CLIMATE change has been cited as a key reason for the rejection of applications for new groundwater licences in southwest Victoria.
The Victorian Civil and Administrative Tribunal last month upheld Southern Rural Water's rejection of applications for groundwater at Hawkesdale and Yambuk.
Hawkesdale prime lamb producer Gary Morrison had applied for access to 1220 megalitres of groundwater a year, while Yambuk farmer Andrew Graham had sought a 280-megalitre annual licence.
Both appealed to VCAT when SRW knocked back their applications.
But VCAT ruled that rain was the key to the groundwater availability and it was subject to "long-term climate change influences".
"Central to this issue is ... the way it (groundwater) is potentially impacted by a range of matters, such as climate change and climate variability," VCAT ruled.
"Applying the precautionary principle, we have concluded that the licences should not be granted due to a lack of certainty about the ... future projected availability of groundwater within the Hawkesdale GMA (groundwater management area)."
Climate change has already been a factor in at least three VCAT decisions involving coastal residential development.
The first was in 2008, when VCAT overturned South Gippsland Shire's approval of six homes at Toora on the basis that the impact of climate change on sea levels made the land unsuitable for housing.
Planning and environmental barrister Tom Pikusa said in many cases, decision makers now found themselves in a "policy vacuum" because of uncertainty about the impact of climate change.
But Mr Pikusa said water authorities and VCAT would continue adopting the "precautionary principle".
"Water authorities are really starting to run the argument (that climate change should be factored into decisions) because ... they are very concerned about the fact groundwater resource is diminishing very quickly," Mr Pikusa said.
Neither Mr Morrison nor Mr Graham were available to comment on the case and whether they intended to appeal VCAT's decision.
