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Review of Costs to Manage the Environmental Water Reserve

March 20, 2017

Client: Department of Sustainability and Environment

The cost of purchasing or creating environmental water entitlements is significant, and has been the focus of much attention. One aspect of the management of environmental entitlements that has received only limited attention is the ongoing costs associated with management and delivery of environmental water allocations.

This project, undertaken for DSE, identified the agencies participating in the management and delivery of environmental water supplies in Victoria, and the activities currently being undertaken by each agency. A detailed questionnaire was developed to collect data from the eighteen different organisations involved across Victoria. The data collected was reviewed, validated and consolidated into a database to enable detailed analysis.

The level of current and anticipated future cost associated with these environmental water delivery activities was established. Analysis was also undertaken on the level of confidence in the cost estimates, the funding sources for these costs, and the potential impacts that extremes of climate (wet or dry) may have on future costs.

In addition, the report identified the key drivers of future activity and potential gaps in the current or future management of environmental water supplies and how these may be remedied. The findings of the study and the data base tool developed will be used to help inform the establishment of the Victorian Environmental Water Holder and improve the future management of environmental water delivery.

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