• Generally you can take and use water from a waterway, bore, dam, spring or soak for domestic and stock use without a licence. However, if there is a Crown frontage or other land between your property and a waterway you may need a licence for domestic and stock use. ‘Domestic and stock use‘ means use for household purposes, the watering of stock, pets and the irrigation of a kitchen garden. It does not include use for dairies, piggeries, feed lots, poultry or any other intensive or commercial use. It is also permissible to water up to 1.2 hectares around a house or outbuilding for fire prevention so long as the water comes from a spring, soak or a dam.
• A ‘waterway‘ includes a river, creek, stream, watercourse or other natural channels where water regularly flows, whether or not the flow is continuous. Also included are lakes, lagoons and swamps if they are natural and through which a current that forms part of a river, creek, etc, passes. The flow need not be continuous. If a natural channel has a catchment of 60 hectares or more, the relevant Water Corporation will generally determine the channel to be a waterway.
• A ‘dam‘ means anything in which by means of excavation, a bank, a barrier or other works water is collected, stored or concentrated
• A ‘bore‘ means any bore, well, excavation or any artificially constructed or improved underground cavity that is used to collect, store, extract or observe groundwater or for drainage, desalination or disposal of matters, or to recharge an Aquifer.
• The right to use water for domestic and stock use that comes from a waterway or bore arises when the user has access to the waterway or bore by a public road, public reserve or occupies land through which the water flows or the bore is situated. Also covered is a waterway where the banks and bed belong to the Crown and the user occupies the adjacent land.

• A person has the right to use rainwater for any purpose so long as it is collected from a roof or similar means.

• A licence is not required for water that is re-used and collected in a dam which meets certain size requirements. These dams are designed to stop nutrient rich drainage leaving the farm and are commonly associated with irrigation use. Contact the relevant rural Water Corporation for more information on the specifications of these dams.

• A licence is required for all other uses of water (i.e. apart from domestic or stock use outlined above, rainwater and re-used water). These water licences are required for water used for irrigation, in dairies, piggeries, feed lots, poultry farms and other intensive or commercial uses.
• ‘Take and use’ licences for groundwater are called groundwater licences and those issued for surface water are called diversion licences.
• It is an offence to take or use water unless authorised or permissible under the Water Act 1989.

• A ‘take and use’ licence is required for all farm dams supplying water for irrigation and commercial uses and for all domestic and stock dams that are built on waterways. In these circumstances, a Works licence will also be required to operate the dam, although this is usually incorporated into the ‘take and use’ licence document.
• A licence is not required for farm dams that are not on a waterway that are used for domestic and stock supplies.

• A range of incentive schemes are available across Victoria for water management in both capped and uncapped catchments. Irrigated properties may be eligible for farm plan and implementation incentives. In some areas, incentives are available for the purchase of water entitlements and dam construction proposals. For details contact DSE, DPI or your local CMA.

• Irrigators in irrigation districts may be granted water rights (including water shares and water licences) by the relevant rural Water Corporation, subject to the amount of water available.

• A Water Corporation may approve an application to transfer a water right, or for a ‘take and use’ licence.
• A transfer can be temporary or permanent.
• Different rules apply to various transfers and Water Corporations should be contacted to find out what the rules are.

• The application is made to the relevant Water Corporation in a form designated by the authority and has to be accompanied by the application fee. The Water Corporation may require the applicant to notify interested parties (neighbours within 1km) and the general public by advertising in a newspaper of the application, so it can consider any objections or comments by interested parties, for example downstream users.
• If the licence is granted, it will be subject to conditions relating to when and how much water can be taken, annual payments to be made, requirements to protect the environment and so on.
• If an application is made for a licence in a WSPA, the application will be dealt with in accordance with the management plan for that area.
• In many catchments new licences are not issued because the available water resources are fully taken up by existing users, however, in these catchments it may be possible to buy a licence from an existing user with the approval of the relevant Water Corporation.

• The SEPP (Waters of Victoria) has specific requirements for irrigation channels and drains. Artificial irrigation channels and drains must be designed and managed so that their waters are not harmful to humans and do not have unacceptable impacts on animals, and so that the impact of their flow, sediments, nutrients, salt and other pollutants on surface water and groundwater is minimised.
• In most irrigation districts, CMAs and Water Corporations will have a regional plan in place to reduce irrigation drain discharge impacts, and farmers should ensure their operations are consistent with these.

• The licence application process for groundwater is much the same as that for surface water. Melbourne Water does not issue groundwater licences. Rural Water Corporations carry out the groundwater licensing function.

