Lake Mokoan one step closer to being returned to wetlands

Lake Mokoan is one step closer to being returned to a wetland with work starting to break the wall of the man made lake.

The Victorian Government project will provide 50 billion litres of water a year for stressed rivers.

The project was originally announced as part of the Our Water Our Future water security plan for Victoria to deliver on commitments to the Snowy and Living Murray projects.

Breaking through the wall marks the end of Victoria's most inefficient water storage and the start of one of the most significant restoration projects in Victoria that will provide major environmental benefits.

Once the full decommissioning of Lake Mokoan is complete, work can start on turning the site into a world class wetlands and recreational and tourism asset for Benalla and surrounding communities, and recovering water for the environment.

Lake Mokoan was built in 1971 over the Winton Wetlands in the Broken River system as water storage for irrigators in the Goulburn system in North East Victoria.

But because it is very shallow the lake lost about 50 billion litres of water a year due to evaporation, and has been plagued by water quality problems.

Water Minister Tim Holding, who inspected the work to remove the wall, said the government could not sit by and let the massive water waste continue.

"The decommissioning project will benefit stressed rivers, provide a great tourism asset for the local region and ensure irrigators continue to have access to reliable water supplies," Mr Holding said.

"Returning Lake Mokoan to its natural state has enormous environmental benefits and delivers on a major Victorian commitment under the Living Murray Initiative and the Snowy program."

Irrigators who relied on the lake for water have either been connected to a new pipeline providing them with a more reliable water supply, or were given the option of selling their existing water rights.

Management of the wetlands will be handed over to the newly formed Winton Wetlands Committee to follow through with up to $20 million provided for the restoration of the wetlands.