Water Minister Keith Pitt announced the Water Efficiency Program (WEP) will be scrapped for the new $1.48 billion Off-farm Efficiency Program which will invest in water saving infrastructure upgrades along the basin.

Mr Pitt made the announcement on the final day of a four-day tour along the southern basin, visiting towns including Albury, Finley, Deniliquin and the Barmah Choke.

The program will not impact farmers' water entitlements but rather upgrade ageing irrigation infrastructure.

"My priority is to put communities back at the heart of the Murray-Darling Basin Plan and this is another step in that process," Mr Pitt said.

"The WEP has not worked as it was expected to.

"The WEP has recovered just 0.2GL since 2019 - that's 0.04 per cent of the 450GL target of additional water for river health outcomes that our government is committed to recovering.

"Off-farm water recovery means we can actually progress our river health targets and, unlike on-farm programs we do not reduce water availability in the consumptive pool."

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Wodonga-based Victorian senator Bridget McKenzie said it's an issue her party has been fighting hard for.

"We've made it very clear over the past year that no more water should be taken from our productive capacity and that irrigators in our state have given too much already," she said.

"It's had a deep negative impact on many of our communities, particularly in northern Victoria and it's great to see the government has heard that message.

"By putting an end to buybacks and investing in off-farm water efficiency, we're making sure the concerns of our communities and farmers are the priority."

Mr Pitt said they have identified 50 off-farm projects that will form the core of the program.

"Ten of these projects could start within three to 12 months, fast-tracking works that can benefit local economies and save water," he said.