The Australian and Victorian governments have signed a new contract for stage two of the $1.2bn Northern Victoria Irrigation Renewal Project (NVIRP).
The project will save 214 gigalitres of water, which will help Victoria reach the sustainable diversion limits under the Murray Darling Basin plan.
According to a previous agreement, the Australian Government will contribute $953m and Victoria $106m.
Under the new agreement, the amount of water to be returned to the environment has more than doubled from the amount originally planned.
The second stage of the NVIRP includes upgrading irrigation delivery systems to benefit properties across the Goulburn Murray Irrigation District for seven years.
