South west Victoria groundwater Expression of Interest

5,000 megalitres is available in the Warrnambool Zone of the Lower Tertiary Aquifer system (this includes the Dilwyn Formation and other deeper aquifers) and 1,400 megalitres in the Paaratte Groundwater Management Area (GMA) – this is within the Dilwyn Formation only.

Drilling depths to the top of the Dilwyn Aquifer vary depending on location. 

The Paaratte GMA targets the confined Dilwyn Formation. Depths are greater than 120m in the east around the Swan Marsh and Irrewillipe areas and deepen moving west with the top of the aquifer over 400m below surface at the coast.

In the Warrnambool Zone, a limited number of deep production bores have been constructed in the Dilwyn Formation across south-west Victoria. Drilling depths are likely to vary between 500m and 1,000m+. The aquifer is generally deeper than 400m below the surface. 
To determine whether your property is within the boundaries and to understand likely drilling depths please contact Southern Rural water on 1300 139 510
 

Expressions of Interest (EOI) close at 4pm on Friday, 2 May 2025.

The EOI form requires you to provide the following information to ensure we can determine eligibility:

• The annual volume of water being sought, and the proposed daily maximum pumping rate.
• A plan for how the water is to be used. This includes an outline of the business proposal or land to be irrigated and timeframe for development.
• An approximate bore location.
   

Landowners within the boundaries of the Warrnambool Zone and the Paaratte Groundwater Management Area that can demonstrate a legitimate use for the water and whose property has access to the available water can take part. Further technical information around the zone boundaries, as well as water depth, quality and yield can be provided upon request. 

Yes. If you own land in both areas and can demonstrate a legitimate use of water in each area you can express an interest in both areas.

Once the expression of interest closes, we will undertake a preliminary assessment to determine the level of interest and the eligibility of the applicants to hold the relevant licences. 

The results will inform the pathway forward which could include a process to apportion the water either via auction, tender or other process.

We expect to have determined our pathway forward by the end of June 2025.
 

This Expression of Interest process is to provide us with information around the likely interest and level of demand for this water. This information can be used to determine if, when and how we apportion any available water. An auction is one possible option, and the timing would be informed by a range of other factors.

If we proceed with a tender process, we could initiate progress sooner. 
 

To access and use water legally in Victoria, you are required to hold two licences to access and use groundwater including a Section 51 take and use licence and a section 67 licence to operate works (in this case a bore).

When you submit an expression of interest, we will do an initial assessment of the potential take and use licence prior to a tender/auction. This will determine the likelihood of being able to secure a Section 51 licence. 

Eligible expression of interest applicants will be invited to take part in an auction/tender and successful bidders will be issued a Section 51 take and use licence. 

Before any water can be taken or used, applicants must also apply for a Section 67 operating licence. This will occur once the bore(s) have been drilled. The Section 67 application process may require information to be provide to Southern Rural Water on bore construction, bore yields and groundwater quality, and the potential impacts of pumping on surrounding bores, and the environment. This application process may require a pumping test, and an irrigation and drainage plan. If the Section 67 licence process is successful then the applicant will be authorised to use the bore.

When assessing your application, we need to consider several things including impacts on current users and nearby waterways, local and government policies, irrigation guidelines (if they apply) and items under section 40 of the Water Act 1989.

All applications will require neighbour notification processes and be referred to stakeholder agencies (e.g. Catchment Management Authorities) for consideration and comment. 

For simple applications, the process may take a few weeks or up to 12 months for more complex ones. 

We cannot guarantee application approval and would strongly advise you talk to us before applying so we can advise you before you commit to the application process. 

This can vary depending on the complexity and magnitude of the application. At a minimum we require a desktop hydrogeological assessment to provide information around the likely impact of the intended water use on surrounding users, and the environment.

Depending on the nature of your application, you may be required to do a pump test to help us better understand impacts on other users, prepare an irrigation drainage plan and possibly secure Environmental Protection Agency waste approvals.

The water resource is located deep beneath the surface. The costs to secure the relevant licences and drill a bore to access this groundwater is likely to be significant.

You will need to use the services of hydrogeological consultants to help prepare application materials. The fees of consultants can vary and will depend on the scope of work required.

The cost to drill a production bore in these deep aquifers could be in the range of $500,000 to $1,000,000 depending on the depth of the bore and the materials used. We advise seeking advice from a driller to get greater certainty on these costs.

We have not determined the pathway forward following this Expression of Interest process. It is possible that we could choose to run an auction process. In this case, the market would determine the value of the water. When purchasing at auction, the sale price covers the cost of the application.

If the water is allocated using a different mechanism, you will be required to pay the application fees. These are set out below:

• Fixed Component (for applications over 400 megalitre) - $4069.52
• Volumetric Component - $24.76 per megalitre

Annual fees will be charged regardless of the mechanise used to allocate water. These are set out below: 

• Fixed Licence Fee $418.90
• Volumetric - $4.60 per megalitre

No. This process is to inform our decision making based on the interest and demand for water. If we move ahead to apportion the water via auction, tender or other process the relevant fees or costs will be applied at that time.