Provide greater security for meeting the future water needs of Victorians

Contribution to ‘Water for the future’ target — Reduce ’s water use by 15% by 2010

This ‘Water for the future’ target assumes per capita consumption of 423 L/d, and aims for a reduction to per capita demand of 360 L/d by 2010 — a cut of 29,000 ML pa.60 The potable water savings are being generated by the following investments: Investment of $11.3 million 1. 615 ML pa saved through installation of water-efficient appliances and from the Victorian Water Trust re-use systems as at 30 April 2006 (VWT investment of $5.497 million from has contributed to reducing the Water Smart Homes and Gardens Rebate Scheme for the areas Melbourne metropolitan water serviced by City West Water, South East Water, ) demand by approximately 2. 24 ML pa saved through installation of water-efficient appliances in 1,518 ML pa or 5% of the total households owned by low-income Victorians61 (VWT investment of savings needed to meet the $0.933 million from the from the Water Conservation Assistance Pilot Program for the local government areas of City of Yarra, Glen Eira and ‘Water for the future’ target of Knox) 29,000 ML pa. 3. 697 ML pa saved through improved industrial practices ($1 million VWT investment in Water Smart Industry Demonstration Projects through the Werribee Plains Vision) 4. At least 180 ML pa of potable water currently used by Wyndham City Council and Werribee Racing Club for irrigation will be replaced with recycled water (VWT investment from Werribee Plains Vision of $3.339 million in the Werribee Recycled Water Scheme — an extension of the West Werribee Dual Water Supply Project and the Werribee Technology Precinct Project)62 5. 2 ML pa recycled laundry water and rainwater used for watering open space and garden beds at a public housing estate (VWT investment of $0.496 million in the $1.2 million Atherton Gardens Water Conservation and Water Recycling Project).

60Water for the future: Labor’s plan to secure ’s future water needs, 2002, R Lindell, West Melbourne. 61Evaluation of the Water Conservation Assistance Pilot Program, August 2005, URS Pty Ltd for the Department of Sustainability and Environment, East Melbourne. 62Werribee Recycled Water Scheme Funding Proposal, October 2005, City West Water Ltd, Sunshine, p.13.

Accelerating Sustainable Water Management 23 VWT investment as a component of the overall plan The Victorian Water Trust invests in two demand management activities to reduce Melbourne’s water consumption included in the Plan and reported In 2004, the four Melbourne metropolitan water authorities prepared a Joint against by the water authorities: Water Conservation and Recycling Plan for Metropolitan Melbourne 2004–05 rebates and Water Management to 2009–10 with the objective of meeting the targets for water conservation Plans.63 and water recycling established for Melbourne by the Government in ‘Water A. Rebates for the future’. The Plan forecasts that Melbourne’s per capita water use can be reduced by 20% by 2010, which provides a buffer to ensure the 15% target The Joint Water Conservation and is met, and sets out demand management activities to achieve 50,000 ML pa Recycling Plan for Metropolitan of water savings. Figure 7 shows the projected contribution of each demand Melbourne 2004–05 to 2009–10 management activity to the 50,000 ML pa savings. projected that investment of $10.8 million over 7 years in rebates on water-efficient household goods would generate water savings of 1,152 ML pa towards the requisite 60000 50,000 ML pa savings by 2010, with the VWT Water Smart Homes and Gardens Rebate Scheme being the 50000 mainstay of the rebates program. As at 30 April 2006, VWT investment 40000 of $5.497 million from the Water Smart Homes and Gardens Rebate Scheme for the areas serviced by 30000 City West Water, South East Water, and Yarra Valley Water was estimated to have saved 615 ML pa64 20000 through supporting the installation of water-efficient appliances and re- use systems. These water savings 10000 are in line with the projected return on investment. 0 04/05 05/06 06/07 07/08 08/09 09/10

Rebates SSUD – Tank to toilet Victorian Water Trust Water management Plans Mandatory labelling/applications investment in the Water Education – Behavioural change Pressure Management Smart Homes and Gardens Permanent Water-saving Rules Leakage Control Rebate Scheme has generated Pricing approximately 615 ML pa water savings for Melbourne Figure 7. Projected water savings for Melbourne until 2010 from each towards the 1,152 ML pa demand-management activity identified in the Joint Water Conservation and forecast as achievable by Recycling Plan for Metropolitan Melbourne 2004-05 to 2009-10 (from 2010. ‘Securing our Water Future Together’).

