Southern Rural Water recently sought expressions of interest from Latrobe Valley farmers about additional water allocations from Blue Rock Dam.
Victorian Minister for Water, Gayle Tierney, recently announced 16 gigalitres (GL) of water previously set aside for power generation will 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 means 5.3 GL will be available to support operations, expansion or drought-proofing for irrigators in the Latrobe region.
The allocation will open up more water for production, providing opportunities for innovation, expansion or future-proofing of operations. This will lead to economic improvements and the creation of more employment.
How many expressions of interest have we received?
The expressions of interest period closed on 30 July, 2025. In total, 45 eligible expressions were received, with volumes ranging from 40 megalitres (ML) to 1,800 ML. Although, most were between 100 ML to 500 ML.
As the volume of water sought has exceeded the available 5.3 GL, the decision has been made to hold an auction.
While we usually set a reserve based on historical value and expenses, an auction allows for the market to determine the final price. We will also sell in various lot sizes, which helps to cater for those who may only want small volumes of water and supports equity.
When will the auction be held?
A final date has not yet been set, however, we are working to ensure an auction is completed by December 2025.
How will the auction be held?
The auction will take place through an online platform which is hosted by Water Partners. The platform is similar to auction websites such as eBay. The auction will include a number of ‘lots’ of varying volumes, which are available to bid on.
More information will be made available once an auction date is set.
FAQs
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Can anyone express their interest in the planned water allocations?
Farmers interested in purchasing an allocation must provide evidence they can access the water via a property they own, or a property they have permission to use. You do not need to have an existing licence to express your interest in this water.
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I didn’t submit an expression of interest, can I participate in the auction?
If you did not express an interest, Southern Rural water must determine your eligibility before you are able to participate in the auction. Once a final auction date is set, it is unlikely that we will be able to undertake the necessary checks so please contact us as soon as possible at srw@srw.com.au
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How much water can I get?
You may express interest in as much water as you like. However, you must be able to demonstrate that you can use the water. Before Southern Rural water can issue licences, the relevant assessments, including referral to agencies such as the West Gippsland Catchment Management Authority, are still required to ensure the use is sustainable.
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Where is the water available from?
Downstream of Blue Rock Dam on the Latrobe River.
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Are there any limitations for those who are successful?
Before licences are issued, all those who are successful will be assessed in line with the requirements of The Water Act 1989 to ensure their intended water use is sustainable.
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Are there any further requirements?
Those who are successful must meet relevant licencing requirements under the Water Act 1989. Also, this may include other statutory requirements, depending on the intended use, including the provision of Irrigation Development Plans.