Extending and using our water grid better

Good water management means modernising our grid, ensuring efficient use and securing more resources.

The Victorian Government is building and upgrading water-related infrastructure to ensure we are making best use of our water grid. This includes:

  • delivering modernisation projects in irrigation districts
  • examining feasibility of further upgrades

Providing more flexibility and support to farmers and communities will help their adaptation. And expand production using less water.

Victorian Infrastructure Plan -  Water Victorian Infrastructure Plan - WaterPDF (1.55 MB) Victorian Infrastructure Plan -  Water Victorian Infrastructure Plan - WaterDOC (952.91 KB)


In the future In the future

Most surface water used in Victoria is for irrigation (around 79%). Many irrigation systems are old and inefficient. Reported water losses are up to 43%.


Projects and reforms

The Victorian Infrastructure Plan includes 8 projects and reforms under this Water priority. These are detailed in the Water sector plan and full edition VIP, available for download together with:

  • Government response - outlines our position and addresses 137 recommendations made by Infrastructure Victoria in its 30-year Infrastructure Strategy
  • Technical report - indicates where projects and reforms meet the plan’s four objectives

Case study

Lance Creek water security project

Water supply to the south Gippsland towns of Korumburra, Poowong, Loch and Nyora is confronting problems. These relate to:

  • increasing food processing demands
  • ageing assets
  • the need for higher water quality

A $30 million Victorian Government investment will significantly improve water security. These towns currently experience water restrictions due to:

  • isolated water storage
  • small storage capacity
  • on-going dry conditions

The project will be delivered by South Gippsland Water at a cost of $43.4 million. This will reduce the likelihood of future water restrictions. While also improving drinking water quality.

The towns will be connected to Victoria’s water grid for the first time. These communities currently rely on water from small, rainfall-dependent local dams. The project will change this by linking towns to the Lance Creek supply system providing access to Melbourne’s water supply system. Industrial and domestic customers will be able to access a resilient and secure water supply.

This project underpins the future of food processing in the region. By providing companies like Burra Foods and GBP Exports with supply security. Respectively these businesses employ 165 and 180 staff in the region. This project means they can further invest with confidence.

The Lance Creek system incorporates existing infrastructure, connecting to Wonthaggi Desalination Plant pipeline. This means Melbourne’s Cardinia Reservoir can direct water to Lance Creek water treatment plant via the pipeline.


The Victorian Infrastructure Plan identifies 2 other priorities within the Water sector. They are:

Building resilience to climate change

Improving the health of waterways and catchments