Reports of potential water related offences has increased by 25 per cent on last season, according to Goulburn-Murray Water.
G-MW water services manager Kevin Preece said the increase was probably due to a vigilant community far less tolerant of water theft and increased G-MW surveillance efforts as water became more scarce.
"Community reporting has certainly increased, but a key factor is that with so little water available it is relatively easy to detect where water is being used and to verify if the user is entitled to water," Mr Preece said.
"In this time of extended drought our customers and the community expect us to protect the scarce resource and ensure water is shared between all legitimate water users and the environment.
"G-MW has investigated over 330 reports of potential Water Act offences in 2008/09 that include taking water without authority or failing to comply with licence conditions."
G-MW says less than 70pc of these reported incidents end at court following initial investigations.
"There are often unsubstantiated reports and that may be legitimate water use paid for and used by customers," Mr Preece said.
"Clearly around 330 reports represents a very small number from amongst more than 30,000 water using customers.
"We thank the vast majority of our customers who continue to do the right thing and a vigilant community who clearly see Water Act offences as stealing water from legitimate users, the environment and our communities."