Southwest Victoria is a vital agricultural region, producing 22 per cent 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 over the last year, and there is growing community interest in these dry conditions. Southern Rural Water spoke with farmers at a community meeting in Hamilton about groundwater and how the utility is here to help them access this valuable resource.
Southwest Victoria is well-known for reliable rainfall, but the recent dry conditions are surprising farmers. Some of them 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.
Southern Rural Water regulates and manages access to groundwater in southwest 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, the 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 southwest, 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. More than 80 gigalitres of licenced entitlement are 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 can carry up to 30 per cent of any unused annual licence volume into the next year. Annual metered use is typically between 30 and 45 per cent of entitlement, and in the 2023-24 season, this equates to 31GL.
The water year runs from 1 July to 30 June each year. There are 809 groundwater licences in the South West Limestone, with a total licensed volume of 80,503ML. Of those entitlement holders, 95 per cent did not use their full allocation in 2023-24 and had full access to 30 per cent carryover. Of the remaining five per cent, many have access to some carryover. What does all this mean? This means that groundwater is available, and there are significant trade opportunities.
Southwest Victoria has less trading activity than other Victorian regions. SRW recently completed research to understand the reasons for this and how it can encourage and support water trade in the region.
Four key recommendations emerged from the study: reduce complexity, increase customer service support, build awareness of resource availability and support trade transparency. SRW is already acting on these recommendations. It are putting all southwest Victoria groundwater and trade applications to the top of the list and will work with applicants on what they need to provide SRW and how their application is progressing.
SRW has briefed its 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.
It is investigating how SRW can further support customers by streamlining itse online information, application forms and processes to reduce complexity and improve the application experience for its customers.
SRW aim to balance the productive use of groundwater with the protection of high-value environmental values and the rights of domestic and stock users.
Visit the groundwater management information page for more information on accessing groundwater in southern Victoria.
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