64Savings from water-efficient appliances are estimates only, and are based on assumption that are appliances purchased under the rebate scheme will remain in service until at least 2010.

24 Victorian Water Trust B. Water Management Plans The Joint Water Conservation and Recycling Plan for Metropolitan Melbourne 2004–05 to 2009–10 projected that savings of 3,370 ML pa towards the requisite 50,000 ML pa savings by 2010 could be achieved through the water businesses working with the top 200 industrial water users to develop Water Management Plans. VWT investment of $1 million in the Werribee Plains Vision Water Smart Industry Demonstration Projects is saving 697 ML pa through improved industrial practices. This is 20.7% of the projected 3,370 ML pa of savings available by 2010 through Water Management Plans. Future Victorian Water Trust investment of $100,000 in the Werribee Vision project Best Practice Benchmarks in Water Use for Commercial and Industrial Water Consumers will provide an important adjunct to Water Management Plans. Benchmarking of water usage will be a much more reliable method of measuring the impact of water conservation efforts than billed water usage, which is susceptible to fluctuations in production levels arising from market conditions.65

65Benefits of benchmarking water usage from ‘Progress report to 30 June 2005 for Joint Water Conservation Plan for Metropolitan Melbourne 2004–05 to 2009–10’ submitted to the Department of Sustainability and Environment, 1 September 2005 by the , City West Water, South East Water and Yarra Valley Water, p.16.

Accelerating Sustainable Water Management 25 Broader impact of VWT investment on security — Lasting demand reduction Case study: Water Smart Homes and Gardens Rebate Scheme — creating a legacy from water restrictions

Water restrictions are recognised to be a temporary, reactive response to low The value of rebates claimed per water supply levels. Water consumption may increase when restrictions are customer was strongly positively lifted and people are less conscious of the imperative to save water. correlated with the level of water Increasing the long-term impact of water restrictions is a challenge for the restrictions in the largest population water sector.66 centre within each water authority’s territory (Figure 8).70 That is, as the To identity factors related to the uptake of the Water Smart Homes and severity of water shortage increased Gardens Rebate Scheme, the total expenditure on rebates within each water the uptake of the rebates also 67 68 authority’s territory was divided by number of customers to standardise increased. expenditure by population. The level of water restrictions in the largest urban centre within each water authority’s jurisdiction (e.g. Bendigo, Ballarat) was There was no strong evidence for a taken as an indicator of security of supply (sliding scale: 0 = no restrictions, 4 relationship between average water = extreme restrictions). The level of restrictions at 31 January 2004 was consumption per household (by taken as the reference point69 because the greatest uptake of rebates water authority) and uptake of occurred in that year. This was considered reasonable, even though the rebates.71 Nor was there evidence for expenditure data span 3 years because levels of restrictions have been a relationship between the average reasonably static. (Only one of the major urban centres, Melton, changed its household water bill (by water level of summer restrictions between 31 January 2004 and 31 January 2005.) authority) and uptake of rebates.72

Water restriction main urban centre January 2004 Rebate Expenditure per customer $5.00

None <$2.00 $4.50

Low $2.00-$2.50 $4.00 Lower Murray Moderate Grey = areas >$2.50-<$3.00 $3.50 High excluded from analysis due to $3.00-$4.00 $3.00 Extreme water authority mergers $2.50 >$4.00 $2.00

$1.50 ColibanGoulburn North East Valley $1.00

$0.50

Central East ($/customer) rebates of Uptake $0.00 Highlands 00.511.522.533.544.5 Western Glenelg Melbourne Urban Level of water restrictions in major population centre 31 January 2004

Portland Coast Central Gippsland South West Barwon South Gippsland Westernport Figure 8. Relationship between uptake of Water Smart Homes and Gardens rebates by water authority and level of 66Victorian Government White Paper: Securing Our Water Future Together,June 2004, water restrictions. Uptake of rebates is Department of Sustainability and Environment, East Melbourne, p.96. expressed as the total value of rebates 67On 1 July 2005, Glenelg Water, Portland Coast Water and South West Water merged to form by water authority (at April 2006) Wannon Water. These water authorities were excluded from the analysis. divided by the total number of 68Data from Essential Services Commission (2006) Performance of urban water and sewerage customers by water authority businesses June 2004–July 2005, Essential Services Commission, Melbourne. ($/customer). Level of water 69Data from Department of Primary Industries ‘Victorian Resources online’. restrictions is given for the largest population centre by water authority 70Z-test on Spearmann rank order correlation, correlation co-efficient = 0.83, Z=-3.12 n= 15 P<0.002. jurisdiction at 31 January 2004 (0= no restrictions, 1 = low restrictions, 2= 71Z-test on Spearmann rank order correlation, correlation co-efficient = -0.33, Z=1.23 n= 15 P=0.22. moderate restrictions, 3 = high restrictions, 4 = extreme restrictions). 72Z-test on Spearmann rank order correlation, correlation co-efficient = -0.02, Z=0.06 n= 15 P=0.94.

