.2.3 Transition Whilst the proposed future arrangements are a logical extension of where we are now, the transition towards them 3 needs to be carefully managed. The regional RHSs and issue-specific action plans are at different stages of development across the State. There has been considerable commitment and investment in these plans from the various regional communities. It is important that this impetus and goodwill is not lost and that the proposed arrangements are not seen as ‘another planning exercise where nothing ever happens’. CMAs will be responsible for managing the transition in their regions. This will involve completing the issue-specific action plans currently under development, developing the umbrella regional RHS and identifying any further action plans likely to be required. SECTION 3 Regional RHSs will be completed in all regions by June 2003.

The approach outlined above enables communities to make decisions on priorities and trade-offs between environmental, social and economic benefits in an informed, transparent way. However, these decisions could be further assisted if it were possible to compare the relative values of economic, social and environmental assets. Currently, this cannot be undertaken in any consistent way and will therefore require considerable thought and innovation in the future.

5.2.4 Review Process

The Integrated Management Framework Once the proposed arrangements are in place, there will be a process of regular review. This will occur as part of the regular review of the RCSs. The regional RHSs together with their action plans will be reviewed on a five yearly basis, and implementation and resource condition targets revised if necessary. As the action plans are implemented and reviewed, regional communities may choose to integrate some of these plans under the umbrella of the regional RHS.

5.2.5 Community–Government Partnership The regional RHSs will represent the long-term plan for the management and restoration of the rivers in a particular region. The task can only be undertaken as a partnership between Government and regional communities. The formalisation of this partnership will occur through the process of government endorsement of the regional RHSs and their action plans. Government endorsement will be required for the regional RHSs and for the specific issue action plans as they are developed. This step of government endorsement is an important one. It signals that the regional strategy/action plans are consistent with government policy, eligible for State Government funding for particular activities, and consistent with Commonwealth accreditation criteria.

54 Victorian River Health Strategy SPECIFIC MANAGEMENT ISSUES 4

This section outlines management arrangements and policies for specific management activities affecting river health which will assist in protection and restoration and will minimise the damage to river health from future river management activities. These include:

• water allocation and the management of river flows; SECTION 4 • management of water quality; •management of riparian land; and • management of the river channel. Specific Management Issues

Victorian River Health Strategy 55 6. Environmental Flows and Water Allocation 4 6.1 INTRODUCTION The flow of a river is its single most valuable aspect for our communities from an economic point of view. The water provided by our rivers supplies drinking water for four million people across Victoria and supports irrigated agriculture worth $5.2 billion. In the future, the importance of Victoria’s irrigated agriculture will grow as annual exports of food and fibre are increased to the target of $12 billion by 2010. However, the flow of a river is also fundamental to its ecology. Box 6.1 outlines the dependence of river ecology on its

SECTION 4 flow regime.

Box 6.1 The Importance of River Hydrology for River Ecology

As described in Chapter 2, the flow of a river is fundamental to its ecology. The flow regimes of rivers across Victoria are inherently variable. The variability of a flow regime occurs in three different time scales:

Specific Management Issues • daily - small changes in day-to-day river height; • seasonally - the changes in flows due to seasonal rainfall or snowmelt, which include small freshes or larger flushes within the river, bankfull flows and annual floods; and • interannually - larger floods that occur periodically, such as 1 in 5 years or 1 in 20 years.

Figure 6.1 shows a flow regime for a typical river in northern Victoria. From an ecological perspective, this flow regime can be broken up into a number of components, all of which have some ecological significance for the river, the riparian zone and the floodplain. These are outlined in Table 6.1. Figure 6.1 Typical daily flow series

6

4 10

5

3 10

2 10 4 3

1

Daily flow (ML/day) 10

3 0 10 2

1 -1 10 01 Jul 96 01 Jan 97 01 Jul 97 01 Jan 98 01 Jul 98 01 Jan 99 01 Jul 99 01 Jan 00

1 - cease to flow, 2 - low flow, 3 - freshes, 4 - base winter flows, 5 - bank full, 6 - overbank

56 Victorian River Health Strategy Table 6.1 Ecological significance of the major components of a typical river flow regime

NB: the ecological significance of flooding periodicities is indicative and is dependent on actual locations.

Flow Channel Flow Component Characteristics Timing Frequency Duration Features

Cease No surface flow Summer Annual Varies from Ecological disturbance to flow months to Dries habitats and days substrates

Low flow Minimum flow in Summer Annual Weeks to Connects inter-stream channel months habitats Continuous flow in some parts of channel

Freshes Flow greater than Summer Can be Generally days Biological triggers median flow for that Spring several in Input to habitats period each period

High flow Connects most in Autumn May be Days to weeks Inundation of instream channel habitats Winter several habitats Less than bankfull Spring annually Channel connectivity May include flow in Allows migration minor floodplain Inundation of organic channels matter Sediment movement

Bankfull High flow within Winter Generally at Days to weeks Channel and habitat channel capacity Spring least annually forming Flow in other channels Sediment movement (anabranches etc.)

Overbank Flow extends to Winter Can be annual Days Floodplain connectivity floodplain Spring or less Organic matter inputs Surface flows frequent

(Figure 6.1 and Table 6.1 adapted from NRE et al., 2001)

The harnessing of rivers to provide secure water supplies for towns and irrigation has had profound effects on the ecology of rivers, floodplains and estuaries. The introduction of dams and other regulating structures, of diversions from streams, of groundwater bores and of small catchment dams have impacted on the natural flow regime of our rivers. Furthermore, water resource development is not the only activity that can impact on river hydrology. Changes in land use within catchments, such as land clearing and urbanisation, have also modified the water regimes within our rivers. Table 6.2 outlines how the various water resource management operations can affect ecologically significant aspects of river flow regimes and the probable impacts on river health. In addition to these flow-related effects, water resource management structures may also have other ecological impacts, such as disturbing the longitudinal continuity of a river by creating barriers. These other effects are discussed in later chapters.

Victorian River Health Strategy 57 Table 6.2 Potential ecological effects of changed flow regimes due to water resource management operations 4 Ecologically Significant Water Resource Component of Flow Regime Probable Impacts on Management Operation that can be impacted Downstream River Health

Groundwater bores (depending on • reduction in summer baseflow in Loss of critical summer habitat volume extracted) rivers resulting in loss in biodiversity

SECTION 4 • decrease in water depth in wetlands

Catchment dams (depending on • reduction in summer baseflow As above plus: degree of development in catchment) • reduction in winter baseflow • loss of opportunities for movement •reduction in freshes between habitats • reduction in breeding cues

Specific Management Issues River diversions (depending on volume of water extracted) • summer • reduction in summer baseflows •loss of critical summer habitat • considerable reduction or increase resulting in loss in biodiversity in daily variability of summer • loss of opportunities for movement baseflows (depending on the between habitats pumping regime)

•winter • reduction in winter baseflow • loss of opportunities for movement •reduction in freshes between habitats • reduction in breeding cues

Small on-stream dams As above As above plus: • physical barrier to movement

Large regulating weirs (depending on As above plus: As above plus: their function) • reduction in winter baseflows • loss of breeding cues • general reduction in freshes • erosion of river banks and • loss of daily variability in baseflows deepening of river channel (this • change to the seasonality of flows may impact on the groundwater (e.g. increased summer flows for table) irrigation) • loss of bank habitat and species • rapid rise and fall of water levels • conditions may favour blue-green algae • loss of natural sediment transport • stillwater habitats may favour exotic species (e.g. Carp)

Diversion/irrigation channels • alteration to natural flow paths and • spread of exotic species patterns • transport of native species into irrigation areas – loss of biodiversity

58 Victorian River Health Strategy Ecologically Significant Water Resource Component of Flow Regime Probable Impacts on Management Operation that can be impacted Downstream River Health

Large dams (capacity < mean annual • reduction in frequency and As above plus: run-off)* duration of 1 in 2 year floods • loss of lower areas of floodplain • generally built to supply irrigation • increase in summer baseflows and wetland habitat and town water supply • decrease in cease-to-flow events • loss of breeding cues and • often run at high flows during the • reduction in winter baseflows opportunities with subsequent loss irrigation season • general reduction in freshes and of biodiversity flushes • loss of trigger flows may favour •loss of daily variability in both reproductive success of exotic summer and winter baseflows species (e.g. Carp) • increase in unseasonal summer • reduction in organic exchange flooding between floodplain and river resulting in reduction in ecological processing • changes in water temperature resulting in reduction of breeding of fauna • erosion of river banks and scouring of river beds • loss of bank habitat and species •changes in river bed with loss of instream habitat • loss of nutrients, sediments and organic matter downstream • reduction of organic debris and sediment input into floodplains and estuaries •changed frequency/duration of estuary closure

Very large dams As above plus: As above (capacity > mean annual run-off)* • reduction in frequency and • if built to supply irrigation and town duration of all categories of flood water supply events - generally releases at high flows during the irrigation season - may have a constant release pattern

* if run for hydroelectricity generation • may have greatly increased daily • bank slumping variability • bed scouring and deepening of river channel resulting in loss of habitats and species

Victorian River Health Strategy 59 Many rivers are showing a number of the impacts outlined in Table 6.2. Much of this is due to historical practices where rights to water extraction were granted with no understanding of the environmental effects. As these environmental 4 effects started to become apparent, there was a dawning realisation that not only are we are dealing with a finite and scarce resource, but that much of our resource use is dependent on the quality of the resource base; that is, our maintenance of our system of water use is dependent on the ecological health of the rivers. In the last fifteen years, this realisation has totally changed the way water is managed in Victoria. The emphasis has moved from exploitation to careful resource management with full recognition of the importance of the environment. The framework for water management was laid down in the Water Act 1989, which provides for: • protection of the environment through the provision of environmental flow regimes and related measures; SECTION 4 • consumptive entitlements to be clearly defined; and • water to be reallocated to its best use through the establishment of water markets. The challenge now is to manage a finite and scarce resource in an environmentally responsible way, balancing the needs of current and future users and the rivers themselves. In many cases, the environmental condition of rivers will need to be improved if they are to sustain current levels of use.

Specific Management Issues The focus for the future will be on: •much smarter operations; • vigorously pursuing opportunities for water savings and reuse; • the movement of water to more productive use through water markets; • combining environmental objectives with water supply objectives; • improving environmental flows in high priority rivers; and • continuous improvement in water resource management practices. The water allocation framework has been evolving rapidly in recent years to enable these objectives to be met. Section 6.2 describes the current Victorian water allocation arrangements incorporating a number of recent changes. Section 6.3 describes issues associated with water allocation and management that may impact on river health. These sections provide specific policy direction on how these issues should be dealt with within the water allocation process is provided.

6.2 THE VICTORIAN WATER ALLOCATION FRAMEWORK The Victorian water allocation framework is based on the understanding that water is a finite resource, and is designed to: • protect river health by providing water to sustain rivers, floodplains and associated wetlands and estuaries; • provide all users with entitlements to water that are explicit, exclusive, enforceable and tradeable; • enable water users to make informed choices about their use and management of water and to allow certainty for long-term planning; • protect social and cultural values; • provide clarity on the entitlements of all users in times of drought; • facilitate the movement of water to its highest value use; and • enable community input into decisions on water allocation.

60 Victorian River Health Strategy The framework is based on a hierarchy of legal entitlements to water, starting with the right of the Crown to control all groundwater and any water in a waterway. Below this, bulk entitlements (BEs) are established for both urban and rural water authorities. BEs for rural authorities cover the water rights held by irrigators in authority-supplied districts, plus the losses incurred by the authority in distributing the water. Finally, individuals taking water must have a licence issued by the Minister. Recent amendments to legislation mean that this now not only includes water taken from waterways or groundwater but also water harvested from the catchment for commercial purposes. These amendments complete the water allocation framework in Victoria by ensuring that all significant water use within a catchment is now included within the framework. Within the current water allocation framework, provisions for environmental flows are made under the Water Act through two mechanisms, either: • by placing conditions on the BEs or licences of other users which ensure an appropriate water regime for the environment; or • by providing a BE or licence for environmental purposes. The allocation framework is being implemented in the following types of water management systems: • regulated systems; • unregulated rivers; and • groundwater. The sections below describe the process and mechanism for water allocation in each of these water resource management systems, the type of entitlement provided to water users and how the environment is provided for in each system. A key principle in the implementation of the allocation framework has been the recognition of the existing rights of current water users. These sections also describe the other major features of the water allocation framework which enable reallocation amongst users and uses or which constrain allocations within currently acceptable limits.

6.2.1 Bulk Entitlements in Regulated Rivers Regulated systems are those where the flow of the river is regulated through the operation of large dams or weirs. The types of environmental impacts that may occur within regulated systems are shown in Table 6.2. In regulated systems, BEs are issued to rural and urban water authorities, and in some cases for the environment. A BE defines the volume of water that an authority may take from a river or storage, the rate at which it may be taken and the reliability of the entitlement. Water for the environment is generally provided by placing conditions on the BE of a consumptive user, for example by requiring a water authority to release a particular environmental flow regime from a storage. In addition, it is possible for a BE to be provided for the environment. This is generally done when allocations are required for wetland watering which need some flexibility of use. Currently, Victoria is converting previously poorly-defined rights to BEs. In the conversion of these previously held rights, the operation of the system is reviewed in a negotiation process between environmental managers, irrigators, water authorities and other groups, with the aim of improving the environmental flow regime where possible. Whilst a BE conversion process is primarily aimed at clarifying the rights of existing users, in 82% of these negotiations some improvements to environmental flow regimes have been achieved.

Victorian River Health Strategy 61 6.2.2 Unregulated Systems Unregulated systems are those that do not have large structures which provide water for extractive uses. In these 4 systems, BEs are issued to water authorities that divert directly from rivers. In addition, there are a large number of private diverters who are licensed to extract water by pumping directly from rivers. The types of environmental impacts that can occur as a result of these diversions are shown in Table 6.2. Currently, the majority of this water is taken during the summer months, often causing ecological stress through major loss of habitat and poor water quality. Management of unregulated systems is based on three factors: • recognition of the ecological stress caused by diversions, particularly by existing summer diversions;

SECTION 4 • recognition of the need for reliability of supply for consumptive use; and • the need for a risk-based approach to management of diversions where the level of management effort increases with the level of environmental risk. Because of the ecological stress caused by summer diversions, for the past 15 years new summer diversion licences have generally not been issued. The risk-based management approach classifies streams into three management priority categories based on:

Specific Management Issues • environmental/ecological values that need to be protected or enhanced; • the amount of water authorised to be taken and the amount of water used in the area; • the history of management difficulty in terms of water shortages; • the likelihood of further demand for water; • the need to protect downstream entitlements; and • the Permissible Annual Volume (the volume of entitlements that can be safely diverted) for the area. Streams with a high environmental value and a high level of risk will be given the highest level of management effort – the development of a community-based Streamflow Management Plan (SFMP). Streams where either the level of risk or the values are not as high will be categorised as medium. These streams are intended to eventually be managed using a SFMP but are currently a lower priority for SFMP development. In the interim, they will be managed by statewide management rules directed at relieving summer ecological stress, utilising trading to improve environmental flow regimes, managing winter diversions within a sustainable limit and collecting data on water use to input to the eventual SFMP process. Streams where the level of risk is clearly low will also be subject to statewide rules for management which protect their current values and which therefore address issues including the protection of summer flows and freshes, managing winter diversions within a sustainable limit, and trading. This approach is summarised in Table 6.3 and will be phased in by December 2002.

62 Victorian River Health Strategy Table 6.3 Management of unregulated rivers in Victoria

Management Category Priority Management Activities

1 High Streamflow Management Plan During SFMP development where there is a declared Water Supply Protection Area under the Water Act 1989, no further licences will be allowed until the completion of the SFMP and then licences will only be granted in accordance with SFMP provisions.

2 Medium Will have an SFMP in time In the interim, will be managed in accordance with Statewide Rules covering: • no further licences issued for summer diversion • summer rostering rules to protect summer flows • introduction of metering to provide data on water usage - refer Note no. 1 • granting of new winter licences up to the SDL - refer Note no. 2 • trading - of summer licences downstream only in the Murray-Darling Basin and elsewhere unless specific impact assessment establishes otherwise reduction of 20% of entitlement on trade (only in Murray-Darling Basin) of winter licences within the SDL • monitoring • compliance

3 Low Will be managed in accordance with Statewide Rules covering: • no further licences issued for summer diversion • summer rostering rules to protect summer flows • introduction of metering to provide data on water usage - refer Note no. 1 • granting of new winter licences up to the SDL - refer Note no. 2 • trading - of summer licences downstream only in the Murray-Darling Basin and elsewhere unless specific impact assessment establishes otherwise - reduction of 20% of entitlement on trade (only in Murray-Darling Basin) - of winter licences only within the SDL • monitoring • compliance

Notes: 1. The introduction of metering in Category 2 and 3 catchments will be in accordance with programs agreed between Licensing Authorities and Government. 2. This is subject to the completion of implementation programs for SDLs agreed between Licensing Authorities and Government.

Victorian River Health Strategy 63 There are two key components to the risk-based approach outlined in Table 6.3: • winter Sustainable Diversion Limits (SDLs); and 4 • community-based SFMPs. Winter Sustainable Diversion Limits are being developed for catchments and subcatchments for the winter months. The SDL will specify, for each catchment and subcatchment, a limit for winter diversions and an allowable rate of extraction. The specification of SDLs is based on an analysis of the hydrology of the system and will be a conservative estimate of how much water can be extracted from these systems during winter with minimum environmental impact. Streamflow Management Plans are developed in consultation with the community. The regional planning process

SECTION 4 described in Chapter 5 shows how SFMPs and BEs are integrated into the larger context of regional river health planning. SFMPs take account of the environmental, social, cultural and economic assets associated with a river. The objective of a SFMP is to establish a water-sharing plan for the management of diversions on an unregulated river that will provide water users with agreed levels of security under various climatic conditions, and provide the environmental flow regime required to maintain an ecologically healthy river and protect the environmental assets. In developing these plans, it is recognised that in a number of streams, the level of existing diversions particularly in

Specific Management Issues summer may not enable the environmental flow requirements to be met immediately. However, there is a requirement that the environmental flow regime will be improved over the planning period with the aim of ultimately providing the agreed environmental flow regime. A Streamflow Management Plan includes: • immediate negotiated environmental flow provisions; • flow-sharing rules for a range of climatic conditions; • trading rules; • provisions to improve the environmental flow regime over time, where necessary to meet the environmental flow requirements; • rules covering the granting of any new licences; • roles and responsibilities; • cost-sharing; and • provisions for monitoring, compliance and plan review. The detailed policy principles and management arrangements for the development of SFMPs are outlined in the Stream Flow Management Plan Framework (NRE 2002). This framework includes an audit and review process which establishes an Independent Technical Review Panel to review the environmental flow and hydrological assessments, and predictions of impacts and risks.

6.2.3 Groundwater Management Groundwater extraction has the potential to affect baseflows in rivers and water depth in wetlands. Groundwater is allocated via groundwater licences. Similar to the management of unregulated rivers, Victoria’s groundwater resources are managed using a risk-based approach. As a first step, the sustainable yield of the aquifers in the 64 groundwater management areas in the State has been quantified, as has the volume of groundwater allocated to users. Within these areas, a Permissible Annual Volume (PAV) has been set to reflect the sustainable yield of the aquifer. This is a ‘first cut’ estimate which has taken into account the need to maintain river baseflows but is limited by the available information. When resource commitments reach 70% of the PAV, the second stage is triggered. This involves the establishment of a Groundwater Supply Protection Area, increased monitoring and the development of a community-based Groundwater Management Plan for the management of the resource.

64 Victorian River Health Strategy Groundwater Management Plans (GMPs) are developed by consultative committees, comprising landholders, resource management agencies, environmental management agencies and environmental interest groups. They: • establish rules for the allocation of groundwater, including the ability to transfer water between landholders; • establish arrangements for metering and monitoring; • make provision for more intensive studies into resource availability; • identify the extent of groundwater usage and provide opportunities for additional usage where the resource is available; and • provide more certainty to existing users thereby enabling long-term planning. A key principle behind this approach is the investment in better information as the resource utilisation increases. First estimates of groundwater PAVs use the best available data, but are quite imprecise. As resource utilisation gets close to these first-cut assessments, further data collection takes place, refining these estimates of PAVs for use in the detailed community-based GMPs.

6.2.4 Stressed Rivers Where provisions in BEs and the immediate negotiated environmental flows in SFMPs do not meet environmental needs, these rivers are considered within the water allocation framework to be stressed. The management provisions for stressed rivers are outlined later in this chapter.

6.2.5 The Water Market The Water Act provides for the trading of entitlements as a mechanism for facilitating the movement of water to its highest value use. The establishment of the water market in northern Victoria has been very successful in enabling more efficient water use. Trades of irrigator entitlements, licences and BEs are permitted to occur on either a temporary or a permanent basis. Environmental allocations may be traded on a temporary basis. The Government recently announced the establishment of a new statewide water exchange, Watermove, to facilitate trading of water licences across Victoria. Watermove will be in place for the 2002-03 irrigation season.

6.2.6 Sustainable Catchment Limits A sustainable catchment limit restricts the amount of water that can be extracted from a system. Placing sustainable catchment limits on diversions within systems protects the security of existing consumptive users and protects environmental flows. The concept of a sustainable catchment limit, whilst restricting the amount of water able to be diverted from a system, need not limit new or further development occurring within the catchment. Such developments can continue to occur through the water market.

The MDB Cap Victoria is a member of the Murray-Darling Basin Ministerial Council, which in 1994 instituted a cap on all diversions within the Murray-Darling Basin. This means that there will be no increase in diversions over the amount that was being diverted at the 1993-94 level of development. Defining the cap in terms of the 1993-94 level of development enables annual variations in diversions caused by climatic variability to be taken in to account. The MDB Cap was put in place because over two-thirds of the flow in the Murray is diverted and the river is in poor environmental condition. Victoria is committed to implementing the MDB Cap.

Victorian River Health Strategy 65 Implementation of sustainable catchment limits Implementation of the MDB Cap is an over-riding consideration in the north of the State and is implemented through 4 the BE, SFMP and SDL processes and trading rules in this area. Over time, sustainable catchment limits will also be required for both surface and groundwater in southern Victoria as diversions reach sustainable limits. Limits have already been put in place in some groundwater systems. By 2005, sustainable catchment limits will be put in place for all catchments and aquifers.

6.2.7 Targets for the Implementation of the Victorian Water Allocation Framework

SECTION 4 The following are the statewide targets for the implementation of the Victorian water allocation framework.

•Winter SDLs will be in place in all catchments by December 2002. • Statewide water market will be in operation for the 2002-03 irrigation season. • All BE conversions on major water supply systems will be completed by 2003. • 16 GMPs will be completed by 2003. • 33 SFMPs will be completed in priority areas by 2004. Specific Management Issues • Sustainable catchment limits will be in place by 2005. • 100% compliance with the MDB Cap.

6.3 RIVER HEALTH ISSUES ASSOCIATED WITH WATER ALLOCATION The Victorian water allocation framework is based on property rights and a water market, and is aimed at properly managing a finite and scarce resource for which there are many competing uses. The entire framework is premised on healthy rivers. Should the health of the water resource decline, the entire system is put at risk. Victoria recognises that it is in the interest of all sectors of the community to ensure that our use of the resource is sustainable in the long term. A number of issues arise in the implementation of the water allocation and management framework that relate to river health and the sustainability of water resource management. The major environmental issues include: • defining an environmental flow; • providing and managing water for the environment; • restoring stressed river systems where the existing levels of extraction are causing environmental damage; • protecting river systems by: - enabling new development to occur in an ecologically sustainable way, - integrating surface water and groundwater management and catchment impacts, and - dealing with uncertainty in water resource management; and • defining the roles of water supply and management authorities. These issues are discussed below. Policy direction is provided on how these issues will be dealt with within community decision-making frameworks for water allocation and waterway health.

6.3.1 Defining an Environmental Flow One of the key information inputs into a BE conversion process or a SFMP process is an understanding of the environmental flow requirements of a particular river system. This involves an environmental flow assessment.

66 Victorian River Health Strategy The science of environmental flow assessment is one that has evolved very rapidly over the past five years. Over this time, the significance of the various aspects of the flow regime for components of the river ecosystem has been recognised, although our understanding of these relationships is still developing (see Box 6.1). In addition, it is understood that there is no magic number for ensuring that riverine ecosystems are sustained. Any extraction of water puts the river system at some risk. The more water abstracted, the higher the risk of environmental damage. Given this, the following principle has been adopted as a precaution to assist with the assessment of environmental water requirements.

