October 13th, 2026Backing Latrobe Valley And Gippsland
The state government is ensuring every dollar raised from water access for Latrobe Valley mine rehabilitation goes back into local communities.
Treasurer Colin Brooks recently announced all revenue from EnergyAustralia’s water entitlement for the Yallourn coal mine will be invested in the Regional Jobs and Infrastructure Fund.
This follows the state government’s decision to direct all revenue from AGL’s water entitlement into the same fund – backing local jobs, community projects and infrastructure across Gippsland.
EnergyAustralia will pay $230 per megalitre of water accessed each year, with the rate increasing in line with inflation.
Payments will begin once water is used for mine rehabilitation, following the planned closure of Yallourn Power Station in 2028.
The water entitlement will help EnergyAustralia rehabilitate the Yallourn coal mine and leave the site safe and stable for the environment and future generations.
Strict conditions will protect local farmers, existing water users and the environment.
Water access will be heavily restricted in dry years and limited to wetter periods to protect river flows.
The state government has also reduced the amount of water that can be taken from the Latrobe River once power generation ends – protecting water availability for local communities and farmers.
EnergyAustralia must also secure the necessary mine rehabilitation approvals before using water for rehabilitation.
The state government is backing Latrobe Valley’s future by supporting local jobs, protecting water security and ensuring communities benefit from mine rehabilitation.
“Every dollar raised from water access for mine rehabilitation will go straight back into the Latrobe Valley and Gippsland – supporting local jobs, infrastructure and communities,” Treasurer Colin Brooks said.
“We’re making sure Latrobe Valley’s former coal mines are safe and stable, while protecting the water local farmers and communities rely on,” Minister for Water and Minister for Rural and Regional Development Michaela Settle said.
“We’re backing local families and communities by making sure the benefits of mine rehabilitation stay right here in Gippsland and specifically the Latrobe Valley,” Member for Eastern Victoria Harriet Shing said.