26 Victorian Water Trust Broader impact of VWT investment on security — safety of water resources and the impact of wastewater on the environment

Investment from the Victorian Water Trust has improved the security of water 5. The point discharge of 90 ML pa of resources by improving the safety of the water resource, and the safety of secondary treated effluent to an how wastewater is disposed, in the following ways (Figure 9): alpine waterway is being 76 A. Improved quality and security of drinking water eliminated (VWT investment of $1 million in the $3.43 million B. Reduced risk of environmental contamination, such as to potable water Mount Buller Water Recycle and supplies (This has a river-health connection because toxic algal blooms Conservation Project) are associated with low flows and high nutrient levels.) C. Improved safety of water C. Improved safety of water delivery and treatment infrastructure. delivery and treatment infrastructure A. Improved quality and security of drinking water 6. Occupational health and safety 1. 5,177 lots in 12 townships are to be provided with improved water supplies costs have been reduced by to alleviate problems associated with the palatability, microbial quality or approximately $0.04 million pa arsenic levels in the current supply, and to improve security of supply73 in the Macalister Irrigation District (VWT investment of $3.625 million from the Country Towns Water Supply through channel automation and Sewerage Program — Priority 1 Project) reducing injuries associated B. Reduced risk of environmental contamination with the manual operation of regulators by water authority staff 2. 11,748 lots in 37 townships are to be provided with sewerage services to (VWT investment of $8 million in mitigate public and environmental health risks (Total VWT investment of the Macalister Program)77 $34.673 million from the Country Towns Water Supply and Sewerage Program comprising 5,871 lots in 23 townships from investment of 7. The upgrade of would $16.808 million in the Priority 1 Project; 3,002 residences in three enable it to safely pass a flood townships under the $12 million Gippsland Lakes Project; 2,875 with a 1:100,000 chance of residences under the Innovations Project with an investment of occurring in any one year — a $5.865 million) significant improvement on the 1:13,000 flood Eildon could 3. The Regional Outfall Sewer will be brought into compliance with the withstand previously78 (VWT Environmental Protection Act through odour elimination (VWT investment investment of $4 million in the 74 of $25 million in the $121 million Gippsland Water Factory) $52 million Eildon Dam 4. The point discharge of 90 ML pa of secondary treated effluent to an alpine Improvement Project through waterway is being eliminated75 (VWT investment of $4.18 million in the the Goulburn Broken Program). $8.35 million Water Reuse and Conservation Project)

73Memorandum, 8 July 2005, B. Labza, Drinking Water Regulatory Unit, Department of Human Services. 74Gippsland Water Factory Stage 1 Standalone Project: Strategic Assessment and Business Case, February 2005, Central Gippsland Rural Water Authority, Traralgon. 75Mount Business Case, November 2004, Mount Hotham Alpine Resort Management Board, Mount Hotham. 76Water Recycle and Conservation Project Business Case, May 2005, Mount Buller and Alpine Resort Management Board, Mount Buller. 77Benefit Cost Analysis of the TCCS Project for the Macalister Irrigation District — Stage 1 and 2 (updated assessment), February 2005, URS Australia Pty Ltd, South Bank. (Note that Central Goulburn 1234 Channel Automation Project likely also would improve occupational health and safety, but this benefit is not recognised in the business case). 78http://www.eildonproject.com.au/ProjectOverview.htm.

