Media Release: Victorian Environmental Water Holder to trade water allocation

The Victorian Environmental Water Holder (VEWH) intends to sell up to 47,000 megalitres (ML) of allocation water, also known as temporary water, from the Murray, Goulburn and Campaspe systems between February and June 2024.

VEWH CEO Dr Sarina Loo said successive years of wetter-than-average conditions with intense rainfall, floods and naturally occurring high flows meant that the remaining planned environmental watering for northern Victoria would be achieved in 2023-24.

“We have assessed environmental and climate conditions and water availability, and this confirms the VEWH requires a low carryover volume in 2024-25 because water available for allocation in that year is expected to be high.

“There is also a risk that water carried over will be lost to spill in 2024-25.

“Victoria’s environmental watering program adjusts to current conditions and seasonal variability,” Dr Loo said.

The VEWH’s assessment considered potential environmental watering actions led by Traditional Owners at trial sites with ecological and cultural benefits. The VEWH and Traditional Owners are working together on several trials to progress self-determination in the environmental watering program.

The VEWH flagged in its 2023-24 water allocation trading strategy that it was likely to sell allocation from spring 2023 onwards. Dr Loo said as a public organisation the VEWH was careful to avoid affecting water market participants, dynamics and pricing.

“The water market will be assessed weekly and the allocation will be made available progressively through selected brokers and online exchanges,” she said.

Revenue from the sale will be used to resource activities and strategic projects that fulfil the VEWH’s existing and new policy obligations.

These include investing in complementary works and measures projects, research and knowledge to improve Victoria’s environmental watering program, and progressing Traditional Owner self-determination where cultural values align with environmental outcomes.

Fast facts

• The Victorian Environmental Water Holder (VEWH) is an independent statutory body established in 2011 under Victoria’s Water Act 1989 as an ‘accountable, independent guardian’ to transparently manage environmental water entitlements.
• The VEWH decides why, where, when and how available water for the environment is used, carried over or traded to support the health of Victoria’s rivers, wetlands and floodplains.
• Under the Water Act it can buy, sell or exchange water to meet environmental needs.
• Water for the environment provides social, recreational and economic benefits. It helps to increase native fish populations, support bird breeding and contribute to healthy Country for Traditional Owners and people who gravitate to healthier waterways for relaxation and wellbeing.
• There is more about the VEWH’s water allocation trading strategy and Trade Revenue Investment Framework at www.vewh.vic.gov.au/watering-program/trading