A major environmental restoration project along the Murray River in north-west Victoria has been temporarily halted after a Supreme Court challenge raised concerns about the protection of Aboriginal cultural heritage and consultation with First Nations communities.

Wadi Wadi traditional owner Vince Kirby successfully challenged the approval process for the Nyah section of the Victorian Murray Floodplain Restoration Project (VMFRP), arguing that traditional owners had not been adequately involved before cultural heritage approvals were granted. The Victorian Government and Lower Murray Water accepted that proper consultation had not occurred, resulting in the approval being considered invalid.

The court outcome means work at the Nyah floodplain site has been paused until a new Cultural Heritage Management Plan (CHMP) is prepared and approved. The CHMP process is designed to identify potential impacts on Aboriginal cultural heritage and establish measures to protect important sites before development or construction activities continue.

The VMFRP is designed to restore water flows to important floodplain environments along the Murray River. The broader project aims to improve wetlands, support native plants and animals, and strengthen river ecosystems by using infrastructure such as regulators, levees and controlled water management systems. Nyah and Vinifera are among nine floodplain areas included in the wider restoration program.

Mr Kirby said the decision was significant because it recognised the importance of traditional owners having a genuine role in decisions affecting Country. He said protecting waterways, wetlands and culturally significant places was essential for future generations of Wadi Wadi people.

The legal challenge follows months of community debate about the Nyah-Vinifera project. Environmental groups and some local residents have raised concerns about potential impacts on floodplain forests, native vegetation and wildlife. Supporters of the project argue that controlled flooding is needed because reduced natural flooding has damaged wetlands and affected the health of the Murray River system.

The project has received both support and criticism from environmental experts. Supporters say engineered water management is necessary to restore wetlands under changing climate conditions, while critics argue that natural river flows should be prioritised over large infrastructure projects.

The Vinifera section of the project is also facing a separate legal challenge relating to cultural heritage approval processes. The matter remains before the Supreme Court.

The Victorian Government said healthy floodplains are important for the long-term health of the Murray River and confirmed it would review the cultural heritage management process while consulting with relevant traditional owner groups.

The decision highlights growing recognition across Australia that environmental projects involving waterways and land management must include meaningful consultation with First Nations communities. Traditional owners continue to call for their knowledge and cultural connections to Country to be central in decisions about land and water management.