Coal has left a huge mess. We can’t let our rivers pay for it.

By Josie Hess Digital Content and Mobilisation Lead

Navigation: Learn about the issue | RSVP to the webinar | Follow the Submission Guide

What’s going on with the water entitlements?

Known as Durt’Yowan to the Gunaikurnai people, the Latrobe River flows from the Victorian Alps through Gippsland into the internationally protected Gippsland Lakes. For thousands of years, it has sustained communities, culture and ecosystems.

But now, even as we’re seeing the catastrophic impacts of water constraints on creatures like the Burrunan dolphins, mining companies are planning to take more than four Sydney Harbours’ worth of water from this already-stressed river system.

Cleaning up Latrobe Valley’s three coal mines isn’t simple, or easy. The communities who live closest to the mines know the challenges – like making sure toxic coal ash doesn’t contaminate groundwater and making the mine pits safe and stable. It’s really important that however these issues are addressed, that the costs of clean up aren’t put on local community and our rivers – and we have an opportunity now to put that right.

Let’s break down what is happening and what you can do about it:

Help make sure our rivers aren’t being sold out

In a huge win for local advocates, the Victorian Government is consulting the public on whether and how mine operators (like AGL at Loy Yang) should pay for access to water from the Latrobe River system to fill their coal pits as part of mine rehabilitation. This is part of the broader Latrobe Valley Regional Rehabilitation Strategy (LVRRS).

💧 Webinar Details

Right now, the public can make submissions to challenge AGL’s application, especially on the economic value of the water they’re seeking.

We’re running a webinar to help you write and lodge your submission:

✅ Learn what’s at stake

✅ Get step-by-step guidance

✅ Add your voice to the growing call for water justice

Date: 14th July
Time: 6.30–7.30pm
Location: Zoom (link will be emailed to you after you RSVP

💧 RSVP to attend

Why this matters

A report commissioned by the government found that water should be priced to reflect Opportunity cost = what society forgoes by giving water to mine rehab instead of other uses (eg. restoring nature, supporting agriculture, water for Traditional Owners). Setting the price of water too low undervalues water and burdens the public.

Unrealistic pricing also distorts decision-making about mine cleanup. Last year, a study into alternative water sources (like recycled or desalinated water) ruled them out due to cost, but these comparisons were made using a very low price for river water. If the price of water is raised to align more closely with it’s true value, it might make other options more viable, leaving more water for our rivers.

And if mine operators still choose to take river water, but are required to pay a fairer price, this money could be directed to programs that help protect and restore our rivers like purchasing areas of floodplain, restoring wetlands, recreating meanders, and installing fish ladders.

Submission Guide

Everything you need to write your submission

What’s happening?

In Victoria, bulk water entitlements (BWE) provide legal rights to take and use water under the Water Act 1989 (Vic). These typically involve large amounts of water and are essential for major industrial operations.

As coal fired power stations close, mine licensees are legally required to rehabilitate these sites to be safe and stable for the long term. While they may need water for this rehabilitation, this hasn’t been confirmed or approved yet.

Current water entitlements allow power generators to access water for operations to generate electricity, but these entitlements don’t permit using this water for mine rehabilitation. Therefore, mine licensees need new or amended water entitlements specifically for rehabilitation purposes. These new licences only apply to AGL’s Loy Yang A and Energy Australia Yallourn as Engie’s Hazelwood already have private water agreements in place that are confidential.

Historically the costs of these bulk water entitlements, which have been taken from the Latrobe River system, have included only infrastructure costs (management, storage and supply of water) with most people unaware miners pay zero dollars for the river water taken.

