Baillieu defends water policy

Victorian Opposition Leader Ted Baillieu has defended his water policy after criticism from the Government and Environment Victoria.

If elected, the Liberals plan to build a new dam at Arundel, behind Melbourne Airport.

Mr Baillieu says the dam is needed to sustain Melbourne's population and deal with the city's water shortage.

Water Minister John Thwaites says the dam will do nothing more than destroy the Maribyrnong and Melbourne Water released a statement last month, dismissing the idea because of the 'significant environmental impact'.

But Mr Baillieu says the Labor Party's efforts when it comes to Melbourne's water supply have been less than impressive.

"The Government had seven years, seven years of power, seven years of money, seven years of authority and opportunity but they've done very little," he said.

"They've had us instead showering together and praying for rain - that's not enough - we need to make some decisions and get on with it."

Mr Thwaites says Victorians are doing well to save water without a new dam.

"Under the Bracks Government's water policy, we have saved 22 per cent water per head," he said.

"That's the equivalent of about three of Melbourne's dams and we've done it without wrecking the Maribyrnong or the Yarra River."