The Gippsland region spans the area south of the Great Dividing Range in Victoria from the Strzelecki Ranges and the Latrobe catchment to the NSW border in the east.
The Gippsland region's water and sewerage resources support important industries such as electricity generation, oil and gas production, dairying, fisheries, tourism, horticulture and forestry plantations. Bulk water provider Southern Rural Water, along with three regional urban water corporations - South Gippsland Water, Gippsland Water (Central) and East Gippsland Water - supply water to the Western region's cities and towns. The CMAs are East Gippsland and West Gippsland.
Currently, about 92 per cent of the total 2,181 GL of water extracted for towns, industry and agriculture in Gippsland is sourced from waterways, with the rest drawn from groundwater and a very small proportion drawn from alternative sources such as stormwater and recycled wastewater. Around 72 per cent has been reserved for environmental use, with the remainder shared between irrigation, urban and industry uses.351 There is uncertainty over future water availability due to climate variability and drought. Other pressures on water availability include increased water demands from towns, agriculture and industry, and activities that intercept water before it reaches waterways and aquifers. If the 1997-2009 droughts were repeated, then the streamflow would be reduced to about 50 per cent in most basins.

___________________________________________________________________________________________________
351. Victorian Department of Sustainability and Environment (2011b)