• A licence is required to construct, alter, operate, remove or decommission a bore or any works on a waterway including a dam.
• A licence is also required to construct, alter, operate, remove or decommission a private dam or a dam off a waterway that is:
  – 5 metres or more high and a capacity of 50 megalitres or more, or
  – 10 metres or more high and a capacity of 20 megalitres or more, or
  – 15 metres high regardless of its capacity.
• The application is made to the relevant Water Corporation and has to be accompanied by the application fee.
• Any dams on a waterway require a licence, irrespective of the size and capacity or its intended use.
• Failure to obtain the licence for works is an offence, as is the failure to adhere to the conditions of any licence for works.
• A licence to construct works is different to a licence to use water. If a ‘take and use’ licence is required the relevant Water Corporation will determine this application before it determines a Works licence. This avoids the potential for a bore or a dam being constructed without a guarantee that a licence to take and use water will be issued.
• The issuing of a licence to construct works under the Water Act 1989 does not remove the need for other approvals, so it is necessary to check with the local Council or planning authority as to whether additional permits apply.

Historically, the right to water in Victoria was regarded by many as being ‘linked‘ to the land that the farmer owned. The amount of water that a farmer could draw from the irrigation system (known as a water right) was expressed in volume (megalitres) and each year the farmer would get a percentage of that water right. The level of that percentage would vary, depending on how much water was in the storage dams in that particular year.

The water right could be traded to other land owners and was often of very significant value – sometimes more than the land to which it had been attached. If it was sold, it would then ‘reattach‘ to the purchaser’s land.

In 2004, the Victorian Government released an action plan titled Our Water Our Future. Unbundling formed part of that action plan. Unbundling involves the splitting of the water right into its distinct components:

• A water share – A legally recognised, secure share of water available to the farmer to irrigate his or her crops or pasture
• A delivery share – An entitlement to have water delivered via infrastructure to the farmer’s property
• A water use licence – An authority to use water for irrigation on a particular property.

• The process to obtain a Works licence is similar to that required for the ‘take and use’ licence (described above).

• For dams on waterways, particular focus will be on the impact of the dam on the environment and other users. If there are high ecological values, an Environmental Assessment Report may be required and it may be necessary for the applicant to establish that all alternatives to the construction of the dam on that site have been considered.
• If approved, the relevant Water Corporation may attach conditions regarding the standard of construction, qualifications of those undertaking the work, etc.
• Particular considerations apply to works for the storage of water within a waterway such as the availability of water to satisfy other entitlements.
• The relevant Water Corporation can give directions to the owner to ensure compliance with the licence.
• If those directions are not complied with, the relevant Water Corporation has the power to carry out the work and charge the cost to the owner.

• Conditions may be attached to ‘take and use’ licences concerning the operation of a dam. These are known as operating licences. These conditions can apply to dams that are regarded as potentially hazardous and may contain surveillance and maintenance requirements.
• A common condition will be to operate the dam to allow flows to pass downstream of the dam during certain times of the year.

• If the relevant Water Corporation believes that a private dam is hazardous to life or property, the owner of the dam may be ordered to improve the dam, undertake surveillance or remove it. Similarly, a proposed private dam may be required to be re-sited, built to a specified standard or not built at all.
• As with the failure to carry out directions regarding works, the relevant Water Corporation has the power to carry out the work and charge the cost to the owner.

• Assuming the dam is only used for aesthetic purposes (and not for domestic, stock, irrigation or commercial purposes), a ‘take and use’ licence will not be required, although a Works licence may be required for its construction.
• The relevant Water Corporation may make it a condition of a Works licence that the licensee procures water for the dam by transfer or by other means. These conditions are likely to be placed on licences for dams in catchments where the water resources are capped.

• It is recognised that some control may be required in relation to dams built on small acreages arising from a subdivision. Controls may exist under a Streamflow Management Plan and the local Council may also have controls.

• Approval is required if a person wishes to dispose of any matter underground by means of a bore. The Water Act 1989 does not allow the approval of an application to dispose of matter if it would cause pollution of groundwater or be detrimental to any Aquifer or bore.

• Under the Water (Groundwater) Regulations 2002, an occupier of a bore has to give notice to the relevant Water Corporation of the amount taken for domestic and stock use.

• A person has rights to challenge certain actions of the relevant Water Corporation in the Victorian Civil and Administrative Tribunal.

• The Minister for Water can declare the maximum volume of water that can be allocated in a Groundwater Management Area (GMA) or a WSPA. PCVs exist to prevent the groundwater being depleted.

• Certain areas may be declared to be a WSPA in order to protect the area’s groundwater or surface water resources through the development of a management plan. The application requesting that an area become a WSPA can come from a user of the land or a Water Corporation.
• Wide consultation occurs before a WSPA decision is made. Once a decision is made, a consultative committee (which must represent the interests of local landholders) drafts a management plan for the WSPA. The management plan sets out to ensure that the water is managed equitably and sustainably.
• A management plan will usually prescribe monitoring and metering programs, restrictions or prohibitions on the issue of new licences, rules about the transfer of licences, conditions regarding the protection of the environment including the riverine and riparian environment, and in some cases limitations on when and how much water can be taken to ensure that stream flows or groundwater levels are maintained.
• Management plans may also impose restrictions on the operation of private dams that are not licensed and not for domestic or stock use.
• The relevant Water Corporation enforces the management plan. It has the power to direct works to be carried out or equipment installed or to request the removal of certain works.
• Compensation rights exist for those adversely affected by the directions given.

