South west Victoria is a vital agricultural region, producing 22 percent of Australia’s milk, and significant amounts of vegetables, prime lamb, and high-quality beef. During the past 12-months, several areas in the region have had the lowest rainfall on record and there is growing community interest about these dry conditions. We spoke with farmers at a community meeting in Hamilton about groundwater and how we’re here to help them access this valuable resource.
South west Victoria is well known for reliable rainfall, and the recent dry conditions are taking farmers by surprise, some of whom rely on catchment runoff to fill their on-farm dams. Groundwater is also a valuable resource and despite the recent dry conditions, groundwater levels across the region are relatively healthy in the major aquifers like the South West Limestone.
We regulate and manage access to groundwater in south west Victoria in line with the South West Limestone Groundwater Area Management Plan and the Water Act 1989. A take and use licence is required to take water from a bore for dairies, feedlots, irrigation or other commercial activities. A take and use licence is not needed to use water from a bore on your property for domestic and stock purposes.
Encouragingly, our 2023-24 South West Limestone annual groundwater condition summary shows groundwater levels are around the long-term average level except for a few bores in the far south west where levels are below average. Groundwater use in the South West Limestone aquifer is capped to ensure the resource is carefully managed.
The Minister for Water sets the cap for groundwater entitlement, and Southern Rural Water is delegated to assess and determine licence applications, including trades. There is more than 80 gigalitres of licenced entitlement in the South West Limestone Groundwater Management Area. Right now, no significant additional allocation is proposed in this area. Trade is the main way new users gain access to groundwater.
Licence holders in the South West Limestone Groundwater Management Area are allowed to carryover up to 30 percent of any unused annual licence volume into the next year. Annual metered use is typically between 30 to 45 percent of entitlement and in the 2023-24 season this equates to 31 gigalitres.
The water year runs from 1 July to 30 June each year. There are a total of 809 groundwater licences in the South West Limestone with a total licensed volume of 80,503 megalitres. From those entitlement holders, 95 percent did not use their full allocation in 2023-24 and have full access to 30 percent carry over. Of the remaining five percent, many have access to some carryover. What does all this mean we hear you say? It means there is groundwater available and significant opportunities to trade.
Compared to other Victorian regions, there is less trading activity in south west Victoria. We have recently completed research to understand the reasons for this and how we can encourage and support water trade in the region.
Four key recommendations emerged from the study for us: reduce complexity, increase customer service support, build awareness on resource availability and supporting trade transparency. We are already acting on these recommendations.
We are putting all south west Victoria groundwater and trade applications to the top of the list, and will work with applicants on what they need to provide us and how their application is progressing.
We have briefed our field, customer service and applications teams to ensure they are informed on current and future predicted conditions and have the skills and knowledge to help customers understand and access groundwater and trading opportunities.
We are investigating how we can further support customers by streamlining our online information, application forms and processes to reduce complexity and improve the application experience for our customers.
We aim to balance the productive use of groundwater with the protection of high value environmental values and the rights of domestic and stock users. If you or someone you know is interested in trading water, please reach out to Southern Rural Water and we can help you through the process.
Visit our groundwater management information page for more information on how to access groundwater in southern Victoria.