An environmental flow regime should retain and/or reinstate as many of the features of the natural flow regime as possible.

An environmental flow assessment will: • be based on the best available science; • be aimed at identifying a flow regime that will, at a low level of risk: - maintain the ecological assets of a river, including those associated with linked floodplains and downstream estuaries and/or terminal lakes, and - maintain the river in ecologically healthy condition; •include specific recommendations addressing those parts of the hydrograph likely to be affected by water allocation; and • include specific recommendations protecting those aspects of the hydrograph that are not likely to be affected by water allocation.

To ensure a consistent approach to the assessment of environmental flow requirements, the Department of Natural Resources and Environment will update the statewide methodology for the assessment of environmental flow requirements for use in BE conversions, SFMPs and other water allocation processes by August 2002.

This work will ensure that communities making decisions on environmental flows and water allocation should have access to the best available scientific information on the environmental requirements of their river system. However, in undertaking BE and SFMP processes, all stakeholders negotiate to arrive at an agreed water sharing arrangement. This process needs to consider all the environmental risks and consequences of not providing the recommended environmental flow.

6.3.2 Providing and Managing Water for the Environment

Providing water for the environment Actual environmental water provisions are made as a result of the BE and SFMP processes. During these processes, the recommendations of the environmental flow assessments are considered together with the needs of existing users and an environmental flow provision is negotiated. In many cases, the negotiated environmental water provisions are less than those recommended by the environmental flow assessment as a result of the trade-offs made between the economic, social and environmental requirements of the systems.

Victorian River Health Strategy 67 Currently, these negotiated environmental water provisions are provided through conditions on other users, either through SDLs or SFMPs or by conditions on BEs. Whilst the Water Act enables the provision of a BE for the 4 Environment, this has currently only been used where flexibility of use for wetland watering has been required. At present, there is one specific BE for the Environment — for the Murray wetlands. Now that these arrangements have been in place for some time, it is timely to review whether this method of providing water for the environment through conditions on other users provides an adequate level of protection, security and status for the environment’s share of the resource compared with other users. Other options that need to be considered include: • in fully allocated systems, providing a BE for the Environment for the residual water, with a process to deal with SECTION 4 priority stressed rivers; • providing a BE for the Environment for all unallocated water with a process for granting new consumptive entitlements in systems which are not fully or over-allocated; and • providing BEs for the Environment in systems of high environmental value. There are considerable implications for each of the options outlined above and these need to be fully considered by the community. The Department of Natural Resources and Environment (NRE) will develop a Discussion Paper on Specific Management Issues ‘Options for Providing Bulk Entitlements for the Environment’. This will also review the management arrangements including any costs for BEs for the Environment. It will also consider opportunities for third parties to make their water allocations available for environmental use on either a temporary or permanent basis.

NRE will develop a Discussion Paper on ‘Options for Providing Bulk Entitlements for the Environment’ by December 2002 for public comment.

Managing environmental water provisions The current arrangements for the management of negotiated environmental water provisions are: • Where water for the environment is provided through conditions on other users, those users are responsible for providing this water and must report on an annual basis on their management of their BE or SFMP. • Where water for the environment is provided through a BE for the Environment, responsibility for its management is held by the Executive Director, Parks, Flora and Fauna Division (NRE). There are a number of policy principles which govern its management. These are outlined in Box 6.2. As for other BE holders, the Executive Director, Parks, Flora and Fauna reports on the management of each BE on an annual basis. It is important to ensure that negotiated environmental flow regimes are being provided and managed in the most effective way to achieve their agreed objectives.

NRE will develop a ‘Best Management Practice’ framework for the management of negotiated environmental water provisions by June 2003.

68 Victorian River Health Strategy Box 6.2 Current Arrangements for the Management of Existing BEs for the Environment

• The purpose of the water is identified in the BE. • The BE is used in conjunction with a watering schedule which will nominate all possible wetland or river areas that can be watered using the BE and the conditions for each under which the allocation would be used. The schedule is based on trying to reinstate as much of the natural wetting/drying cycles of the individual wetlands as possible. • Where the water is provided as an annual allocation which cannot be stored and there is no environmental need for all or part of it in a particular year due to climatic conditions, it is possible to sell all or part of the allocation on the temporary water market, provided that: - all possible options for use of the water for environmental purposes have been examined, - appropriate consultation with other water users and interested community groups has been undertaken, and - funds from the sale are used for projects across the State aimed at: improving the effectiveness of environmental flow regimes, providing or improving environmental flows, and increasing knowledge of environmental flow regimes. • The Executive Director, Parks, Flora and Fauna, consults with the relevant CMAs on use of the allocation.

6.3.3 Restoring Flow-Stressed River Systems A key part of the BE conversion process and SFMP development has been the recognition of the existing rights of water users. These processes have clarified existing rights and have, in general, provided improvements in the environmental flow regimes. However, there are a number of river reaches where the water provided for the environment under these processes may not be enough to maintain an ecologically healthy river and protect environmental assets. Where negotiated environmental flow provisions do not meet environmental flow requirements, it is likely that significant environmental damage either has occurred or is occurring and the river will be considered to be flow-stressed. The further away the negotiated flow regime is from the scientific environmental flow recommendations, the higher the risk and severity of environmental damage. Improvements in river flow regimes of these stressed rivers, or actions to ameliorate flow stress, will, depending on the level of improvement: • reduce the rate/risk of further environmental damage; • safeguard current environmental values; • restore significant ecological features of the river; and • restore ecological health. The aim for these flow stressed rivers is to achieve an ecologically healthy river over time. The process to achieve this aim has two parts. The first part will apply to all flow-stressed rivers and is different for regulated and unregulated rivers. The second component, the development of a Stressed River Proposal, will be available for rivers of high value. This process is described below.

Victorian River Health Strategy 69 Part 1 for unregulated rivers As stated in section 6.2.2, unregulated rivers where there are high levels of flow stress are a priority for developing 4 SFMPs. A principle of the SFMP process is that environmental flows provided through the plan must be sufficient to sustain agreed ecological values and be consistent with statewide requirements (see the Stream Flow Management Plan Framework). However, if achieving the environmental flow recommendations is likely to have significant impacts on existing users, then the measures required to meet these flow specifications will be phased in over some period of time proposed by the SFMP.

SECTION 4 SFMPs will aim to achieve, over time, the recommended environmental flow regimes as outlined in the Stream Flow Management Plan Framework.

Part 1 for regulated rivers Many stressed reaches occur within regulated systems, downstream of dams and/or as parts of irrigation systems. Often the reduction in flow in reaches downstream of a dam has turned these rivers into streams of a much smaller

Specific Management Issues size. In many cases, because of the economic and social value of the agricultural industries and towns dependent on them, it will not be possible to return them to anything approaching their natural environmental condition. But it may be possible to reduce the rate of their decline, to improve their environmental condition and, in a number of these cases, to achieve ecologically healthy rivers, albeit of a smaller size or different river type or, in a few cases, different ecosystem type. This can be done by improving their current environmental condition with some changes to their hydrology and/or with improvements to their riparian and instream environments.

Water authorities, as part of their duty of care, will ensure that in stressed river reaches in regulated systems: •a review of the operation of that water management system will be undertaken to see if changes can be made to improve the environmental flow regime without impact on other users; and •a demand management program will be developed and implemented.

Government will: • ensure that no further diversions will be allowed; • consider whether any unallocated water in storages can be used to improve the environmental condition of these reaches before a decision is made on new abstractions; and • ensure, where possible, that trading rules facilitate an improvement of the environmental flow regime.

Part 2 - stressed river proposals In some cases, the process outlined above may not be enough to restore ecological health, or the time predicted to do so may be considered too long. In these cases, the relevant CMA and water authorities may develop a Stressed River Proposal with their communities to achieve further environmental improvement in rivers identified to be of high priority in the regional RHS.

70 Victorian River Health Strategy These proposals will be developed by CMAs and the relevant water authority with their communities as an outcome of their BE and SFMP processes, and will build on or aim to accelerate the improvements already negotiated through these processes. These proposals will identify the environmental flow improvements required, proposals for how these could be best achieved, any complementary habitat restoration activities and cost sharing. Proposals may include mechanisms for water savings, water reuse, supply rationalisation, changes to system or on-farm operations, or use of the market. They may have multiple benefits, such as salinity or industry efficiency benefits. These proposals will be considered by Government on the basis of: • the level of regional commitment; • the environmental and community value of the river; • the overall benefits to the broader community; • the level of environmental improvement predicted; and • complementarity with the objectives of joint State/Commonwealth funding initiatives, such as the National Action Plan for Salinity and Water Quality and the National Heritage Trust Mark II.

Principles for restoring flow-stressed rivers: • The aim will be to achieve flows that ultimately sustain an ecologically healthy river and protect environmental assets. •Water authorities and individuals have a duty of care for the environment and will be expected to contribute to improving flow regimes in a way that is consistent with that duty of care. • Where further effort is required to achieve an ecologically healthy river and protect environmental assets or to accelerate the achievement of this objective in rivers identified as high priority within a regional RHS, CMAs together with the relevant water authority and the community will develop a Stressed River Proposal which will identify: - the environmental flow improvements required and how these will be achieved; - complementary habitat restoration activities; - the level of regional commitment; - the overall benefits to the broader community; - the level of environmental improvement predicted; and - complementary funding.

Government will consider Stressed River Proposals and may: • consider these rivers as a priority for joint Commonwealth/State funding programs; and • co-invest with the region on behalf of the broader community in rivers of high environmental and/or community value.

This approach will align and build on the work undertaken in the existing water allocation and regional river health planning processes to achieve ongoing improvement across the State in rivers that are of the highest value to the community.

Victorian River Health Strategy 71 Two special cases – the Snowy and Murray rivers There are two special cases which, because of the importance of these rivers to all Victorians, will be funded outside 4 the process outlined above. These are: • The Snowy River. The Snowy River is an Australian icon. However, it has been degraded over the last 50 years as a result of the Snowy Mountains Hydro-electric Scheme which diverts much of its flow to supply irrigation and hydroelectricity. The Victorian, New South Wales and Commonwealth Governments will restore this river with a combination of flow improvements generated by water saving projects and habitat improvements. The three governments have agreed to provide $375 million over 10 years to achieve this and to improve the River Murray. This

SECTION 4 project will be the biggest river restoration project ever undertaken in Australia and will be one of the biggest in the world. It will be undertaken in a way that maximises information for other river restoration projects around Australia. It will not only restore the Snowy River but will provide great increases in our knowledge base on river restoration. • The River Murray. Roughly two-thirds of the flow in the River Murray is now diverted, with the result that the mean annual flow from the Murray to the sea can be as low as 35% of the natural flows. The MDB Ministerial Council is developing a River Restoration Strategy for the Murray which will build on the existing Cap on diversions.

Specific Management Issues Victoria is committed to implementing the Cap and will work with the other States to put in place an environmental flow regime in both the Murray and its Victorian tributaries that will improve the environmental condition of the Murray. In addition to the funds referred to above to rehabilitate the Snowy and Murray Rivers, Victoria has committed a further $15 million to this work, in partnership with South Australia.

6.3.4 Protecting Rivers Whilst Enabling New Development The future prosperity of regional and rural Victoria depends on sustaining existing effective development and bringing new investment to these areas. However, we need to ensure that any new development is undertaken in an ecologically sustainable manner. New development can occur through two major mechanisms: • improved use of existing allocations, either by: - acquiring water through trading of existing allocations on the water market; or - utilisation of water resulting from improvements in the efficiency of water use either: on-farm, in water supply systems, or through water conservation programs and water reuse; and • new allocations. The environmental issues associated with these mechanisms are quite different. These and the necessary environmental safeguards are discussed below.

72 Victorian River Health Strategy Improved use of existing allocations – trading and the water market The water market has been established to allow the movement of water from low value uses to high value uses. From an environmental perspective, it has the benefit of ensuring that existing consumptive allocations are utilised in the most efficient way possible and enabling increased economic returns without further water allocation. The Victorian Government has recently announced the establishment of a new statewide water exchange to facilitate trading of water licences across Victoria compared to the present regional approach through water authorities. It will be called ‘Watermove’ and will enable trade in all regulated supply systems across Victoria and will include the permanent sale of water licences between landholders, as well as temporary trades. Trade in water licences on unregulated streams and groundwater licences will be possible through the exchange. However, it is important to ensure that the redistribution of water use occurring through the water market does not have an adverse impact on the environment. In fact, careful construction of the rules governing water markets can achieve improvements in environmental conditions. However, in developing these rules, the question of scale must be considered. As the pattern of water use is changed due to trading, there may be small local changes in environmental condition. Rather than cease trading in these areas, consideration needs to be given to whether there is an overall environmental benefit resulting from the trade; that is, whether where the water is moving to is actually providing significant environmental benefits.

The Government and authorities responsible for the operation of water markets will make sure that the rules governing water markets are developed: • to drive the movement towards more efficient water use; and • to give positive environmental flow outcomes wherever possible. In addition, they should ensure that there is no adverse impact on local ecological values unless there is an overall net ecological benefit.

Improved use of existing allocations – water use efficiency gains There is significant room for improvement in the efficiency of water use in both urban and rural areas. Water can be saved by on-farm efficiencies and in improved management of water supply systems in rural areas, and by water conservation programs and water recycling in urban areas. Water saved through these efficiency gains can be used to expand agricultural production and safeguard and/or improve environmental flow regimes. In rural areas, on-farm water savings funded by landholders themselves are to be encouraged as they increase the economic returns of water used without increasing extractions or impacting further on river health. Improved management of water supply systems offers major opportunities for water savings which can be used for a variety of purposes including improving environmental water provisions. For example, the increase in environmental flows for the Snowy River will be largely provided through investment in water efficiency projects. Investment in the Wimmera-Mallee pipeline will provide 93 000 ML in water savings to be used to improve environmental flow regimes and for new developments. However, whilst there are some real gains to be made in water savings in water management systems, there may be some risks to the environment in implementation. For example, leaky systems may be providing water that is having environmental benefits (i.e. a de facto environmental flow) and fixing such leaks can have local impacts, as transmission losses may, in fact, be contributing to essential recharge to adjacent groundwater or wetland systems.

Victorian River Health Strategy 73 In implementing any water savings projects, the following principles must be followed: • environmental impacts will be positive, where possible, or must be at least neutral; 4 • supplies to existing users must not be affected; and • water savings will be shared equitably in proportion to funding contributions.

The Government is directly promoting more efficient water use. In September 2000, the Minister for Environment and Conservation announced a $30 million ‘Water for Growth’ initiative, to unlock the potential of Victoria’s water resources through smarter irrigation and reuse systems. SECTION 4 The initiative includes a program offering grants to farmers for innovative, water-use efficiency projects, and to authorities or private companies to facilitate regional, water infrastructure efficiency projects. The environmental gains coming out of these proposals, including improvements to river flows and to water quality through nutrient and salinity management, are considered in the grants process.

Where government funds are used to implement water savings projects (both on-farm and within system) the Specific Management Issues project outcomes will include improvements to river health and environmental flows.

The Government has also encouraged urban communities to use water more efficiently by implementing a statewide water conservation education program, ensuring that urban water authorities are implementing water conservation plans and promoting water recycling. This focus on water conservation and reuse will be strengthened in the future, providing further environmental protection.

A Victorian Water Recycling Strategy will be completed in 2003.

Water conservation targets will be established by all rural and urban water authorities within their conservation plans.

A Water Resources Strategy for the Melbourne area will be completed by December 2002.

New allocations The granting of any new entitlements occurs within the general framework of the Water Act. However, it must be recognised that the granting of any new consumptive allocations will take further water away from the environment. (It should be noted that ‘new’ in this context means ‘additional’ and does not apply to new entitlements which have to be generated as part of the administration of the water market as entitlements are traded.)

As a general rule, new allocations will only be made on the basis that natural ecological processes, habitats and biodiversity are sustained; that is, that the environmental water requirements of the system are met.

In accordance with this policy, granting of new diversion licences will only occur when allowed for under the catchment SDL or within an SFMP.

74 Victorian River Health Strategy The granting of new BEs is governed by the Water Act, which states that approval for a new BE can only be given after consideration of matters that are listed in section 40, notably: • existing and projected water availability and water quality; • any adverse effect that use of water is likely to have on: - existing authorised uses of water, -a waterway or aquifer, and - the environment; • the need to protect the environment, including riverine and riparian; and • the Government’s conservation policy and its policies on water resources. It is anticipated that any proposals for new BEs will generally be either for a new urban water supply system or for augmentation of an existing system. Any proposal for a new BE is required to undertake a full environmental assessment including a detailed study of environmental water requirements, according to guidelines currently being developed by NRE. These assessments are required as an integral part of a proposal and consequently will be paid for by the proponent. It is expected that in developing a proposal for a new BE, a water authority will have firstly examined all options for meeting future water demand which do not require new water. These include: • efficient utilisation of existing water diversions; • water reuse; • water demand management strategies; • water trading; and • adopting an integrated urban water cycle management approach as demonstrated by: - on-site water cycle management, - water product differentiation (matching the quality of the product requirements), and - ‘catchment-to-tap’ and ‘toilet-to-environment’ management strategies. Where the need for a new allocation is unavoidable, water authorities should then examine options including: • expansion of existing systems, including drainage and effluent management; and • use of groundwater; prior to the investigation of a new source of surface water. A proposal for a new BE will include an outline of the costs and benefits, including environmental costs and benefits, of all options that have been examined. As a general rule, the Government will only approve new BEs where they fully meet the environmental water requirements of the system including any downstream ecosystems, address existing environmental flow issues within the system and do not impact on other authorised users. It is acknowledged that, in a few cases, the choice might have to be made between augmentation of an existing site causing further environmental stress or impounding a river currently in pristine condition. In these cases, the decision should be made after a full community consultation process as required under the Water Act and the Environmental Effects Act 1978. Should the decision be made to further stress a river, then options for river restoration elsewhere must be considered as part of the evaluation process undertaken by the authority to ensure that there is no net loss of environmental values.

Victorian River Health Strategy 75 NRE will develop a set of detailed guidelines for the application of new BEs which outline: • the requirements for assessments of environmental flow regimes and general environmental impacts; 4 • the requirements for assessments of water resource availability; • the obligations of water authorities; and • links with other planning process.

NRE will develop ‘Guidelines for New Bulk Entitlements’ by June 2003.

SECTION 4 6.3.5 Protecting River Health by Integration within the Water Resource Management Framework Existing water allocations and environmental flow provisions can be put at risk by changes in the hydrology of the system due to other land and water use within the catchment. Examples of where this can occur include: • where there are major changes in land use within the catchment; and • where the management of surface water and groundwater are not properly integrated.

Land use change Specific Management Issues Broad-scale catchment management is a critical factor in controlling catchment hydrology. Clearance of native vegetation and urbanisation in many catchments have greatly modified runoff patterns, with consequent impacts on the hydrology of our river systems. A change in hydrology can also occur when broad-scale reafforestation occurs on cleared land. The trend for increased pine and eucalypt forestry, in some cases as part of salinity control or achieving ‘carbon credits’ for ‘greenhouse effect’ control purposes, may modify the rate of hydrologic changes in the Australian landscape. For example, based on information provided in Bradford et al (2001), if there were to be a 200 000 ha increase in plantation areas in the north-east of Victoria (an approximate trebling of the existing area), and it was assumed that these plantations were to be situated in areas having an average annual rainfall of 800 mm, then run-off into the River Murray could be reduced by around 260 GL per annum, which is about 16% of all the water used by Victoria from the Murray. If such a change were to occur there could be major impacts on both existing users and environmental flows. However, such an increase is currently considered unlikely. A more realistic estimate would be a 50% increase in plantation extent to approximately 100 000 hectares.

Where large-scale land use changes are planned, the approvals processes will be developed/amended to take into account the likely impact on existing water resource users and the environment.

NRE will work with the Department of Infrastructure, CMAs, local government and other appropriate groups to explore mechanisms to implement this principle, taking into consideration national principles and guidelines currently under development.

Surface water – groundwater interactions Studies indicate that up to 50% of the base-load of streams can be fed by groundwater. The actual situation varies. In some cases, the link is very strong and there can be an instantaneous impact on river flows from groundwater pumping. In others, the reverse is true, and streams contribute significantly to the recharge of groundwater. Wherever there is a strong linkage between groundwater and surface water, the linkages need to be recognised in the planning processes. Otherwise, the allocations to existing users and the environment may be impacted in an unplanned way.

76 Victorian River Health Strategy When a high level of interaction between surface water and groundwater is likely: • the relevant planning processes for SFMPs, GMPs and BEs will be undertaken in a way that provides the appropriate linkages; and • the intent will be to develop in the future, a single integrated cap at the local scale covering both surface water and groundwater use.

6.3.6 Protecting Rivers against Uncertainty Currently, environmental flow regimes provided through the SFMP or the BE processes can be affected by uncertainty in two ways: • Our current knowledge of the ecological importance of flow regime is imperfect and therefore our best estimates of the flow regimes required to maintain ecologically healthy rivers may be incorrect. For example, the first BE to be developed was the BE for the Goulburn system which was approved in 1995. The environmental flow negotiated at that time included minimum passing flows and a flushing component based on the science available at the time. Current evidence suggests the water provided to the environment for river flushing flows under this BE could be better utilised for other environmental purposes. • There is uncertainty in the external environment due to climate change. Current climate change predictions suggest that available water resources will be reduced. The effect of reduced resources may fall disproportionately on the environment, depending on how the environmental flow regimes are specified. Both these considerations point to the need to be adaptable. In the face of such potential changes, and indeed because of our increasing knowledge about the ecology of rivers and the pressures they are under, it seems clear that the community will need to be able to reassess provisions made for environmental purposes. It will be important to keep monitoring environmental conditions to assess whether our objective of ecologically healthy rivers is being achieved. Monitoring is discussed further in Chapter 13. However, a mechanism is required to allow reassessment to occur where required. The Stream Flow Management Plan Framework requires that all SFMPs be reviewed at least every five years. Currently, only some BEs include review provisions.

Commencing not later than 2003 when the BE conversion process will be completed, the environmental water provisions of BEs of all major water supply systems will be progressively reviewed taking into account whether: • the expected environmental outcomes from the water are provided by the agreed flow regime; and • the delivery should be changed in response to any new information that indicates the potential for achieving a better environmental outcome with the water.

6.3.7 Roles of Water Authorities Whilst the institutional arrangements and the roles and responsibilities for the management of river health are discussed in Chapter 11, it is clear tha t both rural and urban water authorities have a very significant role in the management of river health, particularly as it relates to environmental flow regimes. The way these authorities manage their businesses, deal with their customers and plan for the future has the potential to have a major impact on the health of our rivers, both positive and negative. Government regards water authorities as having a key role and interest in achieving sustainable management of water resources, given their dependence on the resource and their potential impact.

Victorian River Health Strategy 77 By December 2002, Government will review and make explicit the obligations of water authorities with regard to: 4 • sustainable management of natural resources and regional economic development; • sustainable water resource management; • integrated catchment management; • biodiversity conservation; • water conservation; • triple bottom line reporting;

SECTION 4 • good environmental practice and corporate citizenship; and • reporting and accountability. Pending these reviews, rural and urban water authorities will: • manage water abstractions within entitlements; • minimise any detrimental impacts of their business operations on river health wherever possible; and • ensure that building new assets and asset renewal is undertaken to the current best practice

Specific Management Issues environmental standards.

78 Victorian River Health Strategy 7. Management of Water Quality

7.1 IMPORTANCE OF WATER QUALITY Deterioration of water quality is a major threat to Victorian waterbodies, including rivers, wetlands and lakes, causing serious social, economic and environmental problems. It is important to maintain good quality water to protect agriculture, industry and environmental systems, and for human consumption. Poor water quality poses threats to: • human and livestock health; • the health of waterways; • water supplies, resulting in high costs to ensure the provision of safe water; • preservation of the quality of water resources for future generations; • biodiversity; • ‘Clean and Green’ agriculture and regional economic development; and • recreation in and alongside waterbodies, including losses in tourist revenue. Deterioration of water quality can significantly impact water dependant ecosystems. Key threats to riverine ecosystems from poor water quality include rising salinity, increasing sediment and nutrient loads, changing pH and temperature levels, and reduced dissolved oxygen. The ecological risk of poor water quality is outlined in Table 7.1.