• The relevant Water Corporation can declare that a water shortage exists and can qualify the rights of users either permanently or temporarily.

• Water Corporations can apply for Bulk entitlements and can assign the whole or part of the entitlement to a person who is:
  – the owner of a water share in an irrigation district; or
  – someone who holds a ‘take and use’ licence.

• A prime means of regulating water use is through Regional Catchment Strategies. These documents deal with the approaches needed to protect the water in the catchment.
• Under the CaLP Act, Regional Catchment Strategies can give rise to land use conditions. Land use conditions can impose certain obligations in relation to water and other land management and land use issues.

• In 2004 the Victorian Government put in place a long-term plan for water – Our Water Our Future. The Our Water Our Future action plan committed to undertaking regional sustainable water strategies to plan for long-term water security across Victoria.
• Each sustainable water strategy sets out a long-term regional plan to secure water for local growth, while maintaining the balance of the area’s water system and safeguarding the future of its rivers and other natural water sources.
• In each case the sustainable water strategy will provide a stock-take of all the water resources available within a region, and outline the planning and actions needed to respond to risks and ensure there is secure water for communities, business, industry and the environment into the future.
• The four regions the strategies encompass are Northern Region, Central Region, Western Region and Gippsland Region (see map below). Also see www.ourwater.vic.gov.au/programs/sws Northern Region entral Region Eastern Region

• In capped catchments where no more licences are being issued, farmers are able to transfer their water entitlements. They can either transfer the licence (if the water is taken from a waterway) or they can transfer their water share if the water is taken from an irrigation district.
• A capped catchment is one where full allocation has been made for water for irrigation or commercial use.

• A Water Corporation that holds a licence or a water share can apply to the Minister to have it converted into a Bulk entitlement.

• If you engage in certain acts (which may include a failure to act), you may have to compensate another person who is injured by those acts.
• The acts are: – unauthorised taking or using water – polluting water – carrying out, operating or maintaining unauthorised works.
• If you cause water to flow from your land to other land then you may have to compensate for any injury or damage caused by the water flow. Liability arises where the flow is not reasonable.
• You may also be required to compensate if you interfere (deliberately or negligently) with a reasonable flow of water on someone else’s land and this interference causes injury. The Water Act sets out a wide range of factors that are relevant to determining if a given flow of water is reasonable, including whether any works are authorised, if guidelines have been followed, uses of the land, contours, whether the water was brought onto the land or is stored there, etc.
• If the causing of interference with the flow of water discussed above arises from works constructed before the current occupier took possession of the land, liability can still apply. In this case, the duty is on the current occupier to take reasonable steps to prevent the flow or the interference as the case may be.
• These specific laws in the Water Act concerning civil liability do not replace or remove, at common law, the liability of a land owner for damage caused by water escaping from a private dam on their property.

• Water Corporations have wide powers to carry out their functions.
• Water Corporations have the power to enter land to read meters, inspect works and generally to carry out their functions. They can enter land and carry out works. They are required to give seven days notice if they wish to do this.
• A Water Corporation can reduce or discontinue a water supply if there is a shortage of water.
• The Water Corporation has the power to reduce or discontinue a water supply if the land owner: – fails to comply with a notice to repair inadequate private works – misuses water – takes water contrary to the law – fails to pay money for water supplied – refuses entry to land.
• For a serviced property, the Water Corporation can require the land owner to connect to the authority’s works.

• A Water Corporation may request the removal of trees which are obstructing or damaging its works. There is a right to object to this request, however, if the objection is overruled, the Water Corporation can remove the tree.
• A Water Corporation may require an owner of land to repair their works that connect to works of the Corporation.
• Water Corporations have general powers to give a notice to a person telling them that they have contravened the Water Act 1989, by-laws, a requirement of a Corporation, a condition of a licence or a condition of a management plan and to remedy the contravention within a specified time period. Failure to comply with the notice is an offence.

• Regulation of groundwater in Victoria is achieved through licensing to control the standards of bore construction, and ‘take and use’ licensing of water for irrigation and commercial purposes. People are entitled to take groundwater for domestic and stock purposes (as defined in the Water Act 1989) without a ‘take and use’ licence.
• PCVs have been set for a number of groundwater management areas to limit the amount of groundwater that can be taken. Management plans have been prepared in most WSPAs where there is intensive use of groundwater.

• Water use for plantations is not included in the water entitlement framework.
• Plantation establishment is an ‘as of right‘ development in the Farming Zone of the Victoria Planning Provisions (VPPs), meaning a planning permit is not required to establish a plantation in a Farming Zone unless a particular provision or overlay is triggered. A planning permit for tree planting may be required in zones other than the Farming Zone within the VPP.