Southern Rural Water is seeking expressions of interest from farmers about additional water allocations from the Latrobe River.
Sixteen gigalitres (GL) of water previously set aside for power generation has been reallocated equally to supply agriculture, Traditional Owners and the environment.
This means 5.3 GL will be available to support farmers with their operations, plans for expansion or drought-proofing.
Managing Director Cameron FitzGerald said Southern Rural Water recognised the importance of the reallocation and encouraged farmers to consider their long-term water needs and express their genuine interest.
"Whether they're looking to improve water security, expand operations or even establishing a new enterprise in the region, we're keen to hear from them.
"This additional water will deliver community-wide benefits, through supporting agricultural production, promoting economic resilience and creating more local jobs."
The allocation will improve the region in different ways.
As well as local farming community benefits, the Gunaikurnai Land and Waters Corporation, and the Victorian Environmental Water Holder, each received 5.3 GL to support, respectively, self-determined cultural values and the environmental needs of the river system.
The water was made available from entitlement known as the Latrobe 3-4 Bench Bulk Water Entitlement. This was created in 1996 for future use in coal-fired power generation. However, following closure plans for the Latrobe Valley mines, a decision to reallocate 16 GL of the 25 GL water entitlement was made through the Central and Gippsland Region Sustainable Water Strategy.
Expressions of interest can be made by completing a form that can be found on the SRW website and returning it by July 30.
Farmers will need to provide evidence they can access the water via a property they own, or permission to use.
Farmers may express interest in as much water as they like but must be able to demonstrate they can use the water.