The Wimmera Catchment Management Authority is preparing to have discussions with the state government, which has vowed to boost native fish populations in northwest Victoria.
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On Friday, the Victorian Environmental Water Holder announced it would sell up to 10 gigalitres of its Murray allocation in the northern Victorian water market to irrigators, saying this water was not required this year or to be set aside for next year.
Then on Tuesday, the government said revenue raised from the sale would be invested in projects planned to boost environmental outcomes.
David Brennan, chief executive of the Wimmera CMA, said the organisation would work closely with the government and the water holder to identify the region's priorities.
"Some measures could be in-stream revegetation and placing logs into the Wimmera river to increase fish habitat to promote better fish breeding," he said.
"(The government will) do the sale and let the market determine the price of the water, and once we know how much money's been raised we'll be in contact with them.
Mr Brennan said he was particularly interested in projects to improve Murray Cod and Golden Perch numbers receiving support.
"But equally small fish such as Gudgeons and Minnows - which are around the 10 centimetre mark in size - are food for those larger fish species, so if we support them it has flow-on effects for the ecosystem."
Water Minister Lisa Neville said the VEWH's decision would free up precious water for farmers