WATER is not only the key to life but the catalyst in a 50 per cent lift in carrying capacity for Western District farmers Craig and Woody Oliver.

The Olivers, of Dunkeld, have installed a stock watering system covering their entire farm and say it has been money well spent.

    AT A GLANCE
  • Who: Craig and Woody Oliver
  • What: wool, lambs and bulls
  • Why: water boosts carrying capacity by 50 per cent
  • Where: Dunkeld, Victoria

"It was the most expensive part of the whole farm plan development but it's been the key to making the whole grazing system work," Craig said.

The couple run fine-wool Merino sheep, first-cross lambs and Friesian bulls on 930ha of red-gum country. In the past they relied on dams and a creek to water their stock.

Craig said the dams were small and scattered across the property, and the creek was unreliable.

This restricted their carrying capacity to about eight dry sheep equivalents per hectare compared with a potential of 15DSE/ha.

"We had water in some spots, but none in others," Craig said.

The original farm layout included 11 large paddocks averaging 60ha each, which made stock management difficult.

"We wanted smaller paddocks and laneways so we could get more efficient stock movement throughout the farm and better grazing management," Craig said.

The couple developed a plan to subdivide the property into 72 paddocks of 10-20ha all linked by about 10km of laneways.

They also wanted to fence off the creek to reduce erosion and nutrient run-off.

But while dividing up the paddocks was simply a matter of building more fencing, the Olivers soon realised that their greatest expense would be in supplying water to the new subdivisions.

They would need a larger and more reliable water supply and have to install troughs, piping and a pumping system. They also required a larger, and more reliable, water supply.

Craig estimates they spent about $45,000 on the water works over the two years it took to initially set the system up.

The first step was to dig a six-megalitre dam in a good catchment area. It was completed in 2004.

"It took a good 18 months to fill but then we had it when the drought came, which was invaluable," Craig said.

Water is pumped from the dam using a floating Airwell pump, which is powered by an air-compressor located at the house and connected to the pump by an in-ground airline.

A solar-powered battery runs the solenoid in the pump to switch the air on and off.

Two smaller dams, located up to 2.5km from the house, are also connected to the air compressor by airlines.

The pump is portable so it gives Craig and Woody the flexibility to manipulate their water supply.

"During the drought, it let us aggregate all the water into one spot so that we could make better use of what was left," Craig said.

The property is relatively flat so water can be pumped directly to each trough, but Craig prefers to pump to a header tank, particularly in hot weather.

"You're much better having a storage tank to make sure you've always got enough water to meet demand," he said.

Water is delivered to each of the 50 concrete 1200-litre troughs through 15km of 5cm pipeline.

Individual lines can be turned off, or a bar can be placed under the float to switch off troughs.

Most of the work took two years to complete using local contractors. Craig said it was worth the effort.

The Olivers now run 12DSE/ha, which they attribute to a combination of better pasture management, which has led to a noticeable improvement in pasture quality, and a more efficient layout.

"With every paddock linked by laneways, we can move large numbers of stock to virtually anywhere on the property," Craig said.

"Woody and I can both be working in the woolshed at shearing time and we simply let the sheep out of the yards and they take themselves home."

Being able to maintain good ground cover all year round and fencing off the creek has also improved the ability to manage run-off.

"The pasture base is much thicker so we're seeing a lot less run-off, particularly in those heavy summer downfalls," Craig said.

"While the downside is that there is less rain going into the dams, there's also a lot less dirt so they're not silting up either."

Apart from the solar battery panel on the pump running out every couple of years, the couple has had no problems with the system, which they describe as virtually maintenance-free.

"It's been terrific. I only wish we had found the money to do it sooner," Craig said.

Department of Primary Industries' farm planning project officer Valerie Little said the Olivers' system was an excellent example of what could be achieved by planning and improving a farm watering system.

The DPI runs a Farm Water Solutions project to provide advice on water systems.

"We are helping landholders consider how to effectively, efficiently and intelligently make the most of available supplies," Valerie said.