Table 7.1 Examples of likely ecological impacts of poor water quality

Water Quality Issue Ecological Impact Systems Most at Risk

High salinity • can have significant impacts on freshwater • wetlands are especially susceptible to levels ecosystems by causing lethal and sub-lethal increased salinity effects on a wide range of flora and fauna • many of the Victorian catchment salinity • discharge of saline groundwater and associated management plans identify wetlands and waterlogging of floodplains and wetlands floodplain depressions as areas at high risk of salinisation over the next 10-50 years.

Alterations to the • systems that were formerly fresh/brackish have • freshwater wetlands that receive saline relative been altered to ones that are estuarine/marine drainage waters contributions of • significant impacts on salinity regimes, as well • alterations to oceanic and riverine flows in fresh and saline as siltation events with consequent ecological estuaries and lower river reaches, for waters effects, particularly on fish migration and example Gippsland Lakes breeding cycles

High levels of • can greatly increase the likelihood of algal • lowland rivers nutrients blooms in an aquatic system • water storages and weirs • species composition of aquatic flora and fauna • natural lake systems such as Gippsland Lakes will also be affected •Port Phillip Bay and Bay • estuaries

High turbidity • transport of contaminants (e.g. heavy metals, • lowland rivers and wetlands nutrients and toxic organic compounds) which are bound to the particulate matter • reduction of light with impacts for aquatic flora and fauna, particularly visual predators • mechanical and abrasive impairment of fish gills and smothering of benthic habitats • clogging of filter-feeding apparatus of animals such as mussels Victorian River Health Strategy 79 Table 7.1 cont.

Water Quality 4 Issue Ecological Impact Systems Most at Risk

Altered pH • spawning failure and diminished hatching • lowland rivers values success for fish have been associated with pH • lakes, dams and weirs (particularly values less than 6.0 and greater than 8.0 associated with algal blooms) • macro-invertebrate communities generally have reduced numbers, fewer species and altered SECTION 4 species at lower pH values • mobilising and toxicity of pollutants at low pH

Low dissolved • oxygen depletion can be lethal to biota and • instream environment – of particular oxygen levels promote nutrient release from sediments concern for deep pools during summer, on which larger fish species rely • lowland rivers, dams and weirs • estuaries Specific Management Issues

Thermal water • profound adverse impact upon native • release of extremely cold water from the pollution warmwater fish communities both directly and base of water storages into river systems indirectly, including slower growth rates, cold • urban areas with warm water run-off water shock, disruption of breeding cycles and • release of warm water from industrial increased egg and fingerling mortality cooling processes

Toxicants • chronic and acute effects • slow flowing lowland rivers are largely • bioaccumulation of environmental toxicants such depositional environments and are the final as heavy metals and pesticides receptor for critical contaminants derived from upstream reaches of the river • static sections of a river and weir pools, lakes and wetlands • waters with low pH

80 Victorian River Health Strategy 7.2 MANAGEMENT ISSUES The management of water quality is the most complex issue to be dealt with in the management of river health. This is primarily because of the nature of the pollutant sources and the implications this has for management. Pollutant sources can be categorised into two types: • point sources where there is a direct input of pollutants into a river system. These can include: - domestic wastewater from wastewater treatment plants; and -industrial wastewater. • diffuse sources where pollutants are carried in surface run-off or via groundwater to the river system. These can include: - erosion of farmland, roadsides and stream banks; -agricultural runoff; - runoff from forestry activities and construction sites; - septic tanks; -urban stormwater runoff; - irrigation drainage; - waste and litter; - intensive animal industry effluent; and - rising water tables. The control of point sources is theoretically straightforward through a range of regulatory mechanisms. By contrast, the control of diffuse sources is much more difficult because it essentially involves every land use and/or activity taking place within a catchment. This means that as land uses and management practices change within a catchment, there will be impacts on water quality, either positive or negative. Moreover, whilst the impact of any one land manager in a particular land use in a catchment may be small, the cumulative impacts of all the land managers in that land use may be quite significant. The implications of this are huge. It means that the management of water quality can only be successfully undertaken with an integrated catchment management approach, involving all of the land uses and land managers within a catchment, ensuring that they are aware of their impacts on water quality and river health, and are committed to reducing these impacts. An effective framework for the management of water quality needs to recognise this dependence on an integrated management approach for managing both point and diffuse sources. Such a framework requires: • a state policy context which recognises regional catchment management arrangements as the predominant mechanism for the management of water quality; • regional planning arrangements for water quality which: - are developed in the broader context of management of river health; - are catchment-based; - provide clear mechanisms for coordination; and - integrate the various aspects of water quality which impact on river health; • the establishment of minimum acceptable standards for undertaking specific activities within the catchment, particularly to minimise the impact of various land uses and other diffuse sources on water quality; and • an ongoing understanding of current and emerging water quality issues. To date, parts of this framework are developed and being implemented. This chapter builds on this work and suggests a further evolution of the framework to ensure that water quality management is a key component of integrated catchment management.

Victorian River Health Strategy 81 7.3 FRAMEWORK FOR THE MANAGEMENT OF WATER QUALITY 4 7.3.1 State Policy Context The key statewide statutory policy framework for water quality protection in Victoria is the SEPP (Waters of Victoria). The SEPP was first developed in 1988 and identifies the beneficial uses of water and sets the environmental quality and policy directions required to address specific impacting activities. ‘Beneficial uses’ is the term used in the SEPP to describe current or future environmental values or uses of surface waters, which depend upon clean water. Over time, the statewide SEPP (Waters of Victoria) has been supplemented by the development of schedules for certain regions, which contain region-specific beneficial uses and environmental quality objectives (this term is used in the SEPP to SECTION 4 describe the level of environmental quality needed to avoid risks to beneficial uses and to protect them). While the 1988 SEPP (Waters of Victoria) provided a useful and essential framework for the management of point sources through licensing agreements, it pre-dated the Victorian catchment management arrangements and did not address diffuse sources of pollution effectively. Addressing these issues has relied on other statewide policies focused on specific water quality related issues such as the Victorian Nutrient Management Strategy and Victoria’s Salinity Management Framework. These policies link directly to the regional catchment planning process where priorities and Specific Management Issues regional targets to address water quality issues have been outlined in the RCS and associated action plans. The SEPP is now being revised. It will continue the role of providing long term environmental quality objectives for the management of Victorian surface waters. However, the intent of the revised policy is to provide benchmarks that can be used to assess impacts on water environments and to assess progress towards the sustainable use of these environments. The revised policy has been drafted to link directly to the regional catchment management process where communities decide how to progressively move towards achieving sustainable use and protection of natural resources, including water, in terms of quality and quantity. The revised SEPP (Waters of Victoria) will set environmental quality objectives that can be used as direction on the water quality and biological requirements for ecologically healthy rivers and on the water quality and biological requirements to protect various environmental, economic and social assets. The revised SEPP will recognise the regional catchment planning processes whereby regional communities set regional targets to move towards these environmental quality objectives after consideration of economic, social and environmental implications. It will recognise that the regional water quality targets, which will be included as a schedule in the RCS, outline community agreement for progress towards reaching the long-term environmental quality objectives outlined in the SEPP (Waters of Victoria) and that the progress of a region may be audited against this schedule. The revised SEPP (Waters of Victoria) will therefore empower these regional communities by providing an additional statutory basis for the regional planning processes and the regional targets that are generated through these processes.

The revised SEPP (Waters of Victoria) will recognise: • the regional planning processes that generate regional targets for water quality and other river health related issues after consideration of environmental, social and economic considerations and the identification of achievable management options; and • the regional water quality targets that will form the basis for a schedule of regional resource condition targets in the RCSs, during their update in 2002; and provide: •a process for auditing progress towards regional targets.

82 Victorian River Health Strategy Effectively, the proposed revisions to the SEPP provide some environmental quality objectives for the regional communities and ensure that communities move towards achievement of them, whilst considering the social, economic and environmental factors that will realistically influence this progress. Through supporting the regional planning processes, the proposed new arrangements will also reduce the need to develop regional SEPP schedules, although there is still an imperative to have regional SEPP schedules in coastal and marine environments.

7.3.2 Regional Arrangements for the Management of Water Quality Currently, as outlined in Chapter 5, catchment-based water quality related action plans have been developed to deal with specific issues such as nutrients and salinity. In addition, there are a number of other plans where the primary objective is not the management of a water quality issue but where the management actions will have water quality impacts. These are outlined in Table 7.2. However, because of the range of activities which impact on water quality, there is no one plan that encompasses all water quality issues and projects and articulates the integrated water quality targets that these aim to achieve.

Table 7.2 Summary of regional plans and programs in Victoria which have implications for water quality

Primary Purpose Plan or Program Description

Water quality Plans developed directly linked to Plans completed to date include the Macalister Irrigation meeting SEPP objectives District Nutrient Reduction Plan and the Port Phillip Bay Environmental Management Plan (NRE 2002), both of which focus primarily on nutrient reduction.

Water quality Catchment Nutrient Management Plans that recommend a range of priority management actions Plans, developed as part of the targeted at the major nutrient sources (such as irrigation Victorian Nutrient Management drainage, sewage treatment, urban stormwater, dryland diffuse Program sources, forests and intensive animal industries) to meet agreed nutrient levels. These have been developed/are currently under development in each CMA region.

Water quality Salinity Management Plans / Plans, particularly in irrigation regions, which set priorities to Land and Water Management reduce river salinities. These have been developed/are Plans currently under development in each major irrigation region in Victoria.

Water quality Stormwater Management Plans Focus on urban stormwater and associated with the Victorian Stormwater Action Program.

In-channel Waterway Management Plans Have a significant focus on turbidity. Also see Chapter 5. management

Rural drainage Rural Drainage Plans See Chapter 5.

Water allocation Bulk Entitlements and Streamflow See Chapter 5. Management Plans

Floodplain Floodplain Management Plans See Chapter 5. management

Victorian River Health Strategy 83 Table 7.2 cont. 4 Primary Purpose Plan or Program Description Industry/land use Includes plans and programs Key components of plans include a focus on water quality and based plans and developed by both industry and resource management, e.g. environmental management programs agencies for a range of systems, national quality assurance programs, Clean & Green. industries/land uses including Linked to industry/agency based programs including FarmBis, horticulture, dairy, private forestry, Target 10, Water for Growth, Crop Check and Grape Check, to etc. ensure adoption of current accepted best management

SECTION 4 practices for land use.

Land use based Plans for managing protected plans catchments for the provision of drinking water

Environment Includes Environment Licences, set by EPA, contain conditions that aim to control improvement plans Improvement Plans (EIPs) the operation of certain premises in order to ensure that there Specific Management Issues developed as part of EPA is no adverse impact on the environment. The conditions vary approved licences and but typically include waste discharge limits, monitoring Neighbourhood EIPs. requirements and reporting requirements. Increasingly, licences include environment improvement plans that aim to continually reduce the impact of the premises on the environment.

Asset protection For example, Wetland Wetland and estuary management plans developed to protect plans Management Plans, Estuary/ high priority environmental assets and include water quality Coastal Action Plans and Water priorities. Water storage management plans developed by Storage Management Plans water authorities to ensure reliable delivery of water to customers and can include water quality as a key management issue.

Consequently, the current management arrangements may result in regional objectives, targets and outcomes that are not developed within the broader context of river health, not integrated and may be misaligned. The current arrangements also increase the likelihood of not capturing the progress we are actually making in terms of addressing water quality issues. The current regional planning arrangements for water quality need to be improved to ensure that they: • are developed in the broader context of management of river health; and • integrate the various aspects of water quality which impact on river health.

84 Victorian River Health Strategy Water quality management in the context of river health The priorities for the management of water quality within the context of broader river health outcomes will be established and integrated through the development of the regional RHSs. As mentioned in Chapter 5, these strategies identify the ecological, economic and social assets of all the major river reaches in a river system. In many cases, degrading water quality will be a significant threat to a number of the ecological, social and economic assets within a region, such as supply of water for towns and irrigation, and high value wetlands. In developing programs to protect or restore assets at risk from degrading water quality, communities will be able to use the environmental quality objectives for various beneficial uses identified in the SEPP (Waters of Victoria) as a guide. Where high value environmental, economic or social assets are at risk, this will be dealt with through the development of a Catchment Water Quality Action Plan (CWQAP). Such plans will build on the existing water quality related action plans, namely catchment nutrient management plans and salinity management plans, to more fully address water quality issues in addition to nutrients and salinity. Thus catchment nutrient management plans will be expanded over the next five years to address a range of water quality issues. The CWQAP may exclude salinity where this is already addressed in an existing salinity management plan. In such cases, the salinity management plan will need to ensure consistency in plan development, consideration of assets and priority setting with the CWQAP. As with current catchment nutrient management plans and salinity management plans, new CWQAPs are where the regional communities will: • undertake the detailed analysis of the impacts of water quality on ecological, economic and social assets; • develop and evaluate management options which focus on sources rather than problems; • undertake cost-benefit analysis; • work through trade-offs (including potential win-win options in some cases); • set regional targets for water quality; and • identify clear management actions and roles and responsibilities. The detailed work needed to determine the actions to improve water quality is therefore undertaken within the CWQAP process. As mentioned in Chapter 5, the regional targets set through these processes are then drawn together to provide integrated regional targets for water quality and then, more broadly, river health. Final priorities for water quality will be influenced by broader river health considerations as part of the development of the regional RHSs. Through this regional RHS planning process, priorities relating to the protection of assets will be set in a consistent way for the management of water quality. This will help to align implementation projects and works undertaken by the range of land and water management agencies, organisations and individuals. Thus, implementation activities will be required to focus on achieving community agreed water quality outcomes (whether specifically addressing urban stormwater, water efficiencies, instream erosion, horticultural production or dryland management practices) as well as regulatory requirements.

The regional RHS will set the priorities for the management of water quality that will then be used as a common basis for water quality related plans and programs.

Victorian River Health Strategy 85 Developing integrated catchment water quality action plans Whilst there are a number of water quality related action plans either developed or currently under development across 4 the State, there are still a number of issues to be resolved to ensure that they can fit the model outlined above. These include: • inconsistent approach to asset protection. Many of the existing water quality related action plans that are either developed or currently under development have undertaken some form of asset protection analysis but this is inconsistent between catchment nutrient management plans and salinity management plans. Existing catchment nutrient management plans are focused on the management of nutrients to minimise the risk of algal blooms and

SECTION 4 have used a statewide methodology to explicitly identify the economic assets at risk but have not covered the environmental assets in the same way. Salinity management plans have incorporated an asset protection approach but the degree of consideration of river-related environmental assets has varied across plans. In addition, the cost- benefit analyses in these plans reflect these inconsistent approaches to the consideration of assets. • insufficient acknowledgment of the need to protect existing areas of good water quality. In general, this will occur with the use of appropriate protection policies rather than with the need for investment. Nevertheless, it

Specific Management Issues needs to be included to ensure that these areas receive proper consideration. • limited consideration of the risks posed by other water quality contaminants or issues. As mentioned above, water quality related action plans developed specifically for water quality issues have focused primarily on nutrients and salinity to date. This is reasonable given that these are the two principal water quality issues across Victoria. Importantly, many of the activities undertaken to address these issues also provide wider water quality benefits. For example, protection of stream banks from erosion not only reduces nutrient inputs to rivers but also addresses turbidity issues. Although the approach of managing a range of water quality issues by focusing on the key issues of salinity and nutrients has been widely accepted, there is little documentation of associated water quality benefits within catchment nutrient management plans or salinity management plans. Similarly, the broader multiple benefits that can be achieved through water quality protection and/or restoration actions are not well documented. Improving the documentation of all water quality and other multiple benefits within existing and future water quality related action plans will provide a stronger basis for the development of regional RHSs for particular systems. It will also allow more consistent analysis and reporting on a range of potential water quality issues within a region, improving our ability to undertake proactive protection of good water quality. To address these issues and to ensure that water quality related action plans fit into the broader context and priorities of regional RHSs and address all relevant water quality issues, the following actions will be undertaken.

NRE will develop ‘Guidelines for the Development of Action Plans’ which will ensure that existing water quality related action plans and future CWQAPs are consistent with the VRHS. These plans will: • set water quality priorities based on a consistent asset protection approach; • include protection of areas of good water quality as well as priorities for restoration of areas with poor water quality; and • undertake appropriate and consistent cost-benefit analyses in setting priorities for water quality related activities.

86 Victorian River Health Strategy CMAs will develop a set of regional water quality targets based on an analysis of the likely outcomes of all water quality related plans. This will form part of the regional resource condition schedule of targets for the RCS. This will be used as the driving mechanism for the progressive integration of water quality related plans into a CWQAP.

The latter recommendation will be achieved by: • documenting all water quality and other multiple benefits likely to occur as a result of implementation of existing catchment nutrient management plans and salinity management plans, and identifying possible regional targets for these parameters. These will be incorporated into regional reporting and evaluation frameworks. • expanding the scope of catchment nutrient management plans to become CWQAPs over the coming five years and including regional targets for water quality issues, including as a minimum, nutrients, salinity, turbidity, thermal water pollution and toxicants (in particular associated with urban stormwater). Other localised water quality considerations should also be included as appropriate, such as the potential impact of imported water from areas outside of CMA boundaries. Salinity must also be considered either as part of the CWQAP or within a regional salinity management plan that is consistent with the CWQAP in terms of plan development, consideration of assets and priority setting. The development of CWQAPs is already starting to occur around Victoria, in particular with the current development of plans in both West and East Gippsland. The above recommendations are applicable to areas of Victoria where CMAs are in effect. The exception to this is the Melbourne metropolitan area where institutional arrangements differ from the rest of the State. The expected policy direction associated with the metropolitan region is outlined in Chapter 11.

7.3.3 Establishment of Acceptable Standards In addition to determining priority activities for pollutant reduction through CWQAPs, there is a need to establish minimum acceptable standards for all the significant activities within the catchment in order to minimise their impact on water quality. There are a range of mechanisms for establishing minimum acceptable standards, of which SEPP (Waters of Victoria)is the key statutory policy and regulatory mechanism. The revised SEPP (Waters of Victoria) includes a range of clauses to specifically address point and diffuse source pollution to complement the Victorian Nutrient Management Strategy and Victoria’s Salinity Management Framework. As mentioned in section 7.2, there are a number of pollutant sources that impact on riverine systems. The revised SEPP (Waters of Victoria) will include a series of policy directions to reduce the impact of pollutants on rivers and streams from the following key sources: • soil loss from farmland, roadsides and stream banks; • agricultural runoff; • runoff from forestry activities and construction sites; • domestic wastewater and trade waste; • urban stormwater runoff; • irrigation drainage; and • intensive animal industry effluent. In addition, Codes of Practice for different activities and industries are an important regulatory instrument. Best management practices (BMPs) are a voluntary approach that ensure use of best scientific information in directing activities.

Victorian River Health Strategy 87 While there are many existing Codes of Practice and BMPs for industries and activities, an area requiring further support is land use and management practices. Whilst the CWQAPs will indicate areas where current land management is a 4 problem for water quality, in many cases the current institutional processes or information available are not adequate to facilitate change in land management practices or use. Key areas where further work is needed are: • the inclusion of regional river health and water quality issues into local government planning processes; • a consistent approach to the management of rural drainage; and • the provision of information to land managers on best management practices for a range of specific land uses. Management practices should seek to optimise water quality improvements and broader river health benefits with economic returns. SECTION 4

CMAs will work in partnership with municipalities to facilitate the adoption of community agreed water quality priorities and regional targets outlined in the regional RHSs into local government planning processes.

NRE, in partnership with EPA, Department of Infrastructure, rural water authorities, industries, CMAs and other relevant groups will continue to develop Codes of Practice, best management practices guidelines

Specific Management Issues and Environmental Management Systems for different land uses, particularly related to agriculture.

NRE in partnership with CMAs, rural water authorities and other relevant groups will develop statewide principles for the management of rural drainage.

NRE in partnership with relevant stakeholders will further investigate and document the benefits derived by implementing various water quality management activities, particularly focusing on the scientific basis, assumptions and quantifiable water quality improvements for ‘best management practices’.

7.3.4 Understanding Current and Emerging Water Quality Issues Many potential water quality issues are not currently covered as part of the regional planning process until they are clearly impacting on assets within the catchment. Yet this is contrary to the central tenet of the VRHS, namely a hierarchy of management effort where protection of rivers and streams of high value is the highest priority. Thus, there is a need to ensure that potential water quality issues, particularly current and emerging issues such as nitrates in groundwater, endocrine disruptors, contaminants in sediments (particularly metals and other toxicants in streams in urbanised catchments) and increasing acidity, are managed proactively. The following research recommendations should assist in identifying, understanding and managing current and emerging water quality issues.

88 Victorian River Health Strategy Groundwater At present water quality management focuses on surface waters. Yet there is growing evidence that contamination of groundwater is a critical issue. For example, groundwater contributions may be a more important source of nitrates for some streams than that entering in surface run-off. The SEPP (Groundwaters of Victoria) aims to protect the beneficial uses dependent on groundwater quality. As with the SEPP (Waters of Victoria), although the SEPP (Groundwaters of Victoria) does assist in addressing point sources through licensing agreements, it does not address diffuse sources of pollution effectively. Importantly, our current understanding of the impact of diffuse sources is poor – impacts can be widespread, specific polluters are hard to identify, and the groundwater contamination can be difficult or impractical to clean up.

NRE will undertake research into the impact of groundwater contributions on water quality, particularly in times of low flow, including consideration of how the groundwater is being contaminated.

Increasing acidity Altered pH levels can have significant and complex impacts on riverine ecosystems. As mentioned in Chapter 3, trend analysis results to date suggest that pH is falling in many regions of Victoria. Current data is limited and there is little research into the causes and implications of such changes.

NRE will undertake research into the impact of increasing acidity on river health, including consideration of the mechanism by which pH is being altered.

Thermal water pollution A recent national workshop identified thermal pollution as a major emerging issue in river health. However, we know little about the ecological implications and management options for addressing the broader issue of thermal water pollution. For example, warm water runoff from paved urban areas or release of cold water from storages may both have adverse ecological impacts.

No new water storages will be developed without appropriate consideration and avoidance of potential thermal water pollution impacts.

By 2002, NRE in partnership with relevant stakeholders will complete an investigation to identify and broadly prioritise rivers likely to be at risk from thermal water pollution based on the characteristics and operational regime of dams.

NRE will work with water authorities to implement a monitoring program to verify temperatures associated with dam releases in priority rivers at risk from thermal pollution.

By 2006, NRE in partnership with relevant stakeholders will establish priorities for biological monitoring of the effects of thermal pollution in rivers shown by water authority temperature monitoring to be a problem and will establish priorities for mitigation.

Victorian River Health Strategy 89 8. Management of Riparian Land 4 8.1 IMPORTANCE OF RIPARIAN LAND From an ecological perspective, riparian land is regarded as: the area of land that adjoins, regularly influences, or is influenced by, a river. It can vary from a fairly narrow band in upland reaches of waterways to wide floodplains along lowland rivers. The width of riparian land cannot be precisely defined as it varies according to local conditions. In the VRHS, the riparian land is identified in the upland and valley reaches as that land where riparian Ecological Vegetation Classes (EVCs) grow or to the SECTION 4 best of our knowledge would have existed under pre-1770 conditions. In the floodplain reaches, riparian land is defined as those areas regularly wetted by floodwaters under natural flow conditions. Where an administrative boundary is required for planning purposes, this is taken to be the ‘floodway’ as defined in Victorian Planning Provisions. Floodways comprise the channel, the stream and the portion of the floodplain that conveys the main flow of floodwaters. Riparian land is important in an aquatic and terrestrial sense. It is vitally important to the health of a waterway. Riparian land with intact vegetation provides:

Specific Management Issues • organic matter to a river – a major food source for instream biota; • a supply of woody debris within the river, which forms key habitat areas for many fish and invertebrates and influences the shape of the river substrate; • a source of shade in upland areas which influences water temperature and light penetration, and therefore regulates instream primary production; and • stability to banks, minimising erosion in many areas. In addition, the riparian land is a buffer between the catchment and the river. It can filter nutrients and sediment from catchment run-off and reduce the impacts of catchment land use on the river itself, although its effectiveness will depend on the structure, width and health of the riparian vegetation, as well as the adjacent land use. Intact riparian land is also an important part of the terrestrial landscape. Riparian land: • has a highly diverse flora and fauna, being on the edge of an aquatic and terrestrial system; • acts as a refuge in dry times, when it may be the only place where plants have new growth, flowers or are producing seed – so it can be an important source of food; • is often the only reasonably healthy remnant of native vegetation in catchments which have been largely cleared, giving it special importance to biodiversity; and • depending on the size and structure, can act as a wildlife corridor linking habitats, especially in cleared catchments. In addition to their ecological significance for both rivers and the terrestrial landscape, riparian zones can be of significant value to the community. They are used for recreation (e.g. bushwalking, fishing and picnicking) and are often the sites of considerable heritage value, particularly to Indigenous communities, because of their close association with water. Riparian and floodplain lands are of importance to agriculture because they provide easy access to water and are often a highly productive part of the landscape, being damper and often having better soils than the surrounding catchment. However, the capacity of riparian land to perform the ecological functions outlined above and maintain its recreational and heritage values will depend on its width, connectivity, and the quality, quantity and structure of the vegetation present. The major threats to riparian land are those which affect one or more of these key attributes, and include clearing, erosion, uncontrolled stock access, recreational use (e.g. trampling of understorey layers), weed invasion, stream crossings (e.g. roads, powerlines), removal of timber for firewood, salinity, and water management.

