ALMOST 500 jobs have been lost within the Wakool Shire due to a reduction in irrigation water availability.

An Economic Impact Assessment commissioned by the Wakool Shire Council has found that since 2002/2003, irrigation water entitlements in the shire have halved from 304,000ML to around 152,000ML in 2014/15.

This, coupled with drought and farm consolidations, has led to a loss of 328 jobs in the agricultural sector and a further 166 jobs in other sectors of the community as a flow-on effect.

Mayor Neil Gorey said the findings were disturbing and highlighted the changing environment the shire was dealing with.

"The resilience of our economy and our communities is certainly being tested at the moment. Businesses, including our farmers, are looking at doing things differently and investigating other markets and business opportunities," Cr Gorey said.

One such community member is Jeremy Morton, a dryland and irrigation farmer, who has had to cut back from four fulltime staff to one.

Mr Morton has been farming since 1987 when access to water was never an issue.

However, he said when farmers had an option to sell their water entitlements to the government during the drought many had no choice as they faced hefty debts.

He said the idea that was implemented — to buy water from irrigators to fix the problem — "wasn't very well understood".

For more on this story, pick up a copy of Monday's Guardian (Oct 13).