Water is a scarce resource, and its supply is uncertain. Legislation in Victoria is based on the principle that water, like air, is a community resource not open to private ownership. Governments try to protect water resources against overuse and degradation and to ensure that private users do not act against public interest. In Victoria statutory rights have long since replaced common law rights to water.

The Water Act 1989 controls the allocation and use of water harvested from waterways and groundwater in Victoria. Water corporations are issued with 'bulk entitlements' of water, which they distribute and sell for irrigation and town supplies. Landowners and non-landowners can now buy and sell their individual water share on the open market, although there is a 10% limitation in respect to the volume of water share held by non-landowners in any water distribution system.

Under the Act, licences can be issued to individuals or companies to take and use surface water in non regulated streams or ground water. These licences can also be traded on the market. New surface water irrigation licences on non regulated streams allow you to divert water only during winter.

The Water Act formally recognises that the environment is a user of water. For example, each year a water entitlement is set aside for environmental purposes on the Murray system for the Kerang Lakes. If this entitlement is not required it can be sold to irrigators. The Victorian Government has provided for a greater volume of water to be made available for the environment.

To view further information on this topic go to the Department of Primary Industries website - www.dpi.vic.gov.au.