Crown ownership and private rights. Section 7 vests all water in the Crown. Section 8 carves out private rights, most importantly the right to take water free of charge for domestic and stock use from a waterway or bore to which a person has access by reason of owning or occupying adjacent land, or accessing via a public road or reserve. Domestic and stock use is defined in section 3 and includes household purposes, watering animals, watering stock, fire prevention watering up to 1.2 hectares, and irrigation of a kitchen garden, but excludes commercial uses such as dairies or feedlots.
Environmental water reserve. Section 4A establishes the environmental water reserve, comprising water set aside for the environment through environmental entitlements, conditions on bulk entitlements, management plans and other legal instruments. Section 4B sets the environmental water reserve objective: to maintain the reserve so as to preserve the environmental values and health of water ecosystems, including biodiversity, ecological functioning and water quality. Section 7(4) requires that any new water right, licence or approval must take into account the need to maintain the environmental water reserve.
Declared water systems and zones. The Governor in Council may declare water systems under section 6A and declare zones within them under section 6B. The Minister may declare rationing areas within water systems under section 6C, which triggers provisions about places, rates and times of take under Part 4AA.
Bulk entitlements. Under Part 4, Division 1, the Minister may grant bulk entitlements to water corporations, generation companies, and specified Ministers, authorising the taking of specified volumes or shares of water from a waterway, groundwater system or another authority's works. The application process (sections 36 to 42) involves public notice, panel consideration, and assessment against the matters listed in section 40, including existing water availability, adverse effects on the environmental water reserve, and conservation policy.
Environmental entitlements. Division 1A of Part 4 allows the Minister to grant environmental entitlements to the Victorian Environmental Water Holder, securing water for environmental purposes that forms part of the environmental water reserve.
Water shares. Part 3A establishes the water share system as the primary mechanism for private water entitlements in declared water systems. A water share (section 3 definition) is a right to a share of the water allocated in a declared water system. The Act distinguishes the water share (the perpetual right) from the water allocation (the actual volume of water allocated to the share in any given season by way of seasonal determination under Part 4AB). Water allocations can be assigned (section 33U, section 33V) or subject to standing assignments (section 33TA). Water shares can be transferred (section 33S) or the subject of limited term transfers (section 33T). These dealings are recorded in the Victorian water register.
Victorian water register. Part 5A establishes the water register as the official record of water shares, water allocations, dealings, and associated instruments. A statutory Registrar operates the register. Schedules 12A and 12B deal with recording mortgages and electronic transactions in the register respectively.
Water corporations. Part 6 establishes the framework for creating, restructuring and governing water corporations. Melbourne Water Corporation is specifically identified in section 3 and Part 6. Metropolitan water corporations and non-metropolitan water corporations are defined with different governance provisions. Boards of directors are established under Division 3 of Part 6.
Section 51 licences. Outside the declared water system framework, the taking of water from waterways and bores for purposes other than domestic and stock use requires a licence under section 51.