Accelerating Sustainable Water Management 27 Nichols Point 6. Reduced risk of injury from manually operating channel Manangatang regulators through automation of irrigation districts Underbool 4&5. Reduction in discharge of Murrayville treated effluent to sensitive Bethanga alpine waterways by 180 ML pa Tungamah Nhill Korong Vale Eskdale Oxley Glenrowan Newbridge Milawa Harrietville

Mt Macedon Gordon/Barrys Reef 7. Eildon Dam upgraded to safely withstand a 1 in 100,000 year flood Merino Glenmaggie Congulla Blackwood/Simmons Reef Macarthur Loch Sport The Honeysuckles Dartmoor Nyora Poowong Seaspray Peterborough Loch Landsborough Wye River/Separation Creek Kennett River

Legend 3. Regional Outfall Sewerage bought into compliance with the 1. Townships receiving water supply improvements Environmental Protection Act

2. Type of environmental risk mitigation from sewering townships

Township drainage to waterway

Township located on waterway

Township located at top of catchment

Figure 9. Map showing the contribution of different VWT investment programs to the safety of Victoria’s water resources and water infrastructure.

Broader impact of VWT investment on security — Current investment from water availability and infrastructure capacity for the Victorian Water Trust has contributed to generating future growth 11,753 ML pa of water for growth. Investment of the Victorian Water Trust has provided fit-for-purpose water Combined with future investment for future agricultural, industrial or commercial development, population in the Wimmera- Pipeline growth or as insurance against climate change through the following Project, total water for growth to mechanisms: be generated by Victorian Water A. Reducing per capita demand through improving water-use efficiency or Trust projects is approximately providing potable substitution 31,753 ML pa. B. Increasing in the capacity of water supply and treatment infrastructure.

28 Victorian Water Trust The water savings from current VWT investments to support future growth are 2. In the Robinvale Irrigation District, constituted of the following: the capacity of the current 1. Potable water savings for the Melbourne metropolitan area of 1,518 ML pa distribution system is insufficient (see page 23 for derivation) to meet demand for water at peak times. This limits productivity, 2. 7,225 MLpa of water use efficiency gains available for on-farm production particularly of table grapes which (VWT Water Smart Farms Initiative) have a high requirement of water 3. 2,920 ML pa recycled water to support industrial growth in Gippsland (VWT at certain critical growth stages. investment of $25 million in the $121 million Gippsland Water Factory) Victorian Water Trust investment 4. Up to 90 ML pa of recycled water for snow making and non-potable use in is supporting installation of a the Mount Buller alpine village high-pressure pipeline to provide 81 In addition, future investment will generate: water on-demand (VWT investment of $20 million from the 5. Up to 20,000 ML pa for growth in the Wimmera-Mallee Region (VWT Sunraysia Program in the investment of $49.885 million in $501 million Wimmera-Mallee Pipeline $40.5 million Robinvale Upgrade). Project). Investment from the Victorian Water Trust has also increased in the capacity of water supply and treatment infrastructure, constituted of: 1. Reduced demand on the Regional Outfall Sewer, where capacity was projected to be exceeded by 2008 without intervention, enabling industrial and domestic growth in Gippsland (VWT investment of $25 million in the $140 million Gippsland Water Factory) 2. Construction of a 30 ML reservoir for storage of recycled water on Mount Hotham [on a previously disturbed site]79 (VWT investment of $4.18 million in the $8.35 million Mount Hotham Water Reuse and Conservation Project).

Broader impact of VWT investment on security — reliability of supply In addition, investment from the Victorian Water Trust has improved the reliability of irrigation water supplies in the following ways: 1. In the Macalister Irrigation District, channel automation has reduced the time between orders being placed and water being delivered to farms from 3–4 days to less than 1 day, potentially supporting additional pasture growth and milk production for dairy farmers80 ($8 million VWT Macalister Program)

79Mount Hotham Alpine Resort Business Case, November 2004, Mount Hotham Alpine Resort Management Board, Mount Hotham. 80Benefit Cost analysis of the TCCS project for Macalister, Stage 1 & 2, April 2005, URS Pty Ltd for the Department of Sustainability and Environment, East Melbourne. 81Regional business case: Irrigation system upgrade Sunraysia-Mildura Region, 23 November 2005, prepared for Lower Murray Water and First Mildura Irrigation Trust.

