News

Information for Customers – Broken Water Acquisition

18 September 2025

Broken Reconfiguration Project – Water Share Acquisition Policy and Process

The Resilient Water Program has written to all water share holders in the Broken System with an offer to purchase water shares.

What is the offer?

The Resilient Water Program is willing to offer the following payments for Broken water shares:

  • $3,510 for every 1ML of HRWS (plus a 15% premium if agreed before 15 December 2025); and
  • $325 for every 1ML of LRWS (plus a 15% premium if agreed before 15 December 2025).

Why? What is the Resilient Water Program?

The Resilient Water Program, a division of GMW, is developing a business case for the Broken Reconfiguration Project. This follows the completion of the Broken Reconfiguration Feasibility Study (further information is available at https://www.water.vic.gov.au/for-agriculture-and-industry/irrigation/broken-reconfiguration-feasibility-study). The Broken Reconfiguration Feasibility Study identified a preferred option for works within the Broken System, which includes the recovery of water through the voluntary purchase of water entitlements.

We need to know how much water people are willing to sell. To confirm this, we have asked entitlement holders to enter into written contracts confirming their intentions.

Why do I need to sign a contract?

The contract locks in your commitment to sell water shares. Without this commitment, the Resilient Water Program cannot advise Goulburn Murray Water to seek further funding to advance the capital works component of the Broken Reconfiguration Project.

What do I need to sign?

All owners of a water share to be transferred will need to sign a contract of sale as well as a series of standard forms required to facilitate water share transfers. Please contact our engagement team and we will explain what is required.

When will I get paid? Can I have longer to decide?

Payment depends on capital funding being confirmed for the next phase of the Broken Reconfiguration Project. By signing the agreement, you will allow 12 months for funding arrangements to be confirmed.

We appreciate the uncertainty associated with your early commitment. On that basis, we are offering customers a 15% premium on any payment should you sign a contract with us before the end of 15 December 2025. We may grant you an extended period (up to an additional 4 weeks) if reasonably required and requested prior to the beginning of December 2025.

What happens after I sign the contract? Can I use my water?

You will continue to own your water until and unless the contract comes into operation. If this does not happen within 12 months of you signing, there will no longer be any agreement between you and GMW to facilitate the transfer of your water.

Until the water shares are transferred (which will not happen before July 2026), you will be able to continue to enjoy all the benefits of ownership including being able to use or trade any allocation issued against your water shares.

Will the price be the same for everyone?

In developing this proposal to acquire water shares – which is critical to the development of the business case – the Resilient Water Program has adopted the following position:

  • all customers in the Broken System will be offered the opportunity to sell water.
  • the payment to be offered will be the same for all customers (whether or not water shares are associated with land).
  • the water share acquisition payment will not include loading for any other matter – it will only be referable to the value of the water share plus any incentive for early agreement.

Will GST be payable on the transfer?

No. GST is not payable on water share transfers.

Is there anything else I might be entitled to?

Yes. Depending on where and how your property is serviced, you may be entitled to further payments as part of the proposed scheme of works.

If you have any queries, please contact our engagement team.

Please note that your decision to sell water shares may impact the level of service you would be offered in a future scenario. If you have any queries, please contact us as soon as possible.

How did you come up with the price?

Although evidence of market trades and prevailing value of water shares in the Broken system is quite limited, we believe the offer made available to customers is likely above the prevailing market price.

In formulating the offer, we have taken into consideration the amount of funding made available by the Commonwealth for the overall project and the amounts previously paid to customers as part of the decommissioning of Lake Mokoan.

In summary, the price offered:

  • acknowledges the intention to reduce consumptive use within a system with low reliability and expected continued low allocations;
  • is consistent with the numbers adopted in the Feasibility Study; and
  • extends part of the benefit of the overall project to all customer regardless of location in the Broken System.

Is the price negotiable?

No. The price will be the same for all customers. If you have any concerns, the Resilient Water Program will add a specific commitment in our contract with you confirming that the price paid will not be exceeded in any other dealing as part of the deliver of this project.

Do I have to sell my water shares?

No. The arrangement proposed is voluntary.

Although a significant amount of water purchase is required to advance the preferred way forward in the Broken System, it is up to individual water share holders to determine whether or not they are willing to sell all or part of their water shares.