Water Management Partnership Agreement—the Commonwealth of Australia and the State of Victoria

​Publication details

Commonwealth of Australia, 2010

This agreement exists under Part Four of the Intergovernmental Agreement on Murray-Darling Basin Reform (IGA). The Basin states (New South Wales, Queensland, South Australia, Victoria and the ACT) have signed similar agreements, which will allow them to undertake priority projects contributing to improved water use efficiency in the Murray-Darling Basin. With the Water Act 2007, the IGA supports the objectives of the National Water Initiative to increase the productivity and efficiency of Australia's water use.

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Further information

Northern Victoria Irrigation Renewal Project Stage 2

The Australian Government commitment to fund Stage 2 of the Northern Victoria Irrigation Renewal Project (NVIRP 2) as part of the Murray Darling Reform Intergovernmental Agreement 2008. This agreement was subject to the provision of a business case from Victoria and a Commonwealth due diligence process.

Following due diligence, the Australian Government approved funding of $953 million for the project on 6 November 2010, with water savings from the project to be shared between the environment and irrigators. The Commonwealth is funding 90% of the project and Victorian Government (10%).

Heads of Agreement

In October 2011 a Heads of Agreement was signed between the Commonwealth and Victoria giving effect to a new Victorian Food-Bowl Modernisation Project (VFMP). The new project includes changes proposed by Victoria to the original NVIRP 2 project. The VFMP will deliver 214 GL of water savings to the Commonwealth for the environment.
Key features of Heads of Agreement include:

  • A revised project structure for the $1.06 billion NVIRP Stage 2 project to streamline delivery of the project, underpinned by an outcomes-based delivery framework
  • Australian Government funding of $43.7 million for a project (NVIRP Stage 2 - On-Farm Project) re-scoped under the Water Management Partnership Agreement supporting on-farm irrigation modernisation integrated with the roll-out of NVIRP2. The Commonwealth is funding (90%) of the project and Victorian irrigators 10% cash and in-kind)
  • A sale offer of 102 gigalitres - the second half of savings from NVIRP2 - by the Victorian Government to the Commonwealth, and acceptance of this offer
  • Victoria granting trade approval for approximately 88 gigalitres of water trades from previous Commonwealth tenders blocked by the Victorian four per cent limit on out of district trade
  • Victoria continuing to work cooperatively with the Commonwealth Environmental Water Holder to facilitate arrangements for environmental water delivery
DocumentPagesFile size
An agreement supporting the Victorian Food-Bowl Modernisation Project PDF PDF Icon172.3 MB
An agreement supporting the Victorian Food-Bowl Modernisation Project DOC Word Icon174.1 MB

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The new package was announced on 18 October 2011 by the Australian Government Minister for the Environment, and the Victorian Minister for Water.

Project schedules

Project schedules form part of the Water Management Partnership Agreement and formalise the specific funding arrangements for each of the agreed State Priority Projects. Where funding was provided to states for a State Priority Project prior to the execution of the Water Management Partnership Agreement, funding agreements were developed.

DocumentPagesFile size
Northern Victorian Irrigation Renewal Stage 2 Project PDF PDF Icon305.7 MB
Northern Victorian Irrigation Renewal Stage 2 Project DOCX Word Icon3080 KB
Northern Victorian Irrigation Renewal Stage 2-On Farm Project PDF PDF Icon255.8 MB
Northern Victorian Irrigation Renewal Stage 2-On Farm Project DOCX Word Icon25449 KB
Sunraysia Modernisation Project Schedule PDF PDF Icon21667 KB
Sunraysia Modernisation Project Schedule DOCX Word Icon21440 KB
Victorian Farm Modernisation Project Project schedule PDF PDF Icon27531 KB
Victorian Farm Modernisation Project Project schedule DOCX Word Icon27504 KB

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