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Victorian Minister for Water, Gayle Tierney, in April 2025 announced 16 gigalitres (GL) of water previously set aside for power generation from Blue Rock Dam was to be allocated and shared equally to supply agriculture, Traditional Owners and the environment. The decision was made through the Central and Gippsland Region Sustainable Water Strategy. 

This meant a Bulk Entitlement for 5.33 GL was granted to Southern Rural Water to support operations, expansion or drought-proofing for irrigators in the Latrobe region. In time, this will also lead to economic improvements and the creation of employment. 

An expressions of interest period was held through to 30 July, with 45 eligible expressions received. Volumes sought ranged from 40 megalitres (ML) to 1,800 ML. Although, most were between 100 ML to 500 ML. 

As the volume of water sought exceeded the available volume, an auction was held on Tuesday, 28 October, through the Southern Rural Water Exchange. 

Auction results will be available soon.

FAQs

  • Could anyone express their interest in the water allocations?

    Farmers interested in purchasing an allocation needed to provide evidence they could access the water via a property they own, or a property they have permission to use. They did not need to have an existing licence to express their interest in this water. 

  • How much water could they get?

    Farmers could express interest in as much water as they liked. However, they needed to demonstrate that they could use the water. Before Southern Rural Water can issue licences, the relevant assessments, including referral to agencies such as the West Gippsland Management Authority, are required to ensure the use is sustainable. 

  • Where was the water available from?

    Downstream of Blue Rock Dam on the Latrobe River. 

  • Are there any limitations for those who were successful?

    Before licences are issued, all those who were successful need to be assessed in line with the requirements of the Water Act 1989 to ensure their intended water use is sustainable. 

  • Were there any further requirements?

    Those who were successful need to meet relevant licencing requirements under the Water Act 1989. This may include other statutory requirements, depending on the intended use, including the provision of Irrigation Development Plans.