We sold 4.37 gigalitres of permanent water entitlement to farmers within the Latrobe River system on Tuesday, 28 October 2025.
This water was part of the 16 gigalitres of water previously set aside for power generation that was reallocated equally to agriculture, Traditional Owners and the environment by Minister for Water, Gayle Tierney MP.
Farmers along the Latrobe had been advocating for more water to support their operations, drought-proofing plans and boost the local economy for some time and it was pleasing to be able to offer them this water.
We ran an expression of interest process between June and July to understand demand and eligibility for additional water among Latrobe Valley irrigators.
We got 42 eligible expressions of interest. As the volume of water sought exceeded the available volume, we held an auction on Tuesday, 28 October, through the Southern Rural Water Exchange.
A reserve price was set based on historical value and expenses, with the market deciding the price thereafter through the auction.
A total volume of 4.37 gigalitres was offered in 25 lots, ranging in volume from 35 megalitres to 500 megalitres.
All lots reached their reserve and were sold, with winning bids ranging from $1,560 to $3,070 per megalitre. The average price was S1,967 per megalitre.
After the auction, a previously sold lot of water became available and eligible bidders were informed directly. This water was offered to eligible bidders at a shelf price of $3070, the highest winning bid price during the auction. This is in line with Southern Rural Water’s policy.
This water was made available for purchase on Wednesday, 26 November on the Southern Rural Water Exchange online trading platform permanent trade room in increments of 25 megalitres at a shelf price of $3070/ML (the highest winning bid price through the auction). This water was also available to other parties not directly involved in the auction, with all eligibility criteria remaining.
Southern Rural Water will issue the water sold as Section 51 Take and Use Licences, with relevant section 67 licences to construct and operate works that will detail the maximum annual volume, the rate of extraction, and any seasonal restrictions appliable to the licence.
Successful bidders must meet relevant licencing requirements under the Water Act 1989, including completing section 40 assessments before the relevant licences are granted.
We will work with each successful bidder to provide advice on the information and processes needed to support the assessment for the volume of water they purchased at auction.
Once successful bidders meet the relevant licensing requirements, we will grant them a Section 51 Take and Use licence and they can place an order with us to access their water.