The decisions made now will set important precedents for future applications and how the overall management of the Latrobe River system can function to support a healthy river system into the future

Making Your Submission

Make your submission through
Engage Victoria.
Go to ‘Participate’,
Then choose ‘Application A’ form.Your submission can be a written submission or online survey responses.
Submissions close 22nd July

Tips for Impact

Be specific, reference particular sections of applications or legislation
Use evidence from reports, or expert opinions where possible
Don’t try to cover every issue – focus on what matters most to you
Make it personal – Explain how decisions will affect you, your family, or your community

Environmental Concerns

Latrobe River (Durt’Yowan) is already a highly modified and flow-stressed river from existing water entitlement allocations. It currently has an environmental water deficit of 129 gigalitres per year and continued water extraction under future dry climate conditions will lead to ongoing terminal decline in river health, environmental values and biodiversity loss.
Water allocation for mine rehabilitation means delaying water recovery targets for environmental flows and cultural water for Traditional Owners, Gunaikurnai Land and Waters Aboriginal Corporation.
Reduced flows down the Latrobe means increased salinity and less water flushing for the internationally listed Ramsar Gippsland Lakes, Lake Wellington and lower Latrobe wetlands. This presents risks to EPBC-listed species including Australian Grayling, frogs, Australasian Bittern and the critically endangered Burrunan dolphin.
Climate change threatens to reduce flows further and increase water temperatures, which will also increase negative biological processes creating potential health complications for those using our waterways as a food source. Flows are critical to flush out the river at mixing zones where industry discharge pollutants into Latrobe River. Additionally, higher temperatures could negatively impact how discharged pollutants interact with ecosystems in a greater stressed Latrobe River, and drive high algal growth, particularly in warmer months.

Water costings and revenue

Historically, these profitable coal companies have paid only infrastructure costs, while taking enormous volumes of water from the Latrobe River system, contributing to its current terminal decline. These new bulk water entitlements represent an opportunity to charge mine licensees for the water recognising the capital value of water that, as yet, does not include environmental (nutrient filtration, habitat provision, carbon sequestration, regional tourism) and cultural values. Pricing frameworks for our shared natural resource should be transparent, including how raised revenue is managed.
The Latrobe River system has supported coal-fired power generation for decades and deserves equitable compensation. Revenue should be directed towards river restoration, to enable the rehabilitation of the river to happen in parallel with the mine land. It should not be used as a revenue raiser for state treasury, instead water payments should fund river health improvement programs, such as those activities outlined by West Gippsland Catchment Management Authority as part of the Latrobe Valley Vision (Central and Gippsland Sustainable Water Strategy) to recreate meanders to slow flows, install fish ladders, riparian revegetation and wetland restoration.

Cumulative Impact Assessment

The scale of water needed is enormous which covers both surface and groundwater – AGL alone is seeking over 1,000 gigalitres (equivalent to more than 2 Sydney Harbours) for Loy Yang A mine rehabilitation. Combined with other planned mine rehabilitations; Yallourn: At least 630GL; Hazelwood: 637GL; Loy Yang A: 1,074GL; that is a total of over 2,341GL – or more than more than 4.5 Sydney Harbours.
Critical information has been left out of risk assessments with Yallourn confirming the collapse of the Morwell River Diversion (MRD) levee through the Yallourn coal pit is foreseeable. When this occurs, a significant volume of variable flows will be removed from the Latrobe River, but this has not been adequately considered in current applications for surface flow.
A cumulative approach must be taken to assess these applications, considering the impacts from reduced Morwell River flows, which could contribute up to 30% of the Latrobe flows in a drying climate.

Alternate Water for Rehabilitation

Alternate water sources, such as recycled and desalinated water had been ruled out as financially unfeasible in favour of the cheaper river water option. This cost comparison did not adequately reflect the value of water from our natural sources. A full cost comparison must be done on the true market value of water, and assessments on cost comparisons must be made available to the public.

Your submission is an important part of the democratic process. The Minister is legally required to consider all submissions when making decisions about these water entitlements.

These decisions will affect water availability, environmental health and community wellbeing for decades to come.

Make your voice heard – the future of the Latrobe River system, the Gippsland Lakes and surrounding communities depends on it.

Submit your concerns here