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Latrobe City pushes for fair community benefits, transparent water pricing and long-term investment as Yallourn Mine rehabilitation progresses

Latrobe City Council has urged fair community reinvestment, transparent water pricing and long-term funding certainty as EnergyAustralia seeks water entitlement for Yallourn Mine rehabilitation.

By news@gippsland - 28th August 2026 - Back to News

Latrobe City Council is continuing its advocacy for local communities to share in the benefit of Victoria's energy transition, lodging a submission on Energy Australia's application for a bulk water entitlement to rehabilitate the Yallourn Mine following the eventual closure of Yallourn W Power Station.

Latrobe City Council has submitted its response to EnergyAustralia Yallourn water entitlement application, calling for transparent pricing, fair community reinvestment and responsible long-term water management

Fair transition benefits

The submission builds on Council's previous advocacy regarding AGL's Loy Yang Mine bulk water entitlement application and reinforces the need for transparent water pricing, fair reinvestment of revenue into local communities and careful consideration of long-term water management impacts.

Latrobe City Council Mayor, Councillor Sharon Gibson, said the City was at the centre of Victoria's energy transition and should receive a fair share of the benefits generated through mine rehabilitation activities. "Latrobe City is home to all three of Victoria's declared coal mines and will continue to manage the greatest economic, environmental and social impacts associated with mine and power station closures."

"It is essential that any revenue generated through water access arrangements is reinvested into the communities that are most directly affected by these changes. Once all of Latrobe City's coal-fired power stations close, Council will see a loss in the millions of dollars in rates revenue every year. That funding currently helps pay for things people rely on every day, like local roads, parks, libraries, sporting facilities and community spaces," Cr Gibson said.

Regional funding certainty

Council's submission follows the Victorian Government's decision to return 100 percent of water access revenue from AGL's Loy Yang Mine rehabilitation entitlement to Latrobe Valley and Gippsland communities through the Regional Jobs and Infrastructure Fund. While Council welcomed that commitment, Cr Gibson said greater certainty was needed around how future funding would be distributed.

"The approved Loy Yang entitlement alone is expected to generate around $247 million over the next 30 years. As further mine rehabilitation projects progress, including Yallourn, the value returned to communities could amount to hundreds of millions of dollars over coming decades," she said.

Lake Narracan future

The submission also raises the importance of long-term management of Lake Narracan, recognising its significance to future residential growth, community liveability, recreation opportunities and regional water security. "Lake Narracan is important to our community and its future management needs to be considered in broader mine rehabilitation and water planning decisions," Cr Gibson said.

Council's submission notes that, unlike several other Australian energy transition regions, Latrobe City does not currently receive a dedicated long-term State or Commonwealth transition funding package despite experiencing more greater cumulative impacts of successive coal mine and power station closures than other regions.

Pictures from Engage Victoria website.

Source: www.gippsland.com

Published by: news@gippsland.com

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  The Victorian Labor government is investing $750,000 in Ladder Step Up Latrobe Valley, supporting 120 young people facing barriers to education, training and employment through 2028.
• Baw Baw Shire Council to consider cost of returning to weekly red-bin collections
  Baw Baw Council will investigate the costs and implications of restoring weekly red-bin collections after a 6,139-signature petition highlighted strong community concern over the FOGO changes.
• Cowes Freedom of Entry Parade marks 125 years of Australia's Commonwealth Naval Forces and naval service tradition parade on 7 August 2026
  Bass Coast Shire Council invites the community to Cowes' Freedom of Entry Parade on August 7, celebrating 125 years of Australia's naval heritage with HMAS Cape Woolamai personnel and the Royal Australian Navy Band.
• East Gippsland Shire Council seeks $4M election funding to unlock 600 new homes through Lucknow drainage upgrades
  East Gippsland Council is seeking $4 million for Lucknow drainage upgrades, enabling up to 600 new homes while addressing flooding and supporting sustainable growth.
• East Gippsland Shire Council seeks $4M to upgrade Lakes Entrance drainage, protect communities and unlock 1,500 new housing lots
  East Gippsland Council is seeking $4 million for Lakes Entrance drainage upgrades to reduce flood risk, protect communities and support development of 1,500 housing lots.
• East Gippsland Shire Council calls for election funding to unlock thousands of homes across the shire
  East Gippsland Council is seeking $12 million in Victorian Election funding for infrastructure projects in Paynesville, Lakes Entrance and Lucknow, supporting thousands of new homes.
• Baw Baw book boxes bring free children’s books and reading opportunities to communities across Drouin, Longwarry and Warragul
  Baw Baw Shire Council and Drouin Men’s Shed have installed community book boxes across Drouin, Longwarry and Warragul, offering free children’s books while encouraging literacy, reading and family connections.
• Bass Coast Shire Council urges state government to act on urgent on Western Port Woodlands protection controls before caretaker period
  Bass Coast Shire Council has urged the Victorian Government to introduce interim protections for Western Port Woodlands, citing significant biodiversity values and seeking action before caretaker provisions begin on November 3.