The controversial north-south pipeline looms as a major issue at the 2010 state election, after the Liberal and National parties vowed that Melbourne would receive no water through the pipe if they win government.
The escalation of the parties' opposition to the pipeline came as work finally started on the project yesterday, almost four months later than originally planned.
The parties had opposed the pipeline concept, but until yesterday had refused to outline what they would do with the $750 million project if they took power.
The Opposition previously claimed it did not believe the pipe would ever be built and consequently could not consider decommissioning it.
But as construction became a reality yesterday, Opposition water spokeswoman Louise Asher raised the stakes, declaring a Baillieu government would render the 70-kilometre pipe dormant.
"A Coalition government will not take water from that pipeline. We have been opposed to the project since day one," she said.
"We are not going to vandalise something that is constructed; we are just not going to use it."
The pipeline is linked to a billion-dollar upgrade of irrigation infrastructure in the nearby Goulburn-Murray district, with Melbourne planned to take a third of water saved by the upgrades through the pipe.
Ms Asher said the upgrades should proceed, but all the water savings should remain in northern Victoria.
The comments have massive ramifications for Melbourne Water, which has spent $300 million on the irrigation upgrades and $750 million on the pipeline in the belief it will get up to 75 billion litres of water each year.
The water arrangement is due to be formalised as a "bulk entitlement" in the Victorian Parliament by Water Minister Tim Holding within months.
Ms Asher said the Opposition was "clearly conscious" of Melbourne Water's financial investment in the project, but it was too early to say whether a Coalition government would simply reimburse Melbourne Water or force it to sell its annual water entitlement to buyers in northern Victoria.
"The financial arrangements as it impacts on Melbourne Water will be released … in due course," she said.
Project director Rod Clifford said the pipeline was expected to be completed by about March 2010, and would be supplying water by the middle of that election year.
Mr Holding attacked the Opposition's revised pipeline policy, saying it would put Melbourne "at real risk of running out of water", with the desalination plant not expected to supply water until 2011.
"The Liberal Party would be responsible for Melbourne households and businesses throwing away more than $1 billion without providing an extra drop of water," he said.
"They will pay more than $300 million for irrigation upgrades in regional Victoria and not see any more water, and lose $750 million for a pipeline that will remain dry."
Melburnians' consumption of water has continued to rise, with Melbourne Water saying yesterday that last week's average daily usage was about 4% higher than the same time last year.
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