90 Victorian River Health Strategy These threats are very real. Because of their importance for agriculture and because their other values were poorly understood, a large proportion of riparian areas were cleared or heavily grazed in the past. The condition of riparian land was assessed as part of the 1999-2000 statewide benchmarking of stream condition. It showed that less than 10% was in good to excellent condition, around 40% in reasonable to good condition, and over 50% in poor to very poor condition.

8.2 MANAGEMENT ISSUES There are three issues that complicate the management of riparian land. These are: • the mismatch between ecological and administrative definitions of riparian land; • the varying tenure of riparian land; and • the dynamic nature of rivers.

Administrative definitions In the past, riparian land was defined for administrative purposes as the land within some fixed width (generally between 20 and 60 m) running alongside specific rivers. This definition does not recognise all the potential ecological functions that riparian land can provide and is clearly at odds with the ecologically-based definition outlined above. It particularly ignores the importance of floodplain linkages for rivers. This is because much of our current knowledge of the ecological importance of the riparian zone and floodplains for the river has only been generated in the last ten to twenty years. All of the current land tenure and licensing arrangements are based on these administrative definitions and have been since early settlement. Changing these to incorporate ecological considerations would be extremely difficult so alternative management approaches will be adopted in preference.

Tenure of riparian land A further factor complicating the management of riparian land is the variety of possible land tenures which exist in urban and rural Victoria. These include: • Crown land water frontage reserves: - licensed, and - unlicensed; • Crown land reserved for other purposes, such as National or State Parks, State forest and a range of other reserves set aside for conservation, recreation or other public purposes; • unreserved Crown land; and • privately owned land. Crown land water frontage reserves are generally 20-30 m wide strips along the major Victorian waterways. Of about 128 000 km of frontage in Victoria, there are 25 000 km (approximately 20%) of frontage reserves. These reserves can be licensed for agricultural use to adjoining landholders. The type of use is, in the main, grazing and, in a few cases, cultivation. Often the exact boundaries of the various reserved and unreserved Crown lands have not been formally surveyed and therefore are effectively unknown.

The nature of rivers Management is made more complex by the fact that rivers are dynamic, sometimes changing their course during floods. As a result of this, the relationship to the river of the various reserved and unreserved frontage lands may have changed over time due to geomorphological changes in the river itself.

Victorian River Health Strategy 91 Conclusion As a consequence of these major issues, the formal land tenure and administrative arrangements for riparian land can 4 be complicated and do not reflect the ecological significance of the land for the river. This is particularly true for the lowland reaches of rivers where there are extensive floodplain areas that are often in private ownership. However, it would be both unnecessary and very difficult to try to change these formal tenure arrangements. What is required is a management framework where all managers of riparian lands, both public and private, recognise the ecological importance and functions of that land and aim to manage their land in a way which protects and/or restores these functions.

SECTION 4 We recognise that currently we are a long way from achieving this goal. The VRHS aims to put in place a framework where all the current tools and incentives for managing riparian lands are aligned and aimed at achieving this outcome.

8.3 MANAGEMENT FRAMEWORK FOR RIPARIAN LAND To develop a management framework in which all riparian land managers (i.e. any people or agencies who own or manage riparian land) are encouraged to manage their land to protect and/or restore the ecological functions of the

Specific Management Issues riparian zone requires five major prerequisites. These are: 1. a clear set of goals and objectives for river systems, with clear priorities, tools to provide guidance and measurement of progress toward objectives, and targets for riparian protection and restoration; 2. an acknowledged partnership approach between all riparian land managers; 3. a clearly established caretaker of riparian condition; 4. mechanisms in place which encourage and facilitate riparian land managers to manage their land in accordance with the goals and objectives; and 5. a common understanding in the community of the importance of riparian land. There is an existing management framework for native vegetation, described in Victoria’s Draft Native Vegetation Management Framework – A Framework for Action at a statewide level and translated to a regional level in draft regional Native Vegetation Plans. This management system encompasses riparian vegetation. The approach described in the VRHS has been developed to complement and add to existing regional Native Vegetation Plans, not to replace them with a different system.

8.3.1 Goals, Objectives and Priorities for Riparian Management In considering the various ecological, economic and social values provided to the community by riparian land, the Government has, in the past, provided direction on the preferred management of riparian zones. The LCC (1991) provided major directions in its Rivers and Streams Special Investigation, which were endorsed by Government. The recommendations are that public water frontages be used to: • conserve native flora and fauna; • restore indigenous vegetation; • protect adjoining land from erosion; • protect the scenic quality of the local landscape; • provide protection for cultural heritage; and • provide access for recreational activities; and where this does not conflict with the above, to allow access for water and for grazing of stock by adjoining landowners under licence.

92 Victorian River Health Strategy These statements recognise the importance of riparian land and provide the general direction for the management of riparian zones in the ownership of the Crown. Whilst this is a crucial first step, it does not apply to riparian lands in private ownership. Clear policy direction is required which indicates the preferred direction for the management of all riparian land regardless of tenure.

Wherever possible, the management and restoration of riparian land should assist in river restoration, maintenance of healthy rivers and landscapes, and the protection of cultural and social values.

This general direction for the management of riparian land will be integrated into the regional management framework for rivers and the development of clear management objectives and priorities for each of the major river reaches. The goals and objectives for the management of riparian land will be established through the development of the regional RHSs described in Chapter 5. These strategies identify the ecological, economic and social assets of all the major river reaches in a river system. Ecological assets associated with the riparian land include areas with rare or threatened species or vegetation communities, riparian zones considered to be ecologically healthy, areas of high cultural and social significance, and floodplain wetland areas of high conservation value. The strategies will establish where the current condition and/or management of the riparian zone is a threat to these assets and where there may be major opportunities for restoration. Crown Frontage Management Plans are continuing to be developed for riparian land on Crown frontages and similarly identify assets and threats. These plans will form an input to the regional River Health Strategies. Using this approach, the regional RHSs, along with the Crown Frontage Management Plans, will establish the objectives for each major river reach in terms of the level of asset protection to be provided. In doing this, they will establish the priorities and targets for riparian protection and restoration. Priorities will be established using the three key tenets of the VRHS, that is: • protect those areas of highest value; • maintain areas which are ecologically healthy; and • achieve an overall improvement in the environmental condition of the rest. In establishing priorities and targets for riparian protection and restoration, the full range of benefits will be identified and considered. These include benefits to the biodiversity of riparian and instream habitats, to economic assets such as bridges, to recreational values and to cultural values.

Priorities for riparian protection and restoration will be established through assessment of multiple benefits.

Priorities for protection and restoration of riparian lands will be established through this integrated planning process, regardless of the tenure of riparian land. Integration with regional Native Vegetation Plans is an important issue in riparian management. These plans identify priorities on the basis of the conservation significance and quality of the EVCs. A variety of tools and approaches have been developed to assess significance and habitat quality and to assess the expected ecological benefits of restoration works. To ensure complementarity, measures of the significance and quality of EVCs are also used in setting waterway priorities. However, identification of priorities through both the regional RHSs and Native Vegetation Plans may differ slightly as assessments of waterway priorities also take into account instream values, and assessments made under the regional Native Vegetation Plans cover a larger range of vegetation types and a larger area. Management of high priority areas identified through both plans will be supported by both programs under appropriate cost-sharing arrangements. Priorities identified through only one plan will be addressed by that program, and CMAs will ensure that management addresses the values identified in both programs.

Victorian River Health Strategy 93 Priorities for protection and restoration of riparian lands will be established through regional river health and regional 4 vegetation planning processes and implemented, where possible, regardless of the tenure of riparian land. 8.3.2 Partnership Approach on Riparian Land Management Any person or agency who owns or manages riparian land is a riparian land manager. This applies to private landholders, those with Crown frontage licences, committees of management as well as government agencies. Management and restoration of riparian land will only succeed if there is a clear partnership between riparian land managers and Government. Riparian land managers will be encouraged to be involved in all aspects of frontage SECTION 4 management, including the development of regional RHSs, prioritisation, target setting and implementing actions.

Restoration activities will only be undertaken in priority areas in partnership with riparian land managers.

Activities associated with the protection and restoration of riparian land will only be undertaken in partnership with riparian land managers. Formal management agreements will be entered into between the private riparian land Specific Management Issues managers and the CMA. These management agreements will be ongoing. They will articulate: the purpose for protecting or restoring the riparian land, the restoration activities, cost-sharing, long term management/maintenance arrangements including weed management, and conditions for stock access. Wherever possible riparian management should be integrated with the planning of whole of farm management.

8.3.3 Caretaker of Riparian Land Whilst there are many potential riparian land managers including individual farmers, local governments, government authorities (e.g. Melbourne Water, Parks Victoria) and government departments (e.g. various NRE divisions), one group needs to be given the responsibility for the overall oversight and coordination of river management and restoration including riparian protection and restoration. This group will be the CMAs in regional Victoria. Melbourne Water (MWC) will fulfil this role in areas currently under its management. In areas within the Port Phillip and Westernport CALP Board’s jurisdiction but outside Melbourne Water’s, the two agencies will act in partnership to develop a range of options for management, as outlined in Chapter 11. The caretakers will be responsible for developing the regional RHSs and Crown Frontage Management Plans, identifying the priorities for protection and restoration of riparian land, negotiating with other land managers to implement these priorities, negotiating ongoing management arrangements, and reporting on riparian condition as part of their general reporting on river health.

The riparian caretakers will be responsible for coordination and implementation of riparian restoration and protection programs and for reporting on riparian condition.

94 Victorian River Health Strategy 8.3.4 Mechanisms for the Protection and Restoration of Riparian Land

Protection The ecological value and functions of riparian land depend on the quality of vegetation present. It is therefore important to protect native vegetation on riparian land where it exists and to prevent further losses. A range of mechanisms is already in place to protect existing vegetation on riparian land. These include: • management plans for land within Victoria’s parks and reserves system where these include riparian land. • Native Vegetation Retention controls implemented by local government through the State planning schemes. These control the removal or destruction of native vegetation. Victoria’s Draft Native Vegetation Management Framework – A Framework for Action provides a framework for achieving a reversal in the decline of native vegetation across the landscape and includes a review of the current planning controls. Applications to clear native vegetation need to consider factors including proximity to streams. • Victoria’s Flora and Fauna Guarantee Act 1988, which prevents the taking of protected flora without authorisation. • the Code of Forest Practice for Timber Production 1996 (the Code) which provides for the protection of riparian zones in both State and private forests. Management conditions vary according to waterway size and permanence and land tenure. • a comprehensive forest management plan framework, which includes Regional Forest Agreements and Forest Management Plans. This provides for the ecologically sustainable management of Victoria’s forest resources. In State and private forests, the Code provides protection for riparian vegetation through management of buffer and filter strips along rivers and around wetlands. Buffer and filter strips along waterways range from 10 to 40 m from the banks, depending on the permanence of the waterbody and the slope and erodibility of the soils. These existing mechanisms should ensure that riparian land with high ecological or social values would be protected in reserves and on private land.

Native riparian vegetation will be protected through existing policy and statutory planning mechanisms.

In addition to this, riparian land can be at some risk where recreational pressure is high. Where the riparian land is of high value, recreational plans are needed. In some areas, recreational plans have already been developed. Where there are no plans, CMAs will facilitate their development by the key riparian land manager in consultation with key stakeholders. Arrangements for on-going management will be included in the plans.

CMAs will facilitate the development of Recreational Plans by the key riparian land manager in consultation with key stakeholders for riparian areas of high value with heavy recreational pressure.

Restoration Restoration of riparian lands generally requires revegetation, weed management and, in most circumstances, fencing to control stock access to protect the new plants, the riverbed and banks, and water quality. In some cases, fencing may be all that is required to allow natural regeneration to occur. In other cases, riparian restoration will require more intensive management, including the management and replacement of exotic species such as willows, blackberries and other weeds, or the use of fire as a management tool. Best management practice principles for the restoration of riparian land are outlined in Box 8.1. However, the standard of restoration to be achieved will depend on the values of the riparian land, the likely environmental benefits, the costs and the goodwill of the riparian land manager.

Victorian River Health Strategy 95 Box 8.1 Principles for Best Practice Riparian Restoration

4 In undertaking restoration of riparian land: • maximise continuity of vegetated areas on both sides of river; • in general, the wider the area for protection or restoration, the better (though there will be a point when there is more value in moving to a new area rather than continuing to extend); • use only native, indigenous species from the local provenance - no planting of exotics; • provide a ‘natural’ structure consistent with original condition, for example:

SECTION 4 - grass and herb layer, - understorey shrubs, and - overstorey trees; • allow accumulation of woody debris on the ground; • where possible, work out from areas in best condition that can act as a colonisation source; • link remnants, including non-riparian remnants, where appropriate for the values being protected; • establish conditions that allow natural regeneration; Specific Management Issues • exclude stock; and • remove exotics, and at the same time implement a program of revegetation and erosion management.

CMAs will negotiate with other public land managers to ensure that their riparian management is consistent with the priorities for protection and restoration of riparian lands identified in the regional RHSs. CMAs may provide incentives (when funds are available) to encourage private riparian land managers to participate in the restoration of riparian land. Incentive schemes will reflect the priority of the area for riparian restoration, the level of environmental benefits provided and the long-term nature of the agreement. Provision of incentives will be on the basis of a land management agreement between the CMA and the land manager.

CMAs may provide incentives (when available) to encourage private riparian land managers to participate in the restoration of adjoining riparian land.

In addition, Whole Farm Plans will encourage inclusion of specific planning for frontage management. A key disincentive to farmers who fence out riparian land is the loss of direct access to the stream for stock watering purposes. To overcome this, an arrangement is needed which encourages landholders to protect their riparian land and also accommodates the licensing requirements for management of diversions. The CMAs will develop a protocol, in association with rural water authorities (RWAs), for issues associated with water diversion which arise as a result of fencing out river frontages. The protocol will include an evaluation of various options for cost sharing where landholders would require alternative sources of water for stock. Agreement over cost sharing arrangements will be reached between the CMAs and RWAs by June 2003.

CMAs will develop a protocol for issues which arise as a result of fencing out frontages, including options for cost sharing where licences are required for alternative stock watering sources.

96 Victorian River Health Strategy A further concern is the management of pests and weeds in the fenced-off riparian zones. Riparian land managers often consider that occasional stock access to riparian zones with growing vegetation can assist in pest and weed management. Land management agreements will specify any conditions for stock access over the life of the agreement and the ongoing arrangements for pest and weed management. However, this is a key area where the impact of occasional or controlled grazing on the ecological health of riparian areas versus total exclusion is not clear. Similarly, in some cases fire may be an appropriate management tool, though the appropriate fire regime is not yet understood.

NRE in partnership with the CMAs will develop statewide guidelines for occasional or controlled grazing in riparian land.

Weed management is one of the most important restoration activities for riparian land. While use of biocides in riparian land can be a risk to environmental values, in many cases it is the only feasible means of controlling weeds. Spraying with biocides for weed management will be kept to a minimum in line with SEPP (Waters of Victoria) requirements and will be undertaken to best practice standards. To effectively integrate the management and restoration of riparian land, the management of Crown water frontages needs to be included under the umbrella of the regional RHSs. This is particularly important for the management of those Crown water frontages outside Victoria’s parks and reserves system, State forests and coastal and urban land. This would mean that Crown water frontage licensing could be used as one of the management tools to assist in the implementation of the regional RHSs. As a matter of principle, the responsibility for the management of Crown water frontages outside parks and forests reserves, and coastal and urban land should reside with CMAs. However, there are a number of practical and legislative issues to be resolved before this can be progressed. In the interim, to facilitate an integrated approach, CMAs will consult with licensees where required in the implementation of the regional RHS and will provide advice to NRE on licence conditions and management. Any changes to licence conditions will only be made in consultation with licensees during the term of the licence or on the transfer or renewal of licences. As a general rule, new licences will be limited to grazing. Cultivation will only be permitted on the recommendation of the CMA.

As a matter of principle, the responsibility for the management of Crown water frontages outside parks and forests reserves, and coastal and urban land should reside with CMAs as caretakers of riparian land to facilitate an integrated approach to the management of riparian land.

NRE will work with CMAs to resolve the practical and legislative issues associated with the transfer to CMAs of responsibility for the management of Crown water frontages outside parks and forests reserves, and coastal and urban land.

Any changes to licence conditions will be based on the recommendations and priorities of Crown frontage reviews and will only be made in consultation with licensees or on licence transfer or renewal.

Victorian River Health Strategy 97 Use of exotic species Whilst a lot of community effort is going into the protection and restoration of riparian land, it is also important that 4 further degradation is prevented wherever possible. Degradation can occur through clearing native vegetation (addressed above), weed invasion and the deliberate planting of exotic species, including ash, elm, poplar and particularly willows. The use of willows was in the past considered to be beneficial for stabilising river banks and preventing bank erosion, and government funding was used to plant willows in many areas. It is now recognised that planting willows has resulted in a decline in the environmental value of riparian land and has also exacerbated flooding in many areas. Willow removal and replacement is now a major river restoration activity in many areas of Victoria. The potential damage that can be caused by willows has been recognised and they are listed as a Weed of National SECTION 4 Significance (with the exception of weeping willow, pussy willow and sterile pussy willow). The Weeds of National Significance - Willows (Salix taxa, excluding S. babylonica, S. calodendron and S. reichardtii) Strategic Plan outlines a range of actions to stop further spread, manage existing areas of willows, prevent their importation and gain community support in management of willows.

Planting exotic species on riparian land will be actively discouraged and actions to contain or remove weed Specific Management Issues infestations will be implemented within the context of river restoration priorities.

Government funding will not be provided for planting any exotic species on riparian land.

Consistent with the National Weed Strategy and the Victorian Pest Management – A Framework for Action, NRE will identify new and emerging weed species that threaten riverine ecosystems.

8.3.5 Increasing Community Awareness The protection and/or restoration of riparian land cannot be implemented without an active partnership between the community and Government. To encourage the development of this partnership, it is critical that the significance and functions of riparian land are well understood and appreciated by both riparian land managers and the general community, and that the issues raised by landholders are also understood.

CMAs will develop programs to increase awareness within the general community of the role of riparian land and to provide detailed information to riparian land managers with the aim of increasing participation and program ‘ownership’.

98 Victorian River Health Strategy 8.4 FLOODPLAIN LINKAGES Whilst all of the above material refers equally to floodplain and non-floodplain riparian land, it is worth especially highlighting the concept of enhancing floodplain-river linkages. This is because there is a separate planning framework available that is well suited to maximising floodplain values by addressing this issue. Reduced linkages between river and floodplain are an outcome of water regulation and extraction which reduce flooding, of actions taken to protect property from flooding, mostly by building levees, and also of laser levelling on private land which infills floodways. There are myriad environmental consequences for both the floodplain system and the river, and there can also be social and economic consequences as the floodwaters are excluded from their natural floodplain and as a result can cause flooding in other, unprotected, areas. The concept of defining the riparian zone to include the areas of floodplain is very new in river management. The integration of management of the river and this extent of riparian land will require a considerable shift in our thinking and practice over time. The aim is that in the longer term, rivers and the floodplains will be managed as an ecological entity with the floodplain providing organic inputs to the river and high quality habitat, and the river providing water, nutrients and sediment. Whilst this is unlikely to be fully achieved in the short term, the management framework described above together with the Regional Floodplain Strategies that have already been developed by the CMAs should provide clear goals and objectives for riparian land, and should align the policies, statutory planning arrangements and implementation activities to facilitate this outcome. The Victoria Flood Management Strategy provides a statewide framework for managing floods and a context for the development of regional Floodplain Management Strategies by CMAs and Melbourne Water. A key floodplain management objective is to maintain and enhance the inherent capacity of floodplains to convey and store floodwaters especially in floodway areas. This general principle of ensuring that floodplains are managed to fulfil their natural functions is carried through the other objectives of the Flood Management Strategy and is a clear message throughout the development of policies and guidelines. The Regional Floodplain Strategies describe the region’s floodplain assets and issues, and set in place objectives, priorities, targets and management programs. They carry throughout, the principle that floodplains should, wherever possible, be allowed to flood naturally and that statutory planning processes should not permit any buildings or development on the floodplain in areas which are incompatible with its principal purpose of conveyance of floodwaters, especially in floodway areas. They provide the mechanism for ensuring that the linkages between the floodplain and the river are protected or enhanced. The water allocation processes outlined in Chapter 6 provide for protection of some form of the flooding regime, an essential step in maintaining linkages. The final piece of the puzzle is the identification by CMAs of areas of floodplains that are a high priority for restoration in order to provide the linkages for habitat and organic inputs to the river required in an ecologically healthy system. Identification of high value floodplains for restoration activities will be encapsulated in the regional RHSs, and priorities assessed along with other river health activities.

The riparian caretakers will protect existing floodplain-river linkages and will identify priority areas and management actions for the restoration of linkages within the context of waterway restoration priorities.

Victorian River Health Strategy 99 9. Management of the River Channel 4 9.1 IMPORTANCE OF THE RIVER CHANNEL Rivers are dynamic systems that will, through time, change course through the processes of erosion, sedimentation and avulsion. These are natural processes. However, because of activities in the catchment, these processes may be occurring at an accelerated rate, and because of human settlement and use of the floodplain, their impact on regional communities can be significant. Floods can cause significant bed and bank erosion, which can often lead to loss of major public assets (e.g. roads and bridges) and of significant areas of private land. The damage to regional communities from

SECTION 4 these events can be devastating. For example, river-related damage to public and private assets in the 1998 East Gippsland floods was estimated at $39.6 million and the regional community is still recovering from that event. As a result of this high potential for damage, there has always been great community interest in the condition and management of the river channel. As a consequence, river management in the past focused mainly on controlling bed and bank erosion and reducing the occurrence of floods and flood damage. Thirty to forty years ago, sections of rivers were straightened and woody snags pulled out in the hope that this would increase the channel capacity, more effectively convey water and reduce flooding. The reality was that these activities often tended to increase bed and Specific Management Issues bank erosion, in some cases quite dramatically, and often resulted in major environmental damage. Whilst there is still a major need to manage bed and bank erosion and to protect high value public infrastructure assets, there is also a much better understanding of the importance of the river channel, from an environmental perspective, in providing instream habitat. The components of the channel that are important in determining the quality of instream habitat are: • substrate type and diversity, such as the presence of pools and riffles, cobbles, sand; • channel shape, which influences aspects like water depth, velocity and quality as well as the presence of backwaters and undercut banks; • presence of woody debris; • presence of riparian vegetation; and • connectivity – the degree to which there is access for biota, organic material and sediments to move both along the river and laterally into floodplains and wetlands. Aquatic flora and fauna have fairly distinct physical habitat preferences within rivers which can generally be defined by a combination of these habitat features. Changes to the presence or amount of any component of physical habitat will influence the flora and fauna that survive there. Issues or activities that can impact on the capacity of the channel to provide instream habitat include: • bed and bank erosion. In addition to the potential loss of public and private assets, bed and bank erosion can cause loss of habitat and lead to sediment deposition. The overall effect will be to gradually widen the river and make it shallower. • mobilisation and deposition of sediment. Increased sediment occurs in rivers mostly due to erosion of the bed and banks and within the catchment. Once in a stream, sediment will either settle out or be transported gradually downstream or onto floodplains. As this occurs, major habitat features like pools and riffles become covered and disappear over time. Sediment slugs up to 3 m in depth are moving slowly down many rivers in Victoria. • removal of instream woody debris. The removal of woody debris (snags) or desnagging occurred to provide boat passage and to increase the channel capacity and reduce flooding. However, desnagging results in the complete absence of a highly valuable habitat, especially in large lowland rivers where snags can be the only stable substrate and instream source of nutrients. Snags provide physical habitat that may be crucial for individual species; for example, no snags means no Murray cod. • activities that physically disturb the substrate, such as dredging or bridge building.

