Victorian Government White Paper Securing Our WaterFuture Together Published by the Victorian Government Department of Sustainability and Environment Melbourne, June 2004 Also published on www.dse.vic.gov.au This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Authorised by the Victorian Government, 8 Nicholson Street, East Melbourne. Printed by Vega Press ISBN 1 74106 826 6 For more information contact: Department of Sustainability and Environment PO Box 500, East Melbourne Victoria 3002 © State of Victoria, Department of Sustainability and Environment 2004 Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Find out more information about DSE on the internet at www.dse.vic.gov.au SECURING OUR WATER FUTURE TOGETHER 1 Contents Premier’s Foreword 3 Minister’s Foreword 5 Chapter One: A Secure Water Future for Victoria 6 Meeting the Challenge 10 A Pathway to Sustainable Water Management 11 Chapter Two: Water Resources and Their Allocation 14 Our Water Resources and Their Values 17 Improving the Water Allocation System 18 The New Water Allocation Framework in Practice 22 Long-Term Water Resource Planning 26 Varying Water Entitlements 29 Improving Compliance and Accountability 31 Managing Future Risks 34 Addressing Impacts of Catchment Land Use 35 Chapter Three: Restoring our Rivers and Aquifers for Future Generations 38 Tackling all Aspects of River Health 42 Additional Resources for Protecting and Repairing Rivers and Aquifers 43 The Environmental Water Reserve: From Concept to Reality 44 Enhancing the Environmental Water Reserve in Stressed Rivers 47 Improving Environmental Flows in the Snowy and Murray Rivers 53 Thomson Macalister River System – Repairing the Damage From Supplying Water to Melbourne 58 Managing the Environmental Water Reserve 62 Chapter Four: Smarter Use of Irrigation Water 66 Refining Water Entitlements to Improve Choice 69 Simplifying and Providing More Certainty About Water Shares 72 Dealing with Channel Congestion and Stranded Assets 76 Upgrading and Rationalising Distribution Services 82 Helping Water Use on Farms to be Sustainable 87 Chapter Five: Smarter Water Use in Our Cities and Towns 90 Policy Framework for Sustainable Urban Water Management 93 Balancing Water Supply and Demand 94 Reducing Water Consumption 96 Actions to Deliver Water Savings 98 Recycling and Alternative Water Supplies 106 Securing Our Drinking Water Supplies 119 Providing Safe and Reliable Drinking Water and Sewerage Services 121 Getting the Right Planning Framework and Regulation 122 Chapter Six: Pricing for Sustainability 124 Structure and Design of Prices Driving Sustainable Use 127 Environmental Contribution 129 Pricing to Recover Service Delivery Costs 131 Long-Term Interests of Customers 134 Revised Concession Arrangements 136 Chapter Seven: An Innovative and Accountable Water Sector 138 Improved Clarity and Allocation of Roles and Responsibilities 142 Improved Capability and Effectiveness 146 Improved Integration and Coordination 151 Incentives for Innovation and Improved Performance 152 Glossary of Terms 154 Appendices 156 Abbreviations 168 Figures and Tables 169 2 CHAPTER ONE – A SECURE WATER FUTURE FOR VICTORIA These actions will help us improve water management from the moment rain falls in our catchments, enters aquifers and rivers, and moves to homes, farms and business, to the recycling plant. SECURING OUR WATER FUTURE TOGETHER 3 Premier’s Foreword Australia is the driest inhabited continent in the world and yet, per capita, we are among the highest users of water in the world. As a nation we are facing one of the biggest challenges of our time: to maintain and sustain water supplies for tomorrow’s Australia. In Victoria, water is at the top of our agenda. The White Paper – Securing Our Water Future Together – represents one of the most innovative, integrated water Victoria has established a $320 million Victorian Water Trust to strategies in Australia, indeed the world. The strategies in the rebuild our irrigation systems, revive our waterways and make White Paper, summarised here, have been formed in consultation our water systems more efficient. We have also introduced with all sectors of the Victorian community. These actions will groundbreaking water saving legislation to become the first State help us improve water management from the moment rain falls in Australia to ensure water saving measures are integrated into in our catchments, enters aquifers and rivers, and moves to all new homes. homes, farms and business, to the recycling plant. In recent years Victoria has become a state of water savers as The strategies will ensure that we all play our part in securing our homes, businesses and farmers rise to meet the challenge of a water future together, as we grow as a State. dwindling water supply. Together we will continue to be diligent in our management of Victoria continues to lead the nation in sustainable water water so that we can continue to enjoy the vital benefits it brings. management. Victoria is acting on the agreement it secured with the Commonwealth and New South Wales Governments to return flows to the iconic Snowy River. Future generations will be able to enjoy the beauty of one of the country’s most famous rivers. The River Murray is the nation’s next challenge. Victoria will continue to be a driving force in deliberations at the Council of Australian Governments and interstate forums, such as the Murray-Darling Basin Ministerial Council to ensure the health of the River Murray is improved. Steve Bracks There are more challenges ahead. Premier of Victoria Business, agriculture and exports are growing and need secure supplies of water. Victoria’s population is growing too. By 2030, Melbourne alone will accommodate more than one million additional people and regional Victoria another 350,000. As a Government we are preparing for this population increase and growing our economy, while protecting our unique environment, recognising that a healthy water supply is pivotal to our future. Victorians should be proud of what we have achieved so far in conserving our most precious resource. We will now continue to secure our water future, together. SECURING OUR WATER FUTURE TOGETHER 5 Minister’s Foreword Water is essential to our everyday lives: we use it for drinking, washing and watering – the very basic human needs. Our communities thrive on it, our economy relies on it and our environment survives on it. Over recent years it has become increasingly clear that our The White Paper – Securing Our Water Future Together – is a current water use is not sustainable. Our rainfall is becoming comprehensive, integrated approach to using our water wisely to less reliable and, as we experience our eighth year of drought, ensure that Victoria can continue to have healthy water resources Victorians understand that we need to change the way we use to support growing communities and a thriving economy over and value water so we protect our supplies for future the next 50 years: generations. • We will support smarter urban water use across Victoria with Victorian communities have responded quickly to our water a range of initiatives including education and incentive challenges and have made many water savings through smarter, programs, regulations and legislation, and smarter water more efficient water use in homes, farms and businesses. pricing to reduce demand and increase recycling. As part of the ongoing process to address our wider water • We will ensure that our water management provides security challenges, last year the Bracks Government released a discussion for agriculture and other businesses that rely on water with paper – Securing Our Water Future – outlining more than 80 reliable, secure entitlements, the flexibility and option to proposals to reform the way we use and manage our water. trade water for financial return and investment into more efficient irrigation systems and on-farm water use. Victorian communities, organisations and individuals have come to the table giving their views and ideas as to how we should • We will also put water back into our waterways. Rivers and shape our water future. After months of consultation, more than groundwater are the lifeblood of our economy and underpin 60 meetings across the State and 670 submissions, we are ready our communities, economy and environment. By recognising to take the next step, together. environmental water rights we will in turn secure the long- term health of our irrigation industry and tourism and recreation activities. Victorians should be proud of what we have achieved so far in conserving our most precious resource. We will now continue to secure our water future, together. John Thwaites Minister for Water Chapter One: Water supports our everyday lives – at home, at work or play, water is fundamental to 1 our way of life. A Secure Water Future for Victoria Key Challenges 1 >> Secure, reliable water supplies for our homes, our farms and industry while meeting the needs of the environment. >> Sustainable water management. Fundamental Principles for Water 2 Management in Victoria >> The management of water will be based >> Users of the