Accelerating Sustainable Water Management 29 Broader impact of VWT investment on security — knowledge and capability to support sustainable water management

The Our Water Our Future White Paper recognises a role for government to The Victorian Water Trust support research that lays a comprehensive foundation for sustainable has a current investment of 82 management of our water into the future. Current investment from the $14.974 million in research Victorian Water Trust in knowledge building is detailed in Table 3. The Victorian Water Trust invests in a broad range of fundamental water research comprising: particularly in the areas of river health, sustainable irrigation technology and A $3.008 million in recycling. fundamental research to Support to get innovative proposals from the concept stage, though improve management of feasibility studies, to readiness for full-scale delivery is crucial to the Victoria’s water resources development of an innovative and accountable water sector. Consequently, the VWT invests in project-specific research, such as feasibility B $10.421 million to investigations, where there is an opportunity to substantially advance investigate opportunities sustainable water management. for specific projects An important legacy of the VWT will be a shared knowledge of the outcomes the VWT achieves, including sharing of innovation and technological C $1.545 million for advances where broadly applicable.83 In addition to project-specific monitoring and evaluating monitoring and evaluation, the Victorian Water Trust invests in river-health the impact of management monitoring to elucidate the composite impact of management actions, and in actions on water systems evaluation of the performance and potential of channel automation (excludes project-specific technology. monitoring and evaluation). Current VWT investment to support new technologies and the novel application of existing technologies to improve management of the water resource includes: 1. World first use of membrane ultrafiltration to produce class A recycled water for snowmaking84 (VWT investment of $4.18 million in the $8.35 million Mount Hotham Water Reuse and Conservation Project) 2. Installation of new channel automation technology (Total Channel ControlTM) in the Central Goulburn and Macalister irrigation districts. This technology is supplied by a small, Victorian-based company ($23 million Central Goulburn 1234 Project; $8 million Macalister Program) 3. Trialling of innovative water supply and sewerage solutions in 15 country towns Presently, options are being developed in partnership with water authorities and local government that include the first applications of technologies in Victoria (VWT investment of $6 million from the Country Towns Water Supply and Sewerage Program: Innovation Project). In addition, future investment from the Victorian Water Trust will support: 4. The first investigation of the feasibility of aquifer storage and recovery for regional Victoria (VWT investment of $0.095 million in the $0.119 million Stage 1 Detailed Feasibility Assessment of Aquifer Storage and Recovery at Brauerander Park, Warrnambool).

82Victorian Government White Paper: Securing Our Water Future Together,June 2004, Department of Sustainability and Environment, East Melbourne, p.152. 83Victorian Water Trust Investment Strategy, November 2003, Department of Sustainability and Environment, East Melbourne, p.14. 84Mount Hotham Alpine Resort Business Case, November 2004, Mount Hotham Alpine Resort Management Board, Mount Hotham, p.26.

30 Victorian Water Trust Research Fundamental research Developing projects Monitoring & evaluating area impacts

Water use Valuing water for the future: Improving Strategic flow measurement Linking farms, catchments efficiency: off farm irrigation efficiency ($20,000) ($9,600,000) and channel automation farm/on farm ($300,000) Integrated systems for water resources Water Swap project brief management in Northern Victoria ($20,000) ($240,000)

Integrating irrigation and plant systems Implementation of market in Victoria's dairy industry ($747,258) based instruments to drive improvements in NRM ($386,174)

Investment subtotal $1,007,258 $10,006,174 $300,000

River health Development of the FLOWS Feasibility assessment of the Victorian Environmental methodology for estuarine systems decommissioning of Nicholson Flows Monitoring and ($125,000) River Reservoir ($55,000) Assessment Program: Design ($55,000)

Setting objectives for fundamentally Investigation into the impacts of Monitoring impact of changed systems ($21,800) sediments on water quality in environmental flows: ($90,000) Thomson & Macalister ($60,000)

Determining the ecology and hydrology Risk assessment for Monitoring impact of of ephemeral streams ($50,000) management of Lake environmental flows: Connewarre ($175,000) Glenelg ($50,000)

Investigation of the ecological impact of Werribee Plains Water Watch cold water pollution ($80,000) ($530,000)

Climate change implications for river EPA biological monitoring of health ($19,000) river health ($550,000)

Willows: options for management ($100,000)

Innovative techniques for managing mulitple threats to high value aquatic systems (Dowd Morass, Gipplsand Lakes) ($19,000)

Investment subtotal $414,800 $320,000 $1,245,000

Security Best practice benchmarks in water use Detailed feasibility assessment for commercial and industrial water of aquifer storage and recovery consumers ($100,000) at Brauerander Park, Warrnambool ($95,200)

Virtual water cycle of Victoria ($189,000)

Regional sustainability framework ($654,099)

Investment subtotal $943,099 $95,200

Reuse and Hormones in Victorian STPs and recycling recycled water ($250,184)