100 Victorian River Health Strategy • introduction of barriers. Barriers within the river can prevent upstream and downstream movement of fish and other biota, and can interrupt transport of organic material and sediment. Barriers include weirs, on-stream dams, causeways, and even culverts if the drop is too great or the current is too fast or too shallow. The most obvious and dramatic impact is the direct exclusion of migratory fish moving to or from habitat essential for completion of their life cycle, such as spawning grounds in estuaries or headwaters. Barriers can also be introduced which prevent lateral movement onto the floodplain and associated wetlands. These structures include flood levees, erosion control structures and regulators.

9.2 MANAGEMENT ISSUES There are a number of issues associated with the management of the river channel. These include: • making decisions on how much investment should be put into: - protection of assets from bed and bank erosion which requires decisions on: the level of risk acceptable to the community, and the quality of the work undertaken; - restoration of instream habitat and connectivity to protect and restore environmental values; and - relative importance of asset protection and restoration activities; and • preventing damage to the channel and its capacity to provide instream habitat from other activities. The final aspect of management within the river channel is the active management of fish resources which may be an asset and/or a threat to river health. This includes the management of non-indigenous fish, stocking and fishing. Recreational fishing in inland waters and recreational and commercial fishing in estuaries are both important activities, socially and economically, and need to be managed in a sustainable way.

9.3 MANAGEMENT OF THE RIVER CHANNEL Solving the issues outlined above requires a management framework that has: • clear management objectives and priorities for protection and restoration based on consideration of the value of the community assets and the level of acceptable risk; • consistent guidelines governing the level and quality of protection and restoration activities; and • clear policies, relating to the management of other activities, that are aimed at preventing damage to the channel.

9.3.1 Priorities for Protection and Restoration Priorities for investment in channel works either for asset protection or for restoration will be set within the broader context of integrated waterway management provided by the regional RHSs described in Chapter 5. The regional RHS identifies the ecological, economic and cultural assets of all the major river reaches in a river system. These include public infrastructure assets. The regional RHS establishes where the current condition and/or management of the channel is a threat to these assets and where there may be major opportunities for habitat restoration. In doing this, the regional RHS establishes management objectives for major river reaches and sets priorities for: • protection of public infrastructure assets; • protection of other environmental and social assets; and • restoration of instream habitat and connectivity.

Priorities for instream activities aimed at the protection of public infrastructure and/or restoration of instream habitat and connectivity will be established through the regional River Health Strategy planning process.

Victorian River Health Strategy 101 9.3.2 Protection of Assets Where the protection of any assets, including public infrastructure, is considered to be a high priority within the regional 4 RHS, the major issue to be considered is the level of protection to be provided. This will be true for any high value asset associated with a river reach but is particularly relevant when the asset to be protected is public infrastructure. A risk-based approach will be taken when determining the level of asset protection to be provided. This will include consideration of: • the value of the asset; SECTION 4 • the consequences to the community if it is lost or damaged; • the likelihood of loss or damage; and • the costs of the protection work including both financial and environmental costs. For example, a freeway bridge is a major public infrastructure asset that is of very high value to the community. Its loss or damage would result in major community disruption and high replacement or repair costs. A high level of protection (e.g. withstanding a 1 in 500-year flood event) may be warranted in this case in contrast to a situation such as the

Specific Management Issues protection of a bicycle track, which may justify a much lower level of protection. Whilst the level of asset protection provided will be determined within the regional RHS process, some statewide guidance is required to ensure consistency of approach across regions.

Where protection of assets is considered a priority within the regional RHS, the appropriate level of protection to be provided will be determined using a risk analysis approach.

NRE in partnership with the CMAs and MWC will develop a consistent statewide approach to determining appropriate levels of asset protection.

It should be noted that funding provided by Government for activities related to river protection and restoration will be directed primarily towards activities with public benefit. This is discussed further in Chapter 11.

9.3.3 Restoration Activities Regional RHSs will indicate priorities for instream restoration. The types of activities that would be undertaken include: • restoration of instream habitat, such as instream revegetation, resnagging and reconstruction of substrate diversity. The major issue to be considered here is the standard at which the work is undertaken. This is discussed in section 9.3.4; • restoration of connectivity, generally by the provision of fish passage; and • control of pest populations of aquatic flora or fauna.

Habitat restoration Fish passage One of the key within-channel restoration activities is the restoration of fish passage where a barrier has been constructed in the past. Barriers include any obstructions that are placed across the river. This includes obvious barriers such as dams and weirs but can also include smaller structures such as culverts and road crossings. In addition, fish passage can be inhibited by water quality problems, such as a stream of unnaturally cold water occurring as a result of dam releases.

102 Victorian River Health Strategy Whilst, in general, priorities for restoration will be determined within the regional planning process, there are several areas where priority setting is initially undertaken at the State level with these priorities then being fed into the regional planning process. These include the determination of Heritage Rivers, sites of significance and the presence of rare or threatened species. The determination of priorities for restoration of fish passage is undertaken at the State level because it needs to consider inter-basin issues and the conservation status of fish species. Criteria for determining priorities for the restoration of fish passage in Victoria were determined as a part of the State Fishway Program and are listed in Box 9.1. The State Fishway Program, a government funded partnership between NRE, Melbourne Water, CMAs and water authorities, was established to provide fish passage at priority barriers. To date, works at 58 fishway sites have been completed for a gain of at least 4500 km of riverine habitat. There are, however, many important remaining sites at which fish passage is necessary. In determining how fish passage will be provided, consideration needs to be given to whether: • the fish barrier should be removed; • the barrier can be modified structurally/operationally; or • a fishway should be built. Where a barrier is considered to be a high priority for the provision of fish passage, a broad feasibility analysis will be conducted to consider the advantages of one management action versus another.

Box 9.1 Criteria for Establishing Priorities for Fish Passage across Victoria

Statewide priorities for fish passage are determined on consideration of: • native fish species likely to benefit (high conservation status or migratory species will be highest priority); • length of river and area of habitat made accessible to fish; • quality of habitat made accessible to fish; • proximity to the sea or River Murray (the number and diversity of native fish that would benefit is highest at the lower end of catchments); • complementary restoration programs being undertaken within the basin; • an assessment of adverse effects such as spread of noxious/predator species; and • a feasibility analysis that accounts for issues such as total cost of works, availability of independent financial support, enhancement of recreational/commercial fisheries, drown-out weir frequency, and other management options such as modification or removal of the structure. Priorities are set by a panel of fish biologists in consultation with the relevant water authorities and CMAs. Priorities have been set across all the barriers listed in the current inventory of potential barriers to fish movement in Victoria (NRE 1999). This has identified 2438 potential barriers, with farm dams and weirs making up the largest proportion of instream barriers in the State. There are also a significant number of stream gauging sites (weirs specifically designed for streamflow monitoring and major water storages with a stream gauging function) which comprise about 30% of the total number of barriers. Large numbers of culverts and road crossings were not generally recorded, though these in many cases form an effective barrier to fish movement.

Victorian River Health Strategy 103 Removal of barriers Removal of barriers may be performed for a number of economic or environmental reasons, though providing fish 4 passage may be a key driver. Any decision to remove a barrier will only be made after a process aimed at determining whether the structure is redundant to the community. This process will examine the utility of the structure against: • its original objectives (e.g. water supply); • other social issues (e.g. community support, potential loss of recreation or amenity, safety); • economic issues (e.g. cost of maintenance of present structure, liability); and • environmental values (both positive and negative, such as protection of native fish populations from pest species). SECTION 4 NRE in partnership with CMAs and RWAs will undertake a scoping study of barriers across Victoria and will: • establish a register of potentially redundant weirs by December 2002; • identify and prioritise them for further investigation; and • develop best management practice and guidelines for existing weirs by December 2002.

In addition, the ongoing need for structures will be examined by water authorities as part of their asset maintenance program. Specific Management Issues

When water regulating structures are due for major maintenance work, consideration will first be given to the need for the structure. Water authorities will conduct a community process to determine if the structure is required. • If there is no ongoing need, options for the removal of the structure will be considered. • If an ongoing need is demonstrated, then refurbishment should be undertaken at the current best practice standards including environmental standards.

Altering design and/or operation of structures In some instances, altering the design or operating procedures at regulating structures can provide ecological benefits such as enhancing fish passage, increasing variability of flow downstream of large storages to enhance bank vegetation, providing backwaters for larval fish or invertebrates, promoting growth of bio-films and providing ecological triggers for fish movement. Design alterations include: • lowering the height of structures to increase drown out; • modifying structures to increase flow variability; and • replacing a single large weir or regulating structure with several small structures which fish can pass. This may reduce the net impact on fish passage while still achieving the original purpose of the works. Operational modifications include: • increasing the frequency and duration of gate opening or weir pool draw down, especially when this is timed to coincide with periods of fish movements; • flow regulation and controlled releases from upstream storages designed to inundate low level weirs to facilitate fish passage; and • varying the size and rate of releases to met ecosystem needs.

Where the operation or design of a structure has been identified as a priority issue, authorities will review the operation of their structures with the aim addressing the problem wherever feasible.

104 Victorian River Health Strategy Installation of fishways Where fish passage has been reduced or obstructed and removal or modification of the barrier is not possible, then the use of fishways will be considered. Where fishways are constructed, there is a need to monitor fish passage to assess effectiveness and refine designs.

The State Fishway Program will continue to be implemented and will provide for: • the provision of fish passage at barriers which are considered a priority; and • monitoring the effectiveness of fish passage works. All relevant authorities will be encouraged to consider the need for fish passage and to provide fish passage across any of their structures.

9.3.4 Quality of Restoration/Protection Work to be Undertaken Undertaking river restoration activities or providing an appropriate level of asset protection requires works to be undertaken within the river channel. This may involve a range of hard engineering works, particularly in the protection of public infrastructure, including alignment training (e.g. the construction of groynes or pile fields), bank protection (e.g. rip- rap), the introduction of rock chutes for gradient control or reinstatement of pool-riffles, or the provision of fish passage. Alternatively, it may involve soft engineering works such as resnagging rivers to provide fish habitat, revegetation or a combination of both. In recent times, there has been a move towards soft engineering works where these will achieve the objective of the restoration/protection works as they are considered to be more environmentally sensitive. Any works within a river channel have the potential to cause further damage to the instream ecosystem. It is therefore very important that all works are carried out to best environmental standards. The way in which these works are planned and the standard to which they are undertaken will determine both their success at achieving their objectives and their environmental acceptability. The quality of these works depends on: • design based on understanding stream ecosystem and geomorphic processes and causal factors. River works must be designed within the context of the geomorphology of the river system and an understanding of the ecological processes operating within the river otherwise they could fail or do further damage. • the environmental standard at which the works are implemented. River works can have the potential to damage the stream environment depending on the way in which they are undertaken. Therefore, they need to be undertaken to current best environmental standards. These are described in the Environmental Guidelines for River Management Works (Standing Committee on Rivers and Catchments 1990) and the SEPP (Waters of Victoria). Since publication of the Environmental Guidelines for River Management Works, there have been many advances in this area, particularly in development of techniques and approaches. Accordingly, these guidelines will be reviewed and updated to include recent advances in best environmental practice river restoration, and guidelines for installation of fishways will also be developed. • the technical standard at which the works are implemented. Works clearly need to be undertaken at the highest standard of quality given the desired level of protection. Current best practice standards are described in the Guidelines for Stabilising Waterways (Standing Committee on Rivers and Catchments 1991). These guidelines were developed in 1991 and should be reviewed to include the most up-to-date information. • the need for riparian restoration as an integral part of the design. The effectiveness of within-channel works can be greatly enhanced if complementary riparian works are undertaken at the same time. In many cases, they can fail to achieve their objectives if this is not included in the design.

Victorian River Health Strategy 105 The following principles will be adopted in the implementation of within-channel restoration works.

4 All protection/restoration works undertaken in the river channel must be: • based on a good understanding of the stream processes operating within the river system and the causes of the problem; • undertaken according to the best environmental standards; • undertaken to the best technical standard given the desired level of protection; and • designed with riparian restoration as an integral component of the work. SECTION 4 To assist in the implementation of these principles, NRE in partnership with MWC and the CMAs will update: • the Environmental Guidelines for River Management Works; and • the Guidelines for Stabilising Waterways, to include recent advances in particular in the areas of river restoration using soft engineering techniques of resnagging and revegetation. NRE in partnership with MWC and the CMAs will also develop guidelines for the installation of effective Specific Management Issues fishways, including monitoring. In addition, NRE will from time to time conduct technical audits of river restoration works undertaken by CMAs.

9.3.5 Protection of the Channel against Degradation from Other Activities There are a number of management activities that have in the past taken place within the channel of a river. A number of these can be detrimental either to the channel itself or to the instream habitat it provides. These activities include: • removal of woody debris; • undertaking works on waterways; • building dams on waterways; • mining; • clearing heavy aquatic plant growth; and • management of existing structures, such as flushing sediment from storages. It is important to ensure that there is clear direction on how these activities should be undertaken to minimise any possible future degradation and to provide protection of assets within the channel.

Removal of woody debris Large woody debris is a major habitat in rivers, providing shelter, food sources and breeding sites for a variety of instream biota. In the past, large amounts of woody debris were removed from rivers to provide for navigation and in the belief that this would increase channel capacity and reduce flooding. This was done without realising the damage that this removal would do to native species like the Murray cod.

106 Victorian River Health Strategy The demand for navigation has reduced considerably since paddle steamers plied the River Murray and we now have a much better understanding of the importance of large woody debris. We also have a much better understanding of river hydraulics and it is now recognised that the effect on flooding of wood in rivers was grossly overstated. Therefore, the following policy principle will be adopted.

Large woody debris shall not be removed from rivers unless it is demonstrated to be a serious threat to a high value asset or to human lives. Where this has been demonstrated, the option of realigning the snag will be investigated to retain as many of the ecological benefits as possible.

Undertaking works on waterways There are a number of works and activities undertaken by public authorities and landowners that can impact on waterways. These include: • road and bridge building; • stream access crossings; • bed and bank erosion control works; • stormwater outlets; • removal of invasive instream vegetation, such as Cumbungi; • stream clearing; • crossings of pipelines and other services across waterways; • stream deviations; and • dumping of rubbish. In the non-metropolitan regions of the State, application must be made to the CMA for approval for any works on waterways. In the Port Phillip and Westernport CALP region, this function is shared between Melbourne Water and Southern Rural Water. In granting approval for works on waterways, CMAs consider the: • potential to destabilise stream bed and banks; • potential to alter flood levels; • impact on riparian vegetation; • impact on instream habitat; • potential to affect water quality; • impact on cultural and heritage values; and • impact on general stream environment.

CMAs, MWC and Southern Rural Water will only give approval for works on waterways where they maintain or improve the environmental value of the site and surrounds, and are unlikely to create problems for stream instability, adverse off-site impacts or flooding problems.

CMAs may exempt from individual works approvals some works by public authorities or major utility companies, subject to specified conditions.

Victorian River Health Strategy 107 Dams on waterways The effect of dams on river flows is discussed in Chapter 6. Building dams on waterways also has the clear impact of 4 creating a barrier to fish passage. Even small structures such as culverts and stream gauging stations can restrict essential fish movements. The cumulative effects of a number of small dams in a catchment can result in local extinctions of some fish species in that area. Provision for fish passage is therefore an essential consideration for planners and designers of works on waterways. In Victoria, legislation is now in place that requires that fish migrations not be impeded and that a planning and approval process be followed prior to commencement of works.

SECTION 4 New dams on waterways that would be classified as watercourses or other waterways with high environmental values should only be considered for approval if there are unsuitable sites elsewhere and only if the stringent environmental requirements outlined in the draft ‘Licensing Guidelines for New Irrigation or Commercial Dams’ are met.

Any new structure, if required, will include adequate ongoing provision for fish passage.

Specific Management Issues Licensing authorities (RWAs and MWC) will refer any application for new dams to CMAs and NRE for advice on this issue.

Mining Major mining activities in the river channel have the potential to totally change the bedform of the river. This will have major impacts on instream habitat and biota and may trigger significant erosion events. Major mining activities that take place in rivers include: • eductor dredging, which has been banned in Victoria since 1990; and • sand and gravel extraction. It must be acknowledged that there are some cases where the extraction of sand or gravel from a river can provide benefits to the river, such as in the management of sand slugs caused by catchment erosion in the past. Given this, sand and gravel extraction may be undertaken in waterways where it is used by the CMA as a management tool for the protection of waterway assets. All other existing mining controls will continue to apply.

Management of existing structures The management regime of existing structures not only affects the environmental flow regime (see Chapter 6) but can also affect the channel downstream, causing bank erosion if not managed appropriately. In addition, storages are regularly flushed to stop the accumulation of sediment. This sediment is then washed downstream. Water authorities holding BEs are required as a condition of the BE to develop an environmental management program to minimise the impact of storage operation on the downstream environment.

All BE holders will prepare an environmental management program which will include assessment and management of: • the effects on the bed and banks of the waterway in the vicinity of the storage; • the effects on aquatic biota in the waterway; • operating practices to remove silt from the storage; • operating practices to manage water quality, including temperature, in the storage and in the waterway; • operating rules to control releases from the storage to the waterway; and • operating rules for managing flood flows through the storage.

108 Victorian River Health Strategy 9.3.6 Management of Fish Resources Recreational and commercial fisheries, while an asset in themselves, can include activities which may be detrimental to river health - such as fishing pressure, impact on native species or access routes along stream banks. These activities need to be considered within the broader framework of river health and managed appropriately. Non- indigenous species, whether introduced species of high recreational value (such as trout), native species stocked out of their normal range, or pest species (such as carp), can impact on river ecology. Currently, stocking of fish species is controlled through a process involving regional consultation committees and a statewide specialist committee which overall consider river health impacts together with recreational interests in accordance with national and statewide policy.

NRE will finalise statewide policy consistent with national policy for management of live aquatic biota and aquatic pests in Victoria by December 2002.

However, it is intended that stocking will be dealt with increasingly through the development of Fisheries Management Plans. These plans focus on the sustainable use and allocation of fisheries resources in rivers, lakes and impoundments and recognise that the health of aquatic ecosystems is fundamental to the health of the fishery and also that activities associated with fishing can have adverse impacts on the aquatic environments if not managed sensitively. They will be developed by NRE in consultation with CMAs and other key stakeholders, for all systems which sustain inland fisheries. They will be developed within the context of the regional river health framework in consideration of the social, environmental and economic assets of the river system.

Fisheries Management Plans will be developed progressively for all systems which sustain inland fisheries, within the context of the regional river health framework.

Management of inland fishing is undertaken through a range of mechanisms, including bag limits, catch quotas, size limits, gear restrictions, and seasonal/area closures, with the aim of ensuring that they are ecologically sustainable. One of the most difficult issues in the management of fish resources is the management of noxious species. Noxious fish, which include carp and gambusia, are listed under the Fisheries Act 1995 and once listed there are many controls over their handling. Management of populations of exotic species currently entrenched in Victoria is a very difficult task, as with terrestrial pests and weeds. Investigations into carp ecology and means of control are underway in Victoria, and also at a national level by CSIRO. In some cases, where populations of exotic species are a major threat to high value native flora and fauna communities, specific intervention programs may be undertaken to protect these assets.

Victorian River Health Strategy 109 10. Linked Ecosystems As discussed in Chapter 1, the scope of the VRHS reflects a river’s functioning as an ecosystem: 4 A river, stream or natural waterway includes the channel, the riparian zone which takes in the regularly wetted floodplain, any associated floodplain wetlands and the estuary or terminal lake. Whilst it is not intended that the VRHS cover all issues associated with management of estuaries, terminal lakes and floodplains, it does cover those aspects that either affect or are affected by river condition and are therefore associated with the health of the river system overall. This chapter summarises how the management framework and policies outlined in the VRHS provide for these linked ecosystems. It also indicates other relevant policies that direct other SECTION 4 aspects of the management of these systems. In general, the needs of these linked ecosystems are considered within the regional RHS framework by the identification of: • environmental, economic and social assets – estuarine, floodplain or associated wetlands and terminal lakes of high environmental value are identified through this mechanism (see Box 5.1); and • river management related threats to these systems and opportunities. Specific Management Issues The identification of the assets and threats as outlined above will ensure that they are considered during the development of targets and work programs in the action plans. Although there is an appropriate framework in place, the management of linked ecosystems is often limited by the lack of knowledge of the ecological functioning of these ecosystems. Management arrangements for linked ecosystems are described in Table 10.1.

Linkages with broader catchment management programs The management framework has been designed as a major sub-component of the RCS. Through this and the regional RHSs, the issues of land use and management as they affect the river are considered, and targets and work programs for these activities are established. These are described in more detail in Chapters 5, 7 and 8.

110 Victorian River Health Strategy Table 10.1 Management arrangements for linked ecosystems

Linked Complementary Ecosystems Relationship to River Provisions within VRHS Strategies

Estuaries Affected by: • Changes in flow regime • estuarine needs included in Victorian Coastal Strategy environmental flow assessments (where known) SEPP (Waters of Victoria) • Changes in water quality (e.g. • high value estuaries included in increasing salinity and nutrients) water quality and salinity plans Coastal Action Plans • Sedimentation • general erosion control activities Management plans for undertaken as a result of priorities specific estuaries established in regional RHSs • Barriers • provisions for fish passage Ramsar Strategic (estuarine barriers are generally of Directions Statement high priority because of the large increase in accessible area that result from their removal) •Premature opening of estuaries Dealt with in specific regional processes Floodplains Affected by: • the needs of floodplain wetlands Victoria Flood and • Changes in flow regime included in environmental flow Management Strategy Associated assessments (where known) SEPP (Waters of Victoria) Floodplain • Disruption to river linkages • the preservation and restoration of Wetlands Victorian Biodiversity river–floodplain linkages Strategy considered in principles for the management of riparian land and Victorian Planning in provisions for fish passage Provisions • Changes in water quality (e.g. •included in water quality plans and Ramsar Strategic increasing salinity and nutrients) salinity management plans (where Directions Statement this is an issue) • Sedimentation • general erosion control activities Specific management undertaken as a result of priorities plans established in regional RHSs

Terminal Affected by: • needs included in environmental SEPP (Waters of Victoria) Lakes (In • Changes in flow regime flow assessments (where known) and Schedule for the Western Western District Lakes •included in water quality plans and Victoria) • Changes in water quality (including increasing salinity and salinity management plans (where nutrients) this is an issue) Ramsar Strategic • Barriers • provisions for fish passage where Directions Statement a priority • Sedimentation • general erosion control activities Specific management undertaken as a result of priorities plans established in regional RHSs

Victorian River Health Strategy 111 5 MANAGEMENT ARRANGEMENTS

This section details the institutional arrangements for the management of rivers, and covers issues such as capacity building, monitoring and accountability. SECTION 5 Management Arrangements

112 Victorian River Health Strategy 11. Management Arrangements This chapter outlines the institutional arrangements for the management of river health within Victoria, including the roles and responsibilities of the major players and the funding mechanisms. The health of a river system is a cumulative outcome of the combined impacts of land and water management within the catchment and the river itself. Therefore, the management of river health in Victoria is undertaken within the broader ICM context. It is integrally linked into broader programs of land and water management through the regional planning framework based on the RCSs and their component regional RHSs described in Chapter 5. As part of the broader program of catchment management, the management and restoration of river health is undertaken as a partnership between governments and the community with clear agreed roles for each. The general roles of the major groups within this partnership are described in Box 11.1.

