Chapter 3 - Evolution of Water Entitlements and Markets in Victoria, Australia

Abstract

This chapter covers the 30-year journey in Victoria to develop what is now a modern water planning and management system. The process commenced in the 1980s with the conversion of poorly specified water rights into legally binding volumetric water entitlements. The new entitlement regime provided the foundation stone for major institutional reform of the Victorian water sector based on devolving water and waste service delivery responsibilities to statutory water authorities. This was followed by the establishment of an effective water market, a market proved particularly effective in managing the effects of the Millennium drought (1999–2009). The development of the new entitlement regime and water markets changed the roles and responsibilities for water resource planning such that the primary responsibility for planning now rests with entitlement holders (irrigators, rural or urban water corporations, and environmental water holders). This reform process was underpinned by ongoing community trust and support, a vital component in achieving the sustained political leadership that has spanned many election cycles and many Ministers.