Health risk assessment: recycled water ($151,490)

Advancing organisational receptivity to alternative water sources ($241,350)

Investment subtotal $643,024

Total VWT $3,008,181 $10,421,374 $1,545,000 investment

Accelerating Sustainable Water Management 31 Encourage the increased re-use and recycling of water in Victoria

Contribution to ‘Water for the future target’ — Increase water recycling to 20% by 2010 for Melbourne

The water recycled or re-used in the Melbourne metropolitan area is Investment from the Victorian constituted of the following: Water Trust of $4.96 million 1. 6 ML pa saved through installation of permanent greywater re-use has contributed to recycling systems as at 30 April 2006 (VWT investment of $0.120 million from the or re-using an estimated Water Smart Homes and Gardens Rebate Scheme for the areas serviced 582 ML pa for Melbourne, or by City West Water, South East Water, Yarra Valley Water) about 0.2% of Melbourne’s 2. At least 180 ML pa recycled water delivered by the Werribee Recycled wastewater.85 Water Scheme (VWT investment from Werribee Plains Vision of $3.339 million in the Werribee Recycled Water Scheme — an extension Investment from the Victorian of the West Werribee Dual Water Supply Project and the Werribee Water Trust is facilitating the Technology Precinct Project) recycling or re-use of over 3. Re-use of 394 ML pa of water in industrial processes (Watersmart 14,070 ML pa of water outside Industry Demonstration Projects; VWT investment of $1 million from the Melbourne. Werribee Plains Vision) 4. 2 ML pa laundry water recycled for garden watering at a public housing estate (VWT investment of $0.4955 million in the $1.2 million Atherton Gardens Water Conservation and Water Recycling Project). Outside the Melbourne metropolitan area investment from the Victorian Water Trust has contributed to the following: 5. Over 10,972 ML pa of on-farm water savings by supporting irrigators to install drainage re-use dams (VWT investment from the Water Smart Farms Initiative contributing to RCIP sustainable irrigation programs)86 6. 3 ML pa saved through installation of permanent greywater re-use systems as at 30 April 2006 (VWT investment of $0.062 million from the Water Smart Homes and Gardens Rebate Scheme for the areas serviced by regional urban water authorities) 7. 2,920 ML pa water to be recycled to support industrial growth in Gippsland (VWT investment of $25 million in the $140 million Gippsland Water Factory) 8. Up to 90 ML pa of recycled water to be available for snow making and non- potable use in the Mount Hotham alpine village (VWT investment of $4.18 million in the $8.35 million Mount Hotham Water Reuse and Conservation Project) 9. 85 ML pa of recycled water to be available for snow making and non- potable use in the Mount Buller alpine village87 (VWT investment of $1 million in the $3.43 million Mount Buller Water Reuse and Conservation Project).

85Calculation based on Melbourne producing 855 ML/day wastewater (312,075 ML pa). 86Water Smart Farms Mid-term Review, April 2006, Chandris Pty Ltd for the Department of Sustainability and Environment, East Melbourne, reports total water recycled from the program as 4,922 ML pa by June 2005. This figure was updated with data from 2005–06 from the latest available RCIP reports (March 2006) which indicated savings from 2005–06 of 6,050 ML pa.

32 Victorian Water Trust Broader impact of VWT investment on encouraging re-use and recycling of water — demonstration and familiarisation

Investment from the Victorian Water Trust is contributing to more than 560,000 people per annum increasing their familiarity and understanding of water recycling.

The demonstration and education activities around water recycling include: 1. In addition to future visitors, the 9,112 visitors to the Melbourne Water Discovery Centre, Werribee from October 2005 until June 2006 had an opportunity to interact with the recycled water exhibit. Over the same period, approximately 8,680 people visited the mobile water recycling model88 (supported by investment from VWT Werribee Plains Vision) 2. $150,000 was provided to Southern Rural Water to help farmers in the Werribee Irrigation District implement smarter irrigation practices on-farm under the water recycling scheme (supported by investment from VWT Werribee Plains Vision) 3. Mount Hotham has 250,000–350,00089 visitors annually (150,000–170,000 from Victoria) who will gain familiarity with and confidence in recycled water through contact with snow manufactured from recycled water, and through the third-pipe system in the alpine village (all bathroom fittings in the alpine village will be at least AAA-rated, providing an additional demonstration of water conservation opportunities.)90 (VWT investment of $4.18 million in the $8.35 million Mount Hotham Water Reuse and Conservation Project) 4. Mount Buller has approximately 250,000 winter visitors, two-thirds of whom will have direct contact with recycled snow through skiing or snowboarding91 (VWT investment of $1 million in the $3.43 million Mount Buller Water Reuse and Conservation Project) 5. Atherton Gardens Estate has 1,500 residents. Tenants see the recycling and stormwater harvesting projects, and signage is used to increase awareness of water conservation and recycling92 (VWT investment of $0.496 million in the $1.2 million Atherton Gardens Water Conservation and Water Recycling Project).