Box 11.1 General Roles of Major Groups in River Restoration and Catchment Management

Group General Roles

Commonwealth • contribute funding to States, regional authorities, groups and individuals to achieve Government national objectives for river restoration and catchment management • facilitate national or interstate coordination where this is necessary • invest in the development of better management principles, tools and systems • improve the knowledge base through strategic research and development • improve incentives especially in areas of Commonwealth responsibility • ensure that the wider Australian community is well informed about natural resource management issues • facilitate the monitoring of the effectiveness of natural resource management at appropriate scales • oversee the implementation of relevant Commonwealth legislation including the Environment Protection and Biodiversity Conservation Act 1999 • ensure that Australia meets its obligations under international agreements • identify issues of national significance

State Government • set statewide policy and strategic directions for river restoration and for catchment and environmental protection • establish legislative frameworks • establish effective catchment/regional institutional arrangements • provide funding to achieve State and regional priorities • provide relevant advice, and undertake research and monitoring, planning, extension, on-ground works and some referral and enforcement functions to support regional communities • participate in effective intergovernment processes and national approaches where necessary, and implement State responsibilities under nationally agreed strategies

Regional Catchment • develop, in partnership with the community and other stakeholders, RCSs and Management Authority component RHSs and other action plans which define the vision for the catchment and set targets for land and water management • provide advice to the State Government on both Federal and State resourcing priorities at a regional level • develop and implement measures for river protection and restoration to implement RHSs and RCSs

Victorian River Health Strategy 113 Box 11.1 cont.

5 Group General Roles

Regional Catchment • ensure community involvement in river and catchment management Management Authority • undertake floodplain management in accordance with the Victoria Flood (cont.) Management Strategy • develop partnerships between resource managers in the catchment, and coordinate activities impacting on river health

SECTION 5 • provide a focus for regional investment in river and catchment management • monitor the condition and management of the land and water resources in their region • provide community education • act as a communication conduit between regional communities and Government on issues relating to land and water management

Regional Resource • participate in the development and implementation of RCSs and regional RHSs Managers (including • act in partnership with CMAs to implement RCSs and RHSs where appropriate Management Arrangements water authorities and • undertake all activities which can potentially impact on rivers to best management government land practice standard, in accordance with ‘duty of care’ responsibilities and good managers e.g. Parks corporate citizenship Victoria, NRE) • recognise their dependence on a healthy resource base and their potential impact on it, and manage in accordance with the principles of ecologically sustainable development • develop partnerships with other resource managers in the catchment to enhance project coordination and implementation

Local Government • work in partnership with CMAs to set priorities for and implement RCSs and regional RHSs • incorporate river restoration and catchment management objectives, priorities and actions into statutory planning processes • undertake floodplain management and flood warning in accordance with the Victoria Flood Management Strategy • develop and implement urban stormwater plans in an ICM context • manage rural drainage schemes where appropriate • facilitate local industry involvement in river restoration and catchment management activities • provide local support for local action groups • undertake all activities which can potentially impact on rivers to best management practice standard, in accordance with ‘duty of care’ responsibilities and good corporate citizenship

Industry • manage in accordance with the principles of ecologically sustainable development • minimise their impact on the environment by the implementation of best management practices, in accordance with ‘duty of care’ responsibilities and good corporate citizenship

Individuals • participate in regional planning, priority setting and the implementation of work programs related to river management and restoration • participate in community groups (e.g. Landcare, Waterwatch) aimed at monitoring river health or undertaking restoration projects in priority areas • manage their own enterprises in ways that acknowledge their ‘duty of care’ and their role in the stewardship of natural resources

114 Victorian River Health Strategy The roles described in Box 11.1 are quite general. The effectiveness with which they are undertaken will depend on: • the detailed institutional arrangements put in place to deliver river restoration and catchment management which must clearly define the responsibilities and accountabilities for the management of activities which impact on river health; and • the effectiveness of the partnerships between the various groups which either impact on or contribute to the management of river health.

11.1 INSTITUTIONAL ARRANGEMENTS

11.1.1 Statewide Arrangements There are two major groups that assist the State Government in its role in river restoration and catchment management. These are:

Department of Natural Resources and Environment NRE is the government department responsible for the integrated management of Victoria’s natural resource base. In the area of river restoration and catchment management, NRE, predominantly through its Catchment and Water Division: • advises Government on statewide policies and strategic priorities for river restoration, catchment management and water allocation; • establishes consistent processes and standards for the planning and implementation related to river restoration and catchment management; • manages government investment in river restoration and catchment management activities to enhance the public good; and • provides oversight on behalf of Government of rural and urban water authorities and CMAs. In addition, staff in Parks, Flora and Fauna (PFF) Division and Fisheries Division provide advice on biodiversity issues, fisheries management and priorities into State and regional planning processes, and Aboriginal Affairs Victoria staff provide guidance on Indigenous issues. Regional staff in Parks Victoria and in the PFF, Land Victoria and Forests sections of NRE manage Crown land, parks, conservation reserves, Heritage Rivers, Natural Catchment Areas and State Forests including floodplain forests. Regional staff in the PFF, Fisheries, and Catchment and Agricultural Services sections provide advice and undertake extension activities on issues relating to land, water and biodiversity management.

Environment Protection Authority EPA is responsible for enabling a safe and clean environment for Victorians. EPA is an independent body, which acts as a ‘watch-dog’ for the environment by working with governments, businesses and communities to minimise the impacts of wastes to the environment. This is achieved through a range of mechanisms including partnerships, education, monitoring, auditing, reporting, regulation and enforcement. In relation to river and catchment management, EPA: • through the SEPP (Waters of Victoria): - sets beneficial uses of water environments and the level of environmental quality needed to protect them. These environmental quality objectives provide guidance to regional planning processes on the long term desirable outcomes for river and catchment management to protect the various beneficial uses of the water resource, and - sets specific policy direction on the management of various activities which impact on water quality;

Victorian River Health Strategy 115 • uses mandatory and regulatory functions, such as licensing and other discretionary tools (e.g. cleaner production and guidance for industries), to assist in the achievement of water quality objectives; 5 • acts in partnership with NRE and regional bodies to monitor water quality and river health; • enables independent audits of impacts on the environment and the protection of beneficial uses; and • participates in monitoring river water quality and preventing pollution. In addition to NRE and EPA, the Government receives advice from two major peak councils concerning issues that may impact on the management of rivers and catchments. They are: • the Victorian Catchment Management Council, which provides statewide advice on matters related to natural resource management. The Council advises Government on the condition of land and water, the priorities for SECTION 5 catchment management and the priorities for research and investigation; and • the Victorian Coastal Council which provides advice to Government on strategic planning and management of the Victorian coastal and marine environment.

11.1.2 Regional Arrangements

Management Arrangements At the regional scale, the key organisations within regions for integrated catchment management and river restoration are the CMAs. As outlined in Box 11.1, CMAs are responsible for the development and coordination of implementation of the RCSs and for the involvement of regional communities in catchment management. In addition to these broader functions, CMAs in Victoria are also responsible for providing services related to integrated waterway and floodplain management. These focus on the maintenance and improvement of river health and the minimisation of flood risks and costs whilst preserving the natural functions of the floodplain. These services relate to: • waterway management; • coordination/management of water quality; • coordination/management of floodplains in accordance with the Victoria Flood Management Strategy; and • coordination/management of rural drainage including management of regional drainage schemes (where relevant). In embracing the concept of CMAs, one of the main aims of Government has been to fill a major institutional gap that commonly occurs in the management of rivers around the world; that is, whilst many groups are responsible for activities that impact on rivers, no one group has had the overall responsibility for the resultant environmental condition of the rivers and their linkages to the sea. CMAs have been effectively established in the role of ‘caretaker of river health’ to fill this gap. They have been given responsibility for a range of functions which directly impact on rivers (as listed above) and will be expected by Government to show leadership on the management of river health in their region. Therefore, they have been given the lead role in the major functions which integrate all catchment activities having an impact on river health. These are: • the development of regional RHSs (under the umbrella of the RCS) which: - integrate the management of impacting factors (e.g. flow, water quality, riparian land, catchment land use, instream habitat and floodplain linkages), and - set priorities for river restoration, taking into account environmental, economic and social issues; and • reporting on river health.

116 Victorian River Health Strategy These responsibilities ensure that there is an integrated overview of all activities impacting on river health and provide reporting on the cumulative outcomes of all those activities. In addition, to consolidate the role of the CMA as river health caretaker, the Government has recently transferred the responsibility for licensing of works on waterways from the RWAs to the CMAs. To further consolidate this role, Government will: • make arrangements for the transfer of management of Crown frontage; and • make CMAs responsible for the coordination and implementation of Heritage River Management Plans where required. However, it should be noted that CMAs do not have responsibility for every function which could directly impact on river health. The responsibilities for all specific functions which impact on river health in regional Victoria are given in Appendix 3. One of the significant areas where CMAs do not have lead responsibility is that of water allocation. However, they are viewed as a major stakeholder in water allocation decisions and will, therefore, have a major role in decisions on BEs and SFMPs. As a result of the recent Farm Dams Review, CMAs will undertake the following roles: • act as a referral authority on applications for licences to take and use water and construct dams; • for SFMPs: - identify priorities for SFMPs, and - advise Government on membership of consultative committees; • comment to Minister on draft SFMPs; • oversee implementation of SFMPs, including formal receipt of annual report; and • ensure that the SFMPs integrate with other catchment and river management strategies. In addition to the above, the CMAs are also responsible for liaising with Regional Coastal Boards to ensure a seamless integration between the management of rivers and catchments and the management of estuaries and the coastal environment. Regional Coastal Boards are advisory bodies established to develop Coastal Action Plans within their region, and to facilitate the implementation of these plans and the Victorian Coastal Strategy. However, whilst Government has established the CMAs in the lead role of caretaker of river health, this is not intended to absolve others (e.g. regional resource managers, industry and land managers) from their responsibilities to undertake their businesses in ways that recognise their dependence on a healthy resource and their potential to impact on river health. It is expected that they will undertake their business to ‘best environmental management standards’ in accordance with their ‘duty of care’ responsibilities and recognising their role in the stewardship of natural resources.

In future years, Government will continue to review the management responsibility for the various functions that impact on river health, with a view to further consolidating CMAs in the role of ‘river health caretaker’.

It should be noted that these institutional arrangements apply to regional Victoria only. The situation is different in the Greater Melbourne area. This is discussed below.

Victorian River Health Strategy 117 11.1.3 Arrangements within the Port Phillip and Westernport CALP Region The institutional arrangements for river and catchment management in the Greater Melbourne area are different to 5 those in the rest of Victoria in that the two roles of: • development and coordination of implementation of the RCS; and • provision of integrated waterway and floodplain management services, are separated. The first is undertaken by the Port Phillip and Westernport CALP Board and the second is provided in an expanded way by Melbourne Water for the majority of the region. However, there are sections of the Port Phillip and Westernport CALP region for which, currently, there is no waterway manager. These include the Werribee and Upper Maribyrnong catchments and some areas of the Mornington Peninsula. SECTION 5 The reasons for this are largely historical and the current arrangements are viewed as inadequate. However, the Government recognises that the model for river and catchment management, which is highly successful in regional Victoria, may not translate easily into the metropolitan region which has some unique challenges. These include: • a population of between 3.4 and 3.5 million which may require different models of community engagement than those used in regional Victoria;

Management Arrangements • the coordination of all or part of 38 local councils; • the need to provide services to, and manage the impact of, rapid urban growth in a number of areas; and • the need to provide integrated catchment management to two highly sensitive environmental areas – Port Phillip and Western Port bays.

Options for providing an integrated approach to the management of the rivers and catchments feeding into Port Phillip and Western Port Bays will be explored by NRE, the Port Phillip and Westernport CALP Board and Melbourne Water acting in partnership.

In developing these options, NRE, Port Phillip and Westernport CALP Board and Melbourne Water will consult with key stakeholders, such as Southern Rural Water, where appropriate. Pending this options report, the policy statements in the VRHS which provide direction to CMAs as the statutory waterway managers will also apply to Melbourne Water in their role as waterway manager as outlined in the Melbourne and Metropolitan Board of Works Act 1958. This will be refined in the process of determining appropriate institutional arrangements for the Port Phillip and Westernport CALP region.

118 Victorian River Health Strategy 11.1.4 Interstate Arrangements There are a number of rivers in the State where there is a need for coordination between Victoria and other States to ensure a whole-of-catchment approach to river management. These include the rivers in the north of the State which flow into the River Murray which can therefore impact on the condition of the Murray, and rivers in eastern Victoria, including the Snowy River, where the river source is situated in New South Wales. The need for interstate coordination has been recognised and arrangements for both these areas have been established. In relation to rivers flowing into the River Murray, Victoria is a member of the Murray-Darling Basin Ministerial Council which jointly determines policies and authorises planning and management of natural resources for the benefit of the Murray-Darling Basin. Arrangements for the Snowy River have been put in place by formal agreements between Victoria, New South Wales and the Commonwealth Government. The other rivers in eastern Victoria are covered through an arrangement between the East Gippsland CMA and its counterpart in New South Wales.

11.2 EFFECTIVE PARTNERSHIPS The State and regional management arrangements outlined above, together with the regional planning framework, provide: • clarity about the roles and responsibilities of those involved in activities which can impact on river health; • the means for integration of these activities to achieve agreed river health outcomes in an ICM context, considering the economic, environmental and social issues; and • integrated monitoring to assess the effectiveness of the overall suite of activities undertaken on rivers. However, none of it will work without the full, ongoing commitment and input from regional communities, local government, regional resource managers, and the State and Commonwealth Governments.

11.2.1 Regional Communities Any improvement in the condition of Victoria’s rivers will only occur if regional communities are fully engaged and committed to this as a long-term objective. One of the original objectives in the establishment of the CMAs was to provide the mechanism for strong, ongoing community involvement in land and water management. Their structure and modus operandi have been designed to facilitate this. Consequently, CMAs can and will ensure that regional communities are engaged in the planning and implementation of river health programs. This occurs at four levels and, at a minimum, includes the following: • In the development of regional RHSs, CMAs, at a minimum, consult with their Implementation Committees, farmer groups, Landcare and Waterwatch groups, local Indigenous groups, local conservation groups, local government and relevant regional resource managers, the Coastal Board, the EPA, and relevant industry, recreation and service groups, and ensure a period of public consultation. • In the development of action plans, CMAs ensure that all relevant stakeholders are represented in the planning process and that plans have a period of public comment. • In the development of sub-catchment plans and work programs, CMAs ensure that Implementation Committees are involved and that all riparian land managers have the chance to be consulted and involved. • In undertaking any works in high priority areas, CMAs consult with individual land managers and enter into agreements where appropriate.

Victorian River Health Strategy 119 In addition to these mechanisms for community involvement in decision-making on river health, CMAs will establish programs to increase community awareness of river health and to encourage greater community participation in 5 management programs related to river health.

CMAs will develop programs to encourage greater community participation in river management and restoration.

Because of their unique structure and strong linkages to regional stakeholders and community groups, CMAs can also act as a communication conduit between community and the Government. Government recognises this and will

SECTION 5 consult with CMAs as the peak regional body for river health on any issues associated with river health.

11.2.2 Local Government Local government is a crucial player in the management of river health and in the broader context of catchment management. They are the organisations which can ensure that any new development is undertaken in ways that are consistent with river health and catchment management objectives via their statutory planning processes and

Management Arrangements development controls. In addition to this, they are responsible for the management of urban stormwater, some rural drainage schemes and aspects of floodplain management. The success of many catchment and river management activities relies heavily on the willingness and ability of local government to integrate catchment and river considerations into their processes and on their commitment to the overall river health outcomes. To date, there has not been a sufficiently strong focus on improving the linkages between local government and the catchment management framework to ensure that this integration does occur. Currently, the State section of the Victoria Planning Provisions requires local governments to be involved in the development of, and to take account of, the RCSs and their component action plans. The effectiveness of this involvement is enhanced where there are close relationships between councils and CMAs. However, across the State, there is considerable variation in how well the requirements of the RCSs and their action plans are integrated into local government planning processes. In many cases, this reflected a lack of clearly articulated land-use outcomes in the RCSs and their action plans. What is required is a planning framework and tools for local government that will formalise the land use requirements of the RCSs and their action plans in a way that will allow these requirements to be seamlessly translated into planning schemes.

Catchment and river management outcomes will be included in the local government planning system through: • developing and making better use of tools which facilitate greater integration of regional catchment and river management requirements into the planning systems of local government; and • identification and encouragement of more effective cooperation between CMAs and local government.

The Victorian Catchment Management Council in partnership with the Municipal Association of Victoria will finalise a planning model framework and will identify tools for local government to ensure a consistent approach to the implementation of RCSs in the planning system by December 2002.

120 Victorian River Health Strategy This model framework will be discussed at regional level and used in the review processes for both the RCSs and the Municipal Strategic Planning Statements which are currently underway and will be undertaken in future years. In addition, CMAs are encouraged to enter into joint projects with local government in priority areas wherever possible, and to develop an ongoing partnership approach with the local governments in their regions.

11.2.3 Regional Resource Managers There is a range of regional resource managers whose activities have the potential to impact on river health. These include statutory authorities (e.g. rural and urban water authorities and Parks Victoria), some NRE regional staff (e.g. Forestry Division, Land Victoria and Fisheries) and private plantation managers. These groups are highly significant in the management of river health in that they often manage large tracts of land within catchments, manage large diversions of water or input wastewater to rivers. In addition, there are others whose role includes environmental protection and biodiversity conservation (e.g. regional EPA and NRE Flora and Fauna staff). CMAs will ensure that these groups are involved in the development of the RCS, the regional RHS and relevant action plans, and in the development of the three-year rolling Regional Management Plan, which represents the formal funding agreement between Government and the region for the implementation of the RCS. Such involvement provides the means for the coordination of the relevant activities of these groups. In addition, these groups will be encouraged to undertake partnership projects with CMAs where these are a priority in the regional RHSs. Government expects that all regional resource managers will undertake their business in accordance with best environmental practice and corporate citizenship in relation to river health. Those that are accountable to Government will be required to report on their performance on river health in annual reporting mechanisms.

11.3 FUNDING FOR RIVER MANAGEMENT AND RESTORATION Funding for activities related to the management and restoration of river health comes from three principal sources: • Commonwealth Government; • State Government; and • regions and individuals. Other funds supporting river health programs include funds from local government, industry and philanthropic trusts.

11.3.1 Commonwealth Funding The Commonwealth Government provides funds for river management and restoration through programs such as the National Action Plan for Salinity and Water Quality and the Natural Heritage Trust. Criteria for eligibility for funding are determined by the Commonwealth in consultation with the State Governments.

Victorian River Health Strategy 121 11.3.2 State Funding The State Government provides ongoing funding specifically for river management and restoration through two major programs: 5 • the Tariff Replacement Fund (TRF); and • the Healthy Waterways Program (HWP). In addition, funds are provided for other catchment management programs and for special initiatives, such as the Water for Growth Initiative, which may also have river health benefits. Furthermore, when significant damage occurs in their region as a result of major flooding, CMAs may also access National Disaster Funding for flood restoration activities. The TRF was established by Government in 1999 to replace the funding raised in the past by a regional waterway tariff. SECTION 5 Government considers that the management and restoration of Victoria’s rivers is a statewide responsibility for the benefit of all Victorians and has therefore provided funding to replace revenue previously collected by the CMAs under the Water Act 1989 for these functions. Funding has been provided both to regions where the tariff had been collected and also to the two regions, Wimmera and Mallee, where the introduction of the tariff had been planned but not implemented. It is recognised that the tariff revenue was replaced at one point in time and that the value of the TRF could be eroded by inflation. Management Arrangements

Government will review the Tariff Replacement Fund allocation every three years.

The TRF is allocated to CMAs to replace the previously collected waterway tariff. It is therefore linked to the number of landholders in the catchment and funds activities that are described in Part 10 of the Water Act. Activities eligible to be funded through the TRF and the HWP include: • developing regional RHSs and their component action plans; • undertaking works identified as priority in plans, which may include the restoration of riparian zones, aquatic habitat restoration (e.g. installation of fish ladders and resnagging rivers), water quality protection, bed and bank stabilisation works, and improving environmental flows; • providing community incentives to achieve river restoration objectives in priority areas; • providing a basic floodplain management service including provision of flood advice, planning referrals and general planning; • monitoring river health; • entering into partnership with other regional groups such as local government and water authorities for projects with multiple benefits (e.g. stormwater management); • increasing community awareness of river health; • encouraging community participation in river health decisions and programs; • corporate management; and • major government-funded drainage and floodplain management schemes (where relevant).

122 Victorian River Health Strategy The regional TRF allocation forms the base funding for river management and restoration for a region. These are different for each region because they reflect, to a large extent, the number of landholders in the region and therefore, to some extent, the significance of river health problems within the region. Regional TRF allocations may then be supplemented by additional allocations from the HWP. The HWP is allocated to CMAs and the Port Phillip and Westernport CALP Board using different criteria that reflect statewide priorities for river management and restoration. Regional HWP allocations may be varied by the Government from year to year after assessment against the HWP criteria. These are outlined in Box 11.2. The criteria for the allocation of TRF and HWP are complementary so that the total State allocation to a region represents the best outcome after consideration of regional needs and problems and State objectives for river management and restoration. The HWP and the TRF are allocated to CMAs and the Port Phillip and Westernport CALP Board through the Regional Management Planning process. This process involves the annual development of a three-year rolling work plan for the implementation of the RCS. It becomes the formal agreement for the use of government funding for land and water management in the region. It is developed with the input of CMA Implementation Committees and input from all regional resource managers.

Box 11.2 Criteria for the Allocation of Healthy Waterways Program Funds

1. Status of Catchment •Value of environmental and public assets within catchment. • Environmental condition of assets and level of risk. • Benefits of proposed work program. • Need to protect areas of high statewide and natural value. • Relative catchment size and length of waterways to be managed. 2. Progress of Action Plans • Status/progress of regional RHS and river health-related action plans. • Priority of proposed work program activities as indicated in endorsed action plans. 3. Performance of CMA in relation to: • Agreed performance measures. • Management of waterway funds. • Implementation of government policy; for example: - integration of waterway and related functions, - innovative, efficient and effective regional partnerships, and - innovative and effective community engagement. 4. Government-directed Activities • The requirement of a CMA to undertake additional activities directed by Government. 5. Funding Available from Other Sources • Level of Tariff Replacement Funding. • Level of other available funding, e.g. Commonwealth programs or other State Government Initiatives. (This will be taken into account when opportunities for funding from various sources may not be available to all CMAs, e.g. National Action Plan program, MDBC programs.)

Victorian River Health Strategy 123 11.3.3 Regional Resources Whilst the major source of regional resources for river management and restoration, the waterway tariff, has been 5 replaced by Government with the TRF, there are some natural resource management activities where there are regional contributions towards implementation and which may provide river health benefits. These include: • government endorsed and community agreed action plans which include landholder contributions because of the private benefits generated by various implementation activities, such as community drainage systems or groundwater pumping schemes within salinity management plans or irrigation reuse systems within catchment water quality management plans; and • floodplain management or regional drainage schemes which provide clear benefits to all landholders within a SECTION 5 specific region. These regional contributions have been based on a set of cost-sharing principles that are applied more generally across natural resource management (outlined in Box 11.3). Regional and landholder contributions for activities which are part of the implementation of regional RHSs or their component action plans (i.e. water quality management plans, streamflow management plans, regional floodplain

Management Arrangements management plans, regional drainage plans) will be negotiated during the planning process using these cost-sharing principles as a basis.

Box 11.3 Cost-Sharing Principles for Natural Resource Management Programs

These cost-sharing principles will be applied in the development of regional RHSs and component river-related action plans. Duty of Care All natural resource users and managers have a duty of care to ensure that they do not damage the natural resource base. They are responsible for making good any damage incurred as a result of their actions. Beneficiary Pays When it is not possible to attribute damage, then primary beneficiaries should pay. Users, both existing and future, are expected to pay for activities which provide private benefits. Contributions from secondary beneficiaries will, where appropriate, be negotiated with the primary beneficiaries. Government Contributions for Public Benefit Government contributes primarily for activities which produce public benefits. Government may agree to contribute to land and water management activities that provide private benefits, where the cumulative uptake of these activities provides significant public benefit and government support is required to facilitate this up-take. Positive Benefit-Cost Before Government will contribute to any land or water management activity, the activity must be technically sound, the benefits must justify the costs and it must be considered a priority activity. Statewide Policy and Monitoring Government will contribute to the cost of statewide planning, statewide resource monitoring and assessment, and research and investigations where they are crucial to sustainable land and water management.

