July 14, 2025
Have your say on applications to amend existing water entitlements and to grant new ones for mine rehabilitation in the Latrobe Valley river system.
Coal companies have used water from the Latrobe River system to power Victoria for more than a century, often without paying for the water they’re using. There are three mines in the Latrobe Valley at Loy Yang, Yallourn and the closed Hazelwood.
As the coal-mine power stations close, mine licensees are required to rehabilitate the mines to be safe and stable for the long term and have said they may need water for the rehabilitation process.
AGL has applied for a new bulk water entitlement and the Victorian Government is inviting public submissions on AGL’s application.
Coal companies (like AGL at Loy Yang) want to access water from the Latrobe River to fill their open-cut coal pits as part of the mine rehabilitation. The Victorian Government is currently consulting with the public on:
- Whether mine operators should be charged for this water
- What the price should be
- Where any revenue should go
It’s important that the community has their say as part of the consultation as this will set precedents for future applications and the management of the Latrobe River system as a whole.
This is part of the broader Latrobe Valley Regional Rehabilitation Strategy (LVRRS).
Environment Victoria
Environment Victoria have published a blog post that provides information on the issue, what is happening with the water entitlements and why this consultation matters. They also have a submission guide that you can use to assist you in preparing your submission.
About the public consultation via Engage Victoria
In Victoria, entitlements provide access to water under the Water Act 1989 (Vic). One type is a bulk entitlement. This provides a legal right to take and use water, typically a large amount.
Closure dates for Latrobe Valley coal-fired power stations have been announced. For example, power generators have announced that the Loy Yang A power station will close in 2035 and Loy Yang B power station will close in 2047. The coal mines that supply power stations are also expected to close.
Mine licensees are required to rehabilitate the mines to be safe and stable for the long term. Mine licensees have said they may need water for rehabilitation, but this is yet to be confirmed and approved.
Power generators currently have access to water to run their power stations, but the entitlements that provide this water do not allow this water to be used for mine rehabilitation.
Mine licensees who want water for mine rehabilitation can apply to the Minister for Water, via a process outlined in Victoria’s water legislation.
Any use of water for mine rehabilitation will be subject to other approval requirements (see the Latrobe Valley Regional Rehabilitation Strategy for more details) so if the Minister approves these applications, it doesn’t mean that water-based mine rehabilitation will proceed.
For example, Latrobe Valley mine licensees must prepare and submit their Declared Mine Rehabilitation Plans by October 2025. They may also be required to prepare an Environment Effects Statement (EES) in accordance with the Environment Effects Act 1978 (Vic).
Have your say via Engage Victoria. Consultation closes 15 August 2025