87Water Recycle and Conservation Project Business Case, May 2005, Mount Buller and Mount Stirling Resort Management Board, Mount Buller, p.29. 88Visitor figures provided by the Education Projects Manager, Melbourne Water, 29 June 2006. 89The average number of paying visitors pa for the 5 years to 2004 298,454 is used in calculations, as reported in Mount Hotham Alpine Resort Business Case, November 2004, Mount Hotham Alpine Resort Management Board, Mount Hotham. 90Mount Hotham Alpine Resort Business Case, November 2004, Mount Hotham Alpine Resort Management Board, Mount Hotham. 91Water Recycle and Conservation Project Business Case, May 2005, Mount Buller and Mount Stirling Resort Management Board, Mount Buller, p.29. 92Atherton Gardens Water Conservation and Water Recycling Project Business Case, June 2004, Department of Human Services, Melbourne.

Accelerating Sustainable Water Management 33 Victorian Water Trust as an investment vehicle

Cost per megalitre of water savings to be generated

The cost of water savings is an important consideration when investing in projects. Figure 10 shows the approximate cost per megalitre of water ‘saved’ from total investment in a range of Victorian Water Trust projects.93 However, water savings are seldom the sole benefit of projects. For example, the Gippsland Water Factory will improve the quality of treated wastewater that is released to the environment; the Atherton Gardens Water Conservation and Water Recycling Project is raising awareness of water conservation among public housing tenants.

Figure 10. Approximate cost of total water savings ($/ML) for Victorian Water Trust programs based on the total investment from all sources.

93Costs based on an NPV approach over 50 years from 2003–04. Investment in 2003–04 and 2004–05 has been expressed in 2005–06 dollars by adjusting for CPI of 2.25% each year. Water savings are summed and not discounted.

34 Victorian Water Trust Leverage of VWT investment

Figure 11 shows the proportional contributions made by different investors in Calculating how much investment in capital projects greater than $3 million supported by the Victorian Water water has been stimulated by seed Trust. 94 funding from the Victorian Water Trust is difficult for initiative The water savings from the $23 million Victorian Water Trust investment in programs constituted of many the Central Goulburn 1234 Project will be made available for improved smaller activities with different environmental flows in the Snowy River. Hence, this VWT investment in funding contributors. However, funds channel automation will be recovered from the Victorian, New South Wales leveraged from initiative programs and Commonwealth governments’ Joint Government Enterprise (trading as may be substantial. For example, Water for Rivers) at a rate per megalitre that is yet to be determined. investment of $2.35 million from the Similarly, seed investment of $8 million to automate water distribution Water Smart Farms Initiative in on- systems in the Macalister Irrigation District leveraged a $20 million farm water-use efficiency works the investment from the National Water Initiative to extend the automation Shepparton Irrigation District is technology to the remainder of the Macalister Irrigation District. estimated to have resulted in investment of $3.87 million by irrigators.95

VWT Other State Commonwealth Water authority Private Sunraysia Program Local government

Wimmera Mallee Pipeline Tungamah Stock and Domestic Pipeline Goulburn Strategic Measurement

Mo

Mt Hotham Water Reuse & Conservation Project

Werribee Plains Vision Mt Buller Water Reuse & Conservation Project

Gippsland Water Factory

Figure 11. Map with pie charts showing the contribution from co-investors to capital projects supported by the Victorian Water Trust where total investment is greater than $3 million (excluding channel automation projects discussed above).

94Commonwealth investment for Goulburn Broken Program Strategic Flow Measurement is not confirmed at time of publication. 95Water Smart Farms Mid-term Review, April 2006, Chandris Pty Ltd for the Department of Sustainability and Environment, East Melbourne, p.18.

Accelerating Sustainable Water Management 35 36 Victorian Water Trust