124 Victorian River Health Strategy 11.3.4 Cost-sharing for River Protection and Restoration Whilst the framework for river protection and restoration outlined in the VRHS will ensure that resources are directed to the areas of highest priority and to the most effective means of river restoration, it is clear that the task to be undertaken to achieve the vision is a major one requiring significant resources and long-term commitment. It is important to ensure that the long term funding mechanisms reflect the general cost-sharing principles for natural resource management (Box 11.3) and truly represent, in a fair and equitable way, the impacting groups and the various beneficiaries relating to river health. Beneficiaries that need to be considered include: • water authorities, given their dependence on a healthy resource base and their potential impacts on healthy rivers; • direct beneficiaries (e.g. recreational groups); • local government representing regional economic benefits (e.g. increased tourism); • the broader Victorian community; and • others.

NRE will develop a Discussion Paper on ‘Cost-Sharing Options for the Protection and Restoration of River Health’ for public comment by December 2003.

11.4 ACCOUNTABILITY CMAs will continue to be accountable to Government for funds they spend on river health related activities. They will report, in accordance with government requirements, on activities undertaken and on progress in implementation of their regional RHS and component action plans as part of their annual report. In addition, NRE will from time to time conduct audits of regional integrated waterway and floodplain management programs, and EPA will develop an auditing system to enable audits of the protection of beneficial uses.

Victorian River Health Strategy 125 12. Community Engagement and Participation In the development and implementation of any strategy, the roles of all stakeholders need to be clearly articulated if 5 communication and implementation of action are to be successful. This is particularly important when one of the stakeholder groups is ‘the community’, where the community is defined as any person entered in or affected by aspects of river health management. We have learnt from past experience that without careful definition and planning of roles and tasks, community participation can be seen as tokenistic, can be poorly attended and can fail to fulfil expectations. To achieve the outcomes described in the VRHS, building capacity in three key stakeholder groups will be required.

SECTION 5 These groups are: • the community (including environmental stakeholder groups and local government); • waterway management professionals; and • research and development organisations. The role and future direction of research and development organisations is explored in detail in Chapter 13. The roles and needs of the community and waterway managers are detailed in this chapter. Management Arrangements Within the VRHS, three key outcomes are sought: 1. that the community has an understanding and knowledge about the issues that affect river health. Communities have an important role to play in contributing to the knowledge and information base, the human resource base and the direction of research and development that is required to effectively manage rivers now and into the future. Underpinning this is the need for broader, more general information about waterway management issues to raise community awareness. 2. that the community participates in priority setting and decision making at a catchment level. Inherent in this, is participation in setting objectives, priorities and targets for river health and making judgements on the relative valu’s (economic, environmental and social) of a river system. 3. that capability within the waterway management industry to deliver the strategic outcomes described in the VRHS is further developed. In addition to the appropriate institutional arrangements required to implement the actions described in the VRHS, it is necessary to build on the skills and expertise of waterway managers responsible for implementing many of the actions at the ground level.

126 Victorian River Health Strategy 12.1 COMMUNITY ENGAGEMENT AND PARTICIPATION The role of the community and other stakeholders in setting priorities for river health at a regional level is critical to the success of the VRHS. This is because the decisions that will be made about management of river systems ultimately affect community livelihoods and quality of life. Underpinning the policies described in the VRHS is the recognition that community decision-making about river protection and restoration will balance economic, social and environmental imperatives, provided these decisions are based on a good understanding of how rivers work and what is important ecologically. The need for community and stakeholder participation in the decision-making process has been described in section 2.4 and how this will occur has been described in Chapter 5. However, given the particular nature of community engagement, a number of overarching principles must be adhered to. Community engagement must: • be needs driven – the objectives of community participation need to be clearly articulated. Equally, the roles of the community, other stakeholders and agencies need to be clearly articulated and communicated, so that expectations are understood and have broad support. • be focused at the appropriate level – priority-setting processes should be as close to the ground as possible in order to maximise community input. • be accessible to all members of a community – the VRHS provides the agency commitment and policy context for a truly participatory process. In implementing the VRHS, community and stakeholder groups will have the opportunity to be involved in all the major phases of planning and implementation of programs affecting river health. Specifically, these principles will be implemented through the development of regional river health planning processes that assist the community in setting priorities and agreed targets for the environmental condition of rivers in their catchment. Communities and the individuals that make up communities have a number of roles in the implementation of the VRHS. Primarily, individuals will be relied on to manage their own enterprises in ways that acknowledge their ‘duty of care’ and their role as stewards of natural resources. Secondly, they may participate in community groups and networks, such as Waterwatch and Landcare, aimed at monitoring river health and/or undertaking restoration projects. Thirdly, community members may participate in regional river health planning, priority setting and the implementation of works programs related to river management and restoration. In order to fulfil these roles, it is important that community members are able to build on and enhance local and existing knowledge, skills and resources. Underpinning this is community confidence, willingness and ability to participate in planning and implementation processes.

Victorian River Health Strategy 127 To maximise community knowledge and understanding and ultimately to encourage increased input into decision- making processes and participation in on-ground activities, a number of key elements must be considered: 5 • Data and information – the community have a valuable role to play in the collection of data and information, but also must have access to data and information collected by agencies or other stakeholder groups in order to make fully informed decisions. The role of community monitoring, the issue of access to data and a number of recommendations relating to these issues are explored in section 13.1. Of particular importance is the role of community monitoring, undertaken in programs such as Waterwatch. Community monitoring not only raises awareness and understanding of natural resource management but also allows community members to learn new skills and to contribute data and information to existing agency monitoring programs. Fundamental to the SECTION 5 success of community monitoring programs is the exchange of information from agencies to community groups about monitoring needs, and advice and support on methods and protocols and on the strategic direction of waterway management in the region. With this assistance, community groups will make increasingly valuable and demonstrable contributions to waterway management.

Community monitoring programs, such as the Victorian Waterwatch Program, will continue to develop tools Management Arrangements and training aimed at increasing the value and useability of the data collected by communities.

CMAs will develop partnerships with regional community monitoring networks and others to provide monitoring additional to that undertaken by agency monitoring programs to support regional management requirements.

Data collected through community monitoring programs will also be made accessible through the Victorian Water Resources Data Warehouse.

Community members will have ongoing access to data and information about their catchments through access to: • Regional Data Net; • State Flora and Fauna databases; • Victorian Water Resources Data Warehouse; and • Index of Stream Condition.

• Institutional arrangements to support community engagement and capacity – without clearly defined processes for community engagement and participation, community concerns and effort may be piecemeal, misdirected or, at the extreme, ignored. As described in Chapter 11, the community role in priority setting and planning processes, through working with the CMAs and associated organisations such as Waterwatch, Landcare and local government, is clearly defined.

128 Victorian River Health Strategy • Skills and training – access to information and data to inform decision-making, and clearly defined stakeholder engagement processes facilitate community involvement to a certain point. Community engagement can be greatly enhanced when participants have the skills and capacity to take on a more ‘hands-on’ role. This allows for greater involvement in action planning and implementation and can also give plans longevity, by creating a greater sense of community ownership and stewardship. New skills can be learnt with the assistance of programs like Waterwatch and Landcare. In particular, these programs may provide additional opportunities for environmental stakeholder groups, as a complement to or extension of their existing interests and activities.

Community training programs will continue to be developed through programs, such as Waterwatch and Landcare, to provide the community with the skills to participate in monitoring and on ground rehabilitation activities.

In addition, skills in local government will be further enhanced through the development of tools to facilitate greater integration of regional catchment and river management requirements into local government planning systems, as described in section 11.2.2. • Resources – access to resources, whether it be a water quality database, advice from an extension officer or access to financial assistance for particular natural resource management activities such as weed eradication, can facilitate, or in its absence hinder, stakeholder capacity to participate in natural resource management planning and implementation processes. Therefore, it is important that community members have a clear understanding of the role of stakeholders in catchment management and the services, information or skills that a given group may contribute. Furthermore, opportunities for community engagement in planning and implementation processes, from the development of the regional RHS or a monitoring plan for a Waterwatch group, to participation in streamflow management planning, need to be supported by the provision of appropriate tools developed to meet community needs. In designing planning and implementation processes, agencies need to consider the tools required by the community to maximise community understanding, engagement and participation.

12.2 CAPACITY BUILDING WITHIN THE WATERWAY MANAGEMENT INDUSTRY Rivers are complex and dynamic systems, and adequate planning based on a full understanding of the natural processes involved is essential for maximisation of investment into management activity. The understanding and application of best management practice principles for the stabilisation, protection and restoration of rivers and riparian land is fundamental to the maintenance of good water quality, minimisation of damage to public and private assets, improved environmental values, protection of native fauna, flora and aquatic biodiversity, and public amenity, recreation and tourism values.

Victorian River Health Strategy 129 The waterway management industry has evolved considerably over the last decade. Focus has shifted from engineering solutions for river channels to a whole-of-catchment approach and integrated river and land management 5 solutions. As the industry grows there is a clear need for education and training of its managers for the delivery of waterway management programs to the best management practice principles, thereby also maximising returns from investment in these programs. A commitment to refresh and enhance the skills and knowledge in waterway management of Victorian waterway management professionals, including improved understanding of stream systems, riverine related issues and techniques for stabilisation of waterways and riparian zones, is required, particularly in order to deliver the outcomes of the VRHS.

SECTION 5 In addition to the need for appropriate institutional arrangements and access to information and resources, waterway management professionals require a range of competencies in order to maximise the implementation of VRHS actions. These competencies include: • understanding of the principles of waterway management; • planning, prioritising and management skills; • well developed relationships with stakeholders and good communication and negotiation skills;

Management Arrangements • understanding of the linkages between waterway management, river ecology, and land and biodiversity issues; • understanding of techniques, design and construction in waterway management; • understanding of legislation relevant to waterway management; • understanding of the application of quality assurance systems; and • understanding of vegetation management in riparian zones. The skills and knowledge required are not necessarily easily taught in a traditional classroom situation. Rather, field demonstrations, practical experience and knowledge sharing between those who have extensive experience and those who have less experience in the waterway management industry are critical. It is also acknowledged that traditional skills training programs run in a rigid format can exclude newcomers to the industry. For these reasons, a flexible training program, run on a continuous cycle over a number of years, is required.

A three-year rolling training program for waterway management professionals to improve their skills and abilities in relation to riverine management will be facilitated by NRE in consultation with waterway management professionals.

Commitment to ongoing training for waterway management professionals is critical in ensuring continuous improvement in the industry. However, in addition to this, strategies for bringing in new people, particularly at a graduate level, also need to be considered. By providing opportunities for graduates and new people to enter the profession, knowledge sharing and monitoring can be maximised and succession planning for waterway managers can be improved.

NRE will facilitate the development of a graduate recruitment program to provide training opportunities across the breadth of the waterway management profession including experience in the field and in policy and strategic planning.

130 Victorian River Health Strategy 13. Adaptive Management The framework for the management of river health in Victoria needs to be an adaptive one; that is, one that has built into it the capacity to learn from management decisions and to change our management strategies on the basis of improved knowledge. This is necessary because: • our knowledge of river health processes and how effectively they respond to the various management activities recommended in regional RHSs is incomplete and is unlikely ever to be fully adequate; and • our river systems and climate are highly variable and often system responses cannot be easily predicted at the planning stage. The major elements of an effective adaptive management framework for river health involve a combination of planning, management, research and monitoring and include: 1. high quality, baseline information on river health to be used as the basis for regional planning; 2. some understanding of river health processes and their response to management activities; 3. performance monitoring – to assess whether targets and objectives established in regional RHSs have been achieved; 4. the capacity to assess the effectiveness of key management activities implemented in regional river health management programs; 5. review processes to incorporate new information into regional RHSs and works programs; and 6. community commitment and involvement in a long-term management process. The first two elements are essential inputs to the development of effective regional RHSs. The regional RHSs and their component action plans are developed using the best available information on resource condition in the catchment and, in general, some form of catchment modelling which effectively summarises existing knowledge of predicted resource responses to various management actions. The third and fourth elements are key areas where the effectiveness of current management programs can be evaluated. However, it should be noted that the third element, performance monitoring, simply gives an indication of whether the management program, in total, has achieved its targets. It does not provide an assessment of the effectiveness of individual management actions. This is provided by the fourth element and can only be obtained by well-designed and targeted research programs. It is obviously not possible to undertake this across the State for all management actions. The need for this type of research will be indicated when: • it is clear in the development of the regional RHSs that there is a low level of confidence in the existing information on resource responses to individual management actions; or • performance monitoring has shown that targets predicted to be met for an agreed work program have not been met. Where this is the case, undertaking strategic research case studies is the most effective way of increasing the knowledge base. The fifth and sixth elements provide the means for ensuring that future management does incorporate improved knowledge. This adaptive management cycle for the management of river health in Victoria is described in Figure 13.1.

Victorian River Health Strategy 131 Figure 13.1 An adaptive management framework for river health

5 INFORMATION INPUTS • baseline information on resource condition • understanding of river health responses to management activities

SECTION 5 REGIONAL RIVER HEALTH STRATEGY -objectives -priorities -agreed management activities

RESEARCH

Management Arrangements to understand implementation effectiveness of management of management activities in achieving predicted activities river health responses

if high confidence in if low confidence in does not

river health outcomes river health outcomes achieve objectives achieves objectives

monitor monitor

132 Victorian River Health Strategy Given this, the key requirements for an adaptive management framework are: • a monitoring program designed to measure progress in achieving State and, more particularly, regional objectives and targets; • a consistent statewide long term monitoring network providing baseline information on aspects of the resource base relevant to river health; • a research program, which is aimed at improving our understanding of river health processes and management responses and specifically tests key underlying assumptions made in the development of regional plans; • regular plan review processes which utilise the improved information base; and • mechanisms to engage the community in the management of river health. The last of these has been discussed in Chapters 11 and 12. The following sections discuss the requirements for monitoring and research, and the mechanisms for plan review.

13.1 MONITORING RIVER HEALTH The provision of baseline information for regional river health planning and the capacity to measure progress against statewide and regional targets require monitoring programs that provide data on the various aspects of river health, in particular on: • integrated river health; • streamflows and water quality; • freshwater biota; and • condition of instream and riparian habitat. Issues such as monitoring floodplain condition, the status of floodplain linkages, and wetland and estuarine condition will be important in assessing river health. However, at the moment there are no accepted monitoring methodologies for these areas. Therefore these will be considered under research needs.

13.1.1 Assessment of Integrated River Health The VRHS sets up a framework for the integrated management of river health across Victoria. In doing this, it establishes the regional RHSs as the vehicle for the development of clear management objectives for major river reaches and for setting targets. These management objectives are aimed at providing levels of asset protection but will also be articulated as a statement of the condition of the river reach using the Index of Stream Condition. The ISC was developed as an integrated measure of environmental condition of rivers that could be used to: • benchmark river condition; • set management objectives and targets; and • assess the overall long-term effectiveness of an integrated river management program. The ISC combines information on a range of parameters that are important from an ecological perspective, including hydrology, water quality, physical form, riparian zone and aquatic life (see Appendix 1). The ISC was used to benchmark river condition across the State in 1999. This was the first integrated report on river health that had occurred within Australia. The ISC was designed to be repeated every five years – the next is due in 2004. This type of information is fundamental to the success of the framework established within the VRHS.

Victorian River Health Strategy 133 The CMAs in partnership with NRE will report on stream condition in their regions every five years using the 5 Index of Stream Condition. In addition to the current network of ISC sites, additional sites may be added by CMAs where appropriate to fit their regional planning needs. The ISC was developed using the best available science at the time to fit its objectives. As understanding of river processes and management responses is increased, the ISC will need to be updated to provide the most useful measure of stream condition to regional communities for planning, setting of objectives and river health assessment. One of the SECTION 5 most obvious areas for updating is the hydrology component to take into account current advances in the area of environmental flows. These updates will need to consider that the long-term integrity of the datasets is maintained.

NRE will review the ISC prior to each five year assessment to ensure that the information collected is the most relevant for regional planning whilst ensuring long-term integrity of the data. Management Arrangements Whilst the ISC provides highly valuable information to the regional river health planning process, it will not be the only source of information. CMAs and Melbourne Water may need to conduct further investigations to ensure that they have adequate information on which to base their regional RHSs.

13.1.2 Monitoring of Streamflows and Water Quality Monitoring of streamflows and water quality provides key information inputs to water allocation and water quality planning decisions. In addition, data summarising the hydrology and characteristic water quality of a river reach are required as part of the ISC. Currently, monitoring of both streamflows and water quality is provided through the Victorian Water Quality and Quantity Monitoring Networks. These networks have been established since 1975 (water quality) and the 1950s (water quantity). The networks provide information for a range of target audiences and for a range of purposes including the management of river health. Other purposes include: • assessing trends in resource quality and quantity; • characterising resource condition; • providing data for flood warning; • providing early warning of changes to the resource base; • assessing progress towards targets and objectives; • providing data to determine relationships between catchment condition and use, and water quality and quantity; and • providing data for water infrastructure and regional development projects.

134 Victorian River Health Strategy Because of the variability of Victorian environments, it is essential to have long-term datasets across the State providing information for this range of purposes. In the past, investment in these long-term monitoring networks has been severely reduced. The number of sites monitored for water quality was reduced from 301 in 1975 to 148 in 2000. The number of sites monitored for water quantity was reduced from 530 in 1981 to 275 in 2000. The current networks are in the process of being incorporated into regional water resources monitoring partnerships across Victoria. The process is aimed at providing the most cost-effective means of meeting all water resource monitoring requirements within a region. The process involves all parties conducting water resource monitoring in each region agreeing on a monitoring configuration that meets their collective needs and agreeing on cost sharing. Statewide requirements are fed into these regional agreements and funded by the State Government.

The current investment in water quality and quantity monitoring for statewide requirements will be maintained at a minimum and will be increased where there is a clear requirement identified within the regional monitoring partnerships.

13.1.3 Biological Monitoring A key issue in monitoring river health is an understanding of the condition of the biota living in the river, particularly macro-invertebrate and fish communities which are used as indicators of the health of the rest of the biota. Over the past six years, there has been a major effort undertaken to monitor and characterise the macro-invertebrate communities in Victorian rivers through the AUSRIVAS program undertaken by the EPA. This has been undertaken as part of the National River Health Program funded mostly by the Commonwealth Government. Whilst this program has now ended, the data collected have been essential inputs to regional planning and are a crucial component of the ISC.

Monitoring of macro-invertebrate communities will be undertaken in priority areas to assist in future reporting on river health and in EPA’s reporting on beneficial uses.

Monitoring of fish communities has not occurred in any regular program. Information on fish communities has been collected through a range of specific studies. This is due in part to the fact that there is currently no agreed, consistent, cost-effective methodology for monitoring.

NRE will develop a consistent, cost-effective methodology for monitoring fish communities as a key input to assessments of river health.

Once this methodology has been developed, the potential to incorporate it into regular assessments or reports on river health will be reviewed.

13.1.4 Instream and Riparian Condition Information on the condition of riparian and instream habitats will be collected on a five year basis through the ISC.

Victorian River Health Strategy 135 13.1.5 Data Accessibility All data collected through the monitoring networks described above will be made available through the Victorian Water 5 Resources Data Warehouse. This is an initiative that allows public access to current and historic water resource information. The data is accessible through the World Wide Web at www.vicwaterdata.net. The Victorian Water Resources Data Warehouse currently contains: • water quality and quantity information covering the whole of Victoria; and • the results of the 1999 benchmarking of river condition. It is intended to incorporate further data on groundwater and freshwater fish following development of a standard SECTION 5 survey method (see section 13.2).

13.1.6 Role of Community Monitoring Community monitoring programs such as the Victorian Waterwatch Program are a key element in the Victorian approach to monitoring river health. These programs have been established with dual objectives: • to increase community awareness of water quality and river health issues; and Management Arrangements •to provide credible data to assist in the management of water quality and river health. The value of these programs in performing the first objective has been discussed in Chapter 12. However, these networks also provide the opportunity to collect data additional to that collected by the official monitoring networks described above. This can provide increased spatial coverage, increased sampling frequency and/or an increased number of parameters sampled. These programs have significant quality assurance and quality controls in place to ensure the credibility of data.

Community monitoring programs such as the Victorian Waterwatch Program will continue to develop tools and training aimed at increasing the value and useability of the data collected by communities.

CMAs will develop partnerships with regional community monitoring networks to provide additional monitoring to support regional management requirements.

Data collected through community monitoring programs will also be made accessible through the Victorian Water Resources Data Warehouse.

13.1.7 Oversight of Monitoring of River Health It is important that there is some oversight of the monitoring of river health across the State to ensure that: • it provides information to meet regional needs for planning and performance measurement; • it is well coordinated, efficient and effective; • monitoring programs and networks continue to be based on the best available scientific information; and • data continues to be made accessible to the public in relevant, useable ways.

136 Victorian River Health Strategy A State Water Quality Monitoring and Assessment Committee has been established under the auspices of the Victorian Catchment Management Council to: • further develop, implement and coordinate a statewide monitoring and assessment program to report on the condition or health of the State’s rivers and streams, wetlands and estuaries; •investigate more innovative ways of monitoring to more efficiently and effectively provide information to regional management frameworks; and •provide an annual report card to the Minister.

13.2 RESEARCH The framework for the management of river health in Victoria will be based on the best available scientific information and will be adaptive. This means it must incorporate a research component, which is aimed at improving: • current knowledge of river health processes; • understanding of river health responses to various management actions so that: - there is a better understanding of the effectiveness of management actions in achieving river health outcomes, and - there is improved capacity to predict these responses for input into regional planning processes; • current methods for assessing river health; • tools for the management and restoration of river health; and • factors which influence community understanding and engagement in the management of river health. The research component of the Victorian river management program will be undertaken with the best expertise available and will contribute, wherever possible, towards improving knowledge on river management and restoration at the national level.

There will be an ongoing research component of the Victorian river management and restoration program. This will: • be undertaken through partnership between government research institutions, universities and Cooperative Research Centres. • provide essential knowledge to the Victorian program and will contribute wherever possible to the national agenda.

There are many areas where our knowledge base on rivers is insufficient. However, during the development of the VRHS and through consultation with stakeholders, some key gaps in our knowledge base have been identified. One major gap is the need to improve the understanding of the importance and likely impact of environmental flows. This knowledge can only be gained by significant work through a combination of basic research aimed at identifying the significance of aspects of the flow regime for river functioning and biota and through a series of case studies examining the impacts of changes in environmental flow regimes on river health. Another major gap is the importance of groundwater in affecting both the quality and quantity of water in river systems. Immediate priorities for research are identified in Table 13.1.

Victorian River Health Strategy 137 Table 13.1 Immediate priorities for research identified in the development of the Victorian River Health Strategy

5 Research Area Immediate Priority for Research

Improving understanding • Identifying the significance of components of the flow regime, including groundwater, of river health processes for river functioning and biota

Improving understanding • Undertaking experimental case studies examining the impacts of changes in of river health responses environmental flow regimes on river health SECTION 5 to management actions • Identifying ecosystem thresholds to better inform restoration programs and targets • Identifying the relationship between nutrients and algal blooms

Assessment methods Development of indicators to identify ecologically healthy rivers. This will involve: • development of improved indicators of hydrologic stress • development of an agreed methodology for assessing the health of fish communities Management Arrangements • development of a methodology to assess the health of floodplains and estuaries and their links to river health • development of definitions of ‘ecologically healthy’ for urban and highly regulated streams • development of an approach to improve the link between riparian and catchment vegetation assessments

Management tools Development of approaches to improve protection and restoration of rivers, specifically: • development of improved means for the protection of river health including investigation of the role of aquatic reserves • development of risk assessment approaches for management of threats to aquatic systems • development of guidelines to assess ‘overall improvement’ in river systems, for application to water trading and riverine works • development of production systems that reduce water use and run-off of nutrients and chemicals

Improving understanding • identify factors which influence community understanding and engagement of community attitudes to river restoration

138 Victorian River Health Strategy NRE will: •facilitate the immediate commencement of research projects in these areas; and • continue to liaise with CMAs and other relevant groups to identify priorities for future research.

13.3 REVIEW The final requirement of an adaptive framework for the management of river health in Victoria is ensuring that there is a process that allows management strategies to be reviewed to incorporate: • new information; • results of performance monitoring; and • any changes in community attitudes and value.

The VRHS and the regional RHSs and their component action plans will be reviewed every five years.

Victorian River Health Strategy 139 > APPENDICES Appendices

140 Victorian River Health Strategy Appendix 1 The Index of Stream Condition The ISC is an integrated measure of the environmental condition of our rivers that combines information on hydrology, water quality, physical form, riparian zone and aquatic life that is important from an ecological perspective. A total of 19 parameters are measured. The ISC provides an overall indication of changes in river condition.

Hydrology Streamside zone Physical form Water quality Aquatic Life

• AAFPD •Width • Bank stability •Total Phosphorus • SIGNAL • Catchment • Longitudinal • Bed stability •Turbidity •AUSRIVAS permeability continuity •Artificial barriers •Electrical • Presence of • Structural • Instream conductivity hydroelectric intactness physical habitat •pH power stations • Cover of exotic vegetation • Regeneration of native species • Billabong condition

AAPFD: Amended Annual Proportional Flow Deviation (based on a comparison of actual and natural monthly flows).

SIGNAL: Stream Invertebrate Grade Number - Average Level method. Uses scores awarded to macro-invertebrate families based on their sensitivity to stream salination and organic pollution.

AUSRIVAS: predicts the macro-invertebrates that should be present in specific stream habitats under reference conditions. It does this by comparing a test site with a group of reference sites which are as free as possible of environmental impacts, but have similar physical and chemical characteristics to those found at the test site.

Victorian River Health Strategy 141 There were 950 reaches, representing approximately 18 000 km of Victoria’s major streams and their tributaries, assessed during the 1999 benchmark. > Results from the 1999 benchmark are presented on the World Wide Web at www.vicwaterdata.net/isc. Data can be viewed at the CMA, river basin, river or reach scale. A statewide report is currently in preparation. The information is being used in regional river health planning: • in identifying environmental assets, asset condition and asset threats for each of the major river reaches; • in setting management objectives; • in setting priorities for work; and • in reporting on river condition. Appendices

Using the ISC to Identify Ecologically Healthy Rivers As indicated above, the 1999 benchmarking collected information on the hydrology, the water quality, the condition of the riparian zone and the channel, and the aquatic biota, which is being directly utilised in regional river health planning. The ISC was designed primarily for this purpose and currently does not contain all the information required to identify ecologically healthy rivers as outlined in Chapter 2. However, the Scientific Group advising on the development of the VRHS has made a first attempt to define criteria to use existing data from the statewide benchmarking to identify rivers that are likely to be ecologically healthy. This has been done to provide communities with some practical assistance and guidance in making decisions. It should be noted that this is a ‘first cut’ and is quite conservative. There is a high degree of certainty that rivers meeting these criteria do meet the definition of ecologically healthy. Rivers with lesser scores may be ecologically healthy but, at this stage, we don’t really know. These criteria will be refined as further information becomes available (see Chapter 13).

Criteria for identifying ecologically healthy rivers using information from the statewide benchmarking Note: all criteria must be met

Criteria Meaning

Riparian vegetation: • structural intactness • very close to natural structure (i.e. within one ISC class) • longitudinal continuity •> 80% of bank vegetated with no more than 5 significant gaps for each tree, shrub and groundwater layer (> 10 m per km) • cover of exotic vegetation •< 40% exotic cover for each of the tree, shrub and ground cover layers

Instream species Macro-invertebrate communities which are very similar to those found at reference sites (i.e. combined SIGNAL and AUSRIVAS rating of at least 9)

Major habitat features • in lowland reaches, numerous to abundant woody debris within stream sourced from native vegetation • in upland reaches, > 30% stable habitat within stream

Longitudinal continuity Barriers downstream which may only occasionally impede fish passage

Bed condition Stable or limited instability

142 Victorian River Health Strategy Appendix 2 Victoria’s Heritage Rivers, Natural Catchment Areas and Ramsar Wetlands

HERITAGE RIVERS

Criteria for selection When considering a river or stream for Victorian Heritage River status, the LCC (1991) took into account whether the watercourse, or its immediate environment, contained one or more of the following values: • Natural values - Sites supporting plant and animal communities that have particular significance because of their rarity, very restricted distribution or unusually high diversity; these include zoological or botanical ‘sites of significance’ identified in published reports. - Sites with individual species of plants or animals that are rare or endangered, or otherwise have particular conservation significance; these also include zoological or botanical ‘sites of significance’. - Streams - identified as ‘essentially natural’ mainstreams - that are in very good condition because their immediate catchments adjacent to the corridors have undergone little modification by modern technological society. -Features that are outstanding examples of geological history or geomorphological processes, or other natural phenomena; these include ‘sites of geological or geomorphological significance’ identified in published reports. The natural heritage values are closely associated with the riparian or aquatic environments, or are within the river corridor. • Cultural heritage values - Important cultural features that by virtue of their rarity, antiquity, concentration or representativeness, illustrate human interactions with riverine environments. - Areas or features within the corridor that are strongly associated with significant persons, events, movements, achievements, ideas or beliefs. • Scenic landscape values - Combinations of landforms, waterforms and vegetation types, and (in appropriate settings) cultural features that provide outstanding opportunities for the enjoyment of scenic vistas. - Vistas of high scenic quality that reflect particular landscape character types and river settings, and outstanding examples of particular landscapes. • Recreation values - River corridors whose biological and physical characteristics provide outstanding recreational opportunities along their length or at numerous points along their courses. -Significant recreational opportunities found on river corridors that are rare in terms of their resource requirements or setting. - An outstanding diversity of recreational opportunities along a river corridor.

Victorian River Health Strategy 143 Given the diversity of the values and their expression, the LCC did not believe that a numerical weighting system was appropriate or desirable. Rather it used the following points to judge and rank the total values of rivers, and to > determine the upper and lower boundaries (each point is of equal value): •the extent of each corridor/site with high values, in terms of its size and relation to the river; • the significance of each value, where assessed; •the distribution and extent of overlap of values; •the combination of particular values that enhanced the significance rating; •the diversity of values present; • the start and finish points of significant river values; and • the exclusion of modified/degraded sections. Appendices This ranking process allowed rivers to be ordered into groups. Outstanding rivers were identified based on the range, distribution, and significance levels of their values, and accordingly as having heritage river status. A Victorian Heritage River has: • one or more values of national or international significance, where those values are strongly associated with a substantial section of the watercourse (a single localised value was insufficient); or • an aggregation of at least four values, generally of State or greater significance, which together create a corridor of Victorian heritage river status.

Listing of Victorian Heritage Rivers River corridor name: Ovens River Big River Goulburn River Bemm, Goolengook, Arte and Errinundra Rivers Snowy River Suggan Buggan and Berrima Rivers Upper Mitchell and Wonnangatta Rivers Lerderderg River Aire River Glenelg River

NATURAL CATCHMENT AREAS An ‘essentially natural’ catchment is one with no urbanisation, clearing, intensive agriculture, mining, extractive industries, water storages, water diversions, river engineering works, or roads parallel and immediately adjacent to streams. Catchments to third-order streams were used as the basic land unit for the assessment. They commonly range in size from 1000 to 10 000 hectares.

Listing of Natural Catchment Areas 1. East Gippsland Coastal Streams Catchment Area – all those pieces of land in the catchments to the Red and Benedore Rivers, and Shipwreck, Easby and Seal creeks, and the areas between them 2. and Mountain Creek Catchment Area 3. Avon River Catchment Area – all those pieces of land in the catchments to the Avon, Turton and Dolodrook Rivers, and Ben Cruachan and Thiele creeks

144 Victorian River Health Strategy 4. O’Shannassy River Catchment Area 5. Log Bridge Creek Catchment Area – all those pieces of land in the catchment to the East Branch of the Log Bridge Creek 6. Mount Tabor Creek Catchment Area 7. Banimboola Creek Catchment Area 8. Devils Creek Catchment Area – all those pieces of land in the catchment to the Middle Branch of the Devils Creek 9. Yarrarabula Creek Catchment Area 10. Long Jack Creek Catchment Area 11. Williams Creek Catchment Area 12. Double Creek Catchment Area 13. Genoa River Tributary Catchment Area – all those pieces of land in the catchment to the unnamed tributary to the Genoa River. 14. Winnot Creek Catchment Area 15. Errinundra River Catchment Area – all those pieces of land in the catchment to the East Branch of the Errinundra River 16. Gattamurh Creek Catchment Area 17. Wallaby Creek Catchment Area 18. Mount Gelantipy Creek Catchment Area 19. Musk Creek Catchment Area 20. Catchment Area – all those pieces of land in the catchment of the headwaters of the Brodribb River 21. Stony Creek Catchment Area 22. Catchment Area – all those pieces of land in the catchment of the headwaters of the Wongungarra River 23. Blue Rag Creek Catchment Area 24. Pinnacle Creek Catchment Area – all those pieces of land in the catchment to the East Branch of Pinnacle Creek. 25. Punchen Creek Catchment Area 26. Mount Vereker Creek Catchment Area

VICTORIA’S RAMSAR WETLANDS There are 11 Ramsar wetlands currently listed in Victoria. They are listed below. Those that are heavily dependent on river condition are indicated in italics. Barmah Forest Gunbower Forest Hattah-Kulkyne Lakes Gippsland Lakes Kerang Wetlands Western District Lakes Western Port Corner Inlet Port Phillip Bay and Bellarine Peninsula Edithvale-Seaford Wetlands

Victorian River Health Strategy 145 Appendix 3 Lead Responsibilities for Specific Functions Related to the Regional > Management of River Health

Map of Victoria’s CALP regions

Mildura Appendices

Ouyen Mallee Swan Hill

Birchip

Echuca Shepparton Wodonga Nhill North Wangaratta Central Wimmera North East Horsham Bendigo Goulburn Broken Omeo East Gippsland Hamiliton Port Phillip & Ballarat Westernport Bairnsdale Orbost Glenelg Hopkins Melbourne Geelong Warragul Warrnambool Corangamite Portland Colac

146 Victorian River Health Strategy The lead responsibilities for specific functions outlined below applies to all CALP regions within Victoria except the Port Phillip and Westernport CALP region.

Lead Issue Activity Responsibility Comments

Regional Develop and coordinate implementation of RCS and CMA In consultation catchment component action plans with community management

Integrated Develop detailed regional RHSs and coordinated work CMA In consultation waterway programs within RCS context with community management and relevant stakeholders Include waterway and floodplain requirements into Local government statutory planning schemes Implement works for CMA •stabilisation of bed and banks • habitat improvement for river and floodplain Control works and activities on waterways CMA Ensure community input and involvement CMA Undertake community education CMA Administer licences for the extraction of sand and gravel NRE – Land from waterways and floodplains Victoria/Minerals & Energy

Floodplain Develop regional floodplain management strategies CMA management Develop catchment-wide levee management strategies CMA and undertake audits Promote community awareness of flooding CMA Liaise with local government and State Emergency CMA Services on flooding and emergency management issues Be a referral authority for scheme amendments, planning CMA and building approvals Include flood information in planning schemes and Local government emergency plans Provide technical advice to councils and the community CMA on flooding Develop regional floodplain management works programs CMA Implement, operate and maintain specified strategic CMA regional works Implement, operate and maintain urban works Local government Implement and maintain flood warning systems Local government Coordinate recording of flood events and ensure that CMA flood data base is maintained Undertake regional flood studies CMA Undertake urban flood studies Local government

Victorian River Health Strategy 147 Lead Issue Activity Responsibility Comments

> Management of Develop regional plan/strategy for drainage management CMA rural drainage Coordinate implementation of drainage plan/strategy CMA • establish roles of implementing authorities, e.g. RWAs, local government, community drainage groups •oversee implementation Manage irrigation drainage systems RWAs Manage urban stormwater drainage systems Local government

Appendices Manage other regional drainage systems CMA or local Lead agency government in (resolution of specific cases responsibilities to be determined between CMA and Manage community surface drainage systems as per existing local government) arrangements

Management of Develop statutory water quality objectives EPA water quality Develop detailed water quality management plans and CMA In consultation work programs (ensure consistency with SEPP objectives) with the community and relevant stakeholders Develop licence conditions for point sources EPA Coordinate implementation of water quality management plans CMA • develop funding bids • administer relevant government funding Undertake community education (adoption of BMPs in NRE priority areas) Report to Government on implementation CMA

148 Victorian River Health Strategy Lead Issue Activity Responsibility Comments

Water allocation Bulk entitlement conversion NRE In consultation with the relevant stakeholders, including CMAs Grant new bulk entitlements NRE In consultation with the community and relevant stakeholders Develop SDLs NRE/RWA SFMPs In consultation with • set priorities CMA the community and • development Consultative relevant stakeholders Committee with technical & administrative •oversee implementation CMA support provided by RWAs Manage environmental flow allocations NRE Prepare basin water accounts RWA/NRE Develop stressed river proposals CMA In consultation with the community and relevant stakeholders Waterway determinations RWA Chair waterway determination grievance panels

Management of Undertake assessment of Crown water frontages CMA Crown water Set licence conditions NRE Determined by frontages other NRE, in consultation than those with CMA managed by Parks Administer licences NRE Victoria, Forests Administration to be Service or existing Integrate management of licences with general waterway CMA determined between Committees of management CMA and NRE Management

Management of Coordinate implementation of Heritage River Management CMA Heritage Rivers Plans where required other than those Implement priority actions in the plans CMA, Parks managed by Parks Victoria, NRE Victoria, Forests Coordinate community initiatives associated with the CMA Service or existing management of plans Committees of Management Report on progress on plan implementation CMA

Victorian River Health Strategy 149 Lead Issue Activity Responsibility Comments

> Groundwater Manage groundwater abstractions in areas where use is RWA management < 70% PAV Manage groundwater abstraction in areas where use is RWA > 70% PAV Develop management plans for groundwater supply RWA In consultation with protection zones the community and relevant stakeholders Appendices Monitoring Statewide monitoring of •water quality NRE • water quantity NRE • biological communities EPA Further monitoring of CMA Establish extra •water quality monitoring sites to • water quantity meet regional needs in consultation with relevant stakeholders Five-yearly monitoring of stream condition CMA Waterwatch Set priorities as part • regional priorities CMA of regional RHSs Establish coordination • regional coordination CMA/water arrangements where authorities necessary

150 Victorian River Health Strategy Glossary

Bankfull – flows that completely fill the channel. Floodplain–river linkage – the linkage that is established Barriers – artificial instream structures, such as dams, when floods inundate the floodplain, allowing an exchange weirs, causeways and culverts, that restrict the migration of sediments, nutrients, organic material and biota between and movement of fish or other biota and can interrupt the river and floodplain. transport of organic material and sediment. Freshes – flow greater than median flow for that period. Baseflow – the component of streamflow supplied by Occurs generally in the summer and spring months. groundwater discharge. High flow –a term used to describe the persistent increase Bulk Entitlement – the property right to water held by in seasonal baseflow that occurs over autumn, winter and water and other authorities defined in the Water Act. The BE spring, but which remains confined in the channel. defines the amount of water that an authority is entitled to Low flow – flows that provide a continuous flow over the from a river or storage, and may include the rate at which it bottom of the channel, but do not fill the channel to any may be taken and the reliability of the entitlement. great depth. The term is most often used in relation to Cap – an upper limit for the diversion of water from a baseflows that occur over the drier periods of the year and waterway, catchment or basin. that are sustained for some period (weeks to months), due Catchment – the region which drains all the rainfall, other to short bursts of rain. than that removed by evaporation, into a stream, which Overbank flows – flows that spill over the channel onto then carries the water to the sea or a lake. the floodplain. Ecologically sustainable development (ESD) – Protection – ensuring that there is no further decline in development that improves the total quality of life, both now environmental condition of the river. and in the future, in a way that maintains the ecological Regulated systems – those where the flow of the river is processes on which life depends. regulated through the operation of large dams or weirs. Environmental asset – the biota, habitats and ecological Restoration – improvement or enhancement of the processes of an area. environmental condition of the river in the direction of Environmental flow assessment – assessment of the ‘ecologically healthy’. water regimes needed to sustain the ecological values of Salinity – the concentration of dissolved salts in water, water-dependent ecosystems at a low level of risk. mainly chlorides, bicarbonates and sulphates of sodium, Environmental flow (agreed) – are those water regimes calcium, magnesium and potassium. Salinity is a natural that are provided as a result of the water allocation feature of waterways and varies across the landscape. decision-making process taking into account ecological, Increasing salinity from changed land and water issue is a social and economic impacts/implications. They meet in serious issue for both aquatic and terrestrial ecosystems. part or full the ecological water requirements. Terminal lake – receives inflows from streams or rivers Estuary – the zone where a river meets the sea, influenced draining its catchment, but has no streams draining from it. by river flows and tides and characterised by a gradient It is the endpoint of a river system. from fresh to salt water. Unregulated system – a system where no major dams or Exotics – species that are non-indigenous. weir structures have been built to assist in the supply or Fish passage – provision for the movement or migration of extraction of water. fish past barriers. Wetlands – inland, standing, shallow bodies of water, Fishway – a structure that facilitates fish passage past a which may be permanent or temporary, fresh or saline. barrier. Floodplain – the relatively smooth valley floors adjacent to and formed by alluviating rivers which are subject to overflow during flood events. Victorian River Health Strategy 151 References

> Commonwealth Government Programs or Strategies Agriculture & Resource Management Council of Australia and New Zealand, Australian & New Zealand Environment & Conservation Council and Forestry Ministers 2001, Weeds of National Significance. Willows (Salix taxa, excluding S. babylonica, S. x calodendron and S. x reichardtii) Strategic Plan, National Weeds Strategy Executive Committee, Launceston. Agriculture & Resource Management Council of Australia and New Zealand, Australian & New Zealand Environment & Conservation Council and Forestry Ministers 1997, The National Weeds Strategy: A Strategic Approach to Weed Problems

Appendices of National Significance, Commonwealth of Australia, Canberra. Commonwealth of Australia 2000, National Action Plan for Salinity and Water Quality, Canberra. Commonwealth of Australia 1992, National Strategy for Ecologically Sustainable Development, Canberra. Murray-Darling Basin Ministerial Council 2001, Integrated Catchment Management in the Murray-Darling Basin 2001-2010. Delivering a sustainable future, Murray-Darling Basin Commission, Canberra.

Victorian Government Programs or Strategies EPA 2001, Draft State Environment Protection Policy (Waters of Victoria), Environment Protection Authority, Victoria. EPA 1997, State Environment Protection Policy (Groundwaters of Victoria), Environment Protection Authority, Victoria. Government of Victoria 1995, Victorian Nutrient Management Strategy, Department of Natural Resources and Environment, Victoria. NRE 2002, Victorian Pest Management - A Framework for Action, Department of Natural Resources and Environment, Victoria. NRE 2000, Victoria’s Draft Native Vegetation Management Framework - A Framework for Action, Department of Natural Resources and Environment, Victoria. NRE 2000, Victoria’s Salinity Management Framework. Restoring Our Catchments, Department of Natural Resources and Environment, Melbourne. NRE 1998, Victoria Flood Management Strategy, Department of Natural Resources and Environment, Victoria. NRE 1997, Victoria’s Biodiversity - Sustaining Our Living Wealth Strategy, Department of Natural Resources and Environment, Victoria. NRE and Parks Victoria 2002, Management of Victoria’s Ramsar Wetlands Strategic Directions Statement, Parks Victoria and Department of Natural Resources and Environment, Victoria. Parliament, Victoria, 1988 ‘State Environment Protection Policy (Waters of Victoria)’, Special Government Gazette, no S13, 26 February, Victorian Government Printing Office, Melbourne. Victorian Coastal Council 2002, Victorian Coastal Strategy, Government of Victoria.

Other References Bradford, A., Zhang, L. and Hairsine, P. 2001, Implementation of a Mean Annual Water Balance Model within a GIS Framework and Application to the Murray-Darling Basin, Technical Report, Report no. 01/8, CRC for Catchment Hydrology. Climate Impact Group, CSIRO Atmospheric Research, in prep, Climate Change in Victoria: Assessment of climate change, impact and possible adaptation strategies relevant to Victoria, Report prepared for the Department of Natural Resources and Environment, Victoria.

152 Victorian River Health Strategy Doeg, T. J. 2001, Representative Rivers of Victoria: selection of regions - a discussion paper, Draft report prepared for Department of Natural Resources and Environment, Victoria. LCC 1991, Rivers and Streams Special Investigation. Final Recommendations, Land Conservation Council, Melbourne. National Land and Water Resources Audit 2002, Australian Catchment, River and Estuary Assessment 2002, National Land and Water Resources Audit, Canberra. National Land and Water Resources Audit 2001, Australian Water Resources Assessment 2000 - Surface water and groundwater - availability and quality, Land and Water Australia, Canberra. National Land and Water Resources Audit 2000, Surface and Groundwater Management, Availability, Allocation and Efficiency of Use. State of Victoria Water Resources Overview, Water Availability WebSite - Land and Water Australia, Canberra. NRE (in prep.), Licensing Guidelines for New Irrigation or Commercial Dams, Department of Natural Resources and Environment, Victoria. NRE 2002, Stream Flow Management Plan Framework, Department of Natural Resources and Environment, Victoria. NRE 2002, Port Phillip Bay Environmental Management Plan: Plan And Critical Programs to 2003, Department of Natural Resources and Environment, Victoria. NRE 2002, The State of Water, Department of Natural Resources and Environment, Victoria. NRE 1999, An inventory of fishways and potential barriers to fish movement and migration in Victoria, State Fishway Program, Department of Natural Resources and Environment, Victoria. NRE 1996, Code of Forest Practices for Timber Production 1996, Revision no. 2, Department of Natural Resources and Environment, Victoria. NRE, Sinclair Knight Merz, Cooperative Research Centre for Freshwater Ecology & Lloyd Environmental Consultants 2001, A method of determining environmental requirements in Victoria. Draft report prepared for Department of Natural Resources and Environment, Victoria. Nutrients Technical Group 1998, Macalister Irrigation District Nutrient Reduction Plan, Department of Natural Resources and Environment and Southern Rural Water, Maffra. Parliament, Victoria 1982, ‘State Environment Protection Policy (The Waters of the Western Districts Lakes)’, Special Government Gazette, no. W34B, 12 February, Victorian Government Printing Office, Melbourne. Standing Committee on Rivers and Catchments 1991, Guidelines for Stabilising Waterways, Rural Water Commission, Victoria. Standing Committee on Rivers and Catchments 1990, Environmental Guidelines for River Management Works, Department of Conservation and Environment, Victoria. Thoms, M., Suter, P., Roberts, J., Koehn, J., Jones, G., Hillman, T. and Close, A. 2000, Report of the River Murray Scientific Panel on Environmental Flows. River Murray - Dartmouth to Wellington and the Lower Darling River, Murray- Darling Basin Commission, Canberra. Water Resources Strategy Committee for the Melbourne Area 2001, Discussion Starter: Stage 1 in developing a Water Resources Strategy for the Greater Melbourne area, Government of Victoria.

Victorian River Health Strategy 153 Acronyms > AAPFD Amended Annual Proportional Flow Deviation AUSRIVAS Australian River Assessment System BEs Bulk Entitlements BMP Best Management Practice CALP Catchment and Land Protection CMAs Catchment Management Authorities COAG Council of Australian Governments

Appendices CSIRO Commonwealth Scientific and Industrial Research Organisation CWQAP Catchment Water Quality Action Plan EC Electrical Conductivity EPA Environment Protection Authority ESD Ecologically Sustainable Development EVCs Ecological Vegetation Classes FFG Flora and Fauna Guarantee GMPs Groundwater Management Plans HWP Healthy Waterways Program ICM Integrated Catchment Management ISC Index of Stream Condition LCC Land Conservation Council LG Local Government MDB Murray-Darling Basin MDBC Murray-Darling Basin Commission MWC Melbourne Water Corporation NAP National Action Plan for Salinity and Water Quality NRE Department of Natural Resources and Environment PAVPermissible Annual Volume PFF Parks, Flora and Fauna PV Parks Victoria RCSs Regional Catchment Strategies RHSs River Health Strategies RWAs Rural Water Authorities SDLs Sustainable Diversion Limits SEPP State Environment Protection Policy SFMPs Streamflow Management Plans SIGNAL Stream Invertebrate Grade Number - Average Level TRF Tariff Replacement Fund VRHS Victorian River Health Strategy WAsWater Authorities

154 Victorian River Health Strategy Victorian River Health Strategy 155 HEALTHY RIVERS, HEALTHY COMMUNITIES & REGIONAL GROWTH - VICTORIAN RIVER HEALTH STRATEGY