Victoria has passed historic legislation that will finally allow federal control of the Murray-Darling Basin.
Premiers in the eastern and southern states signed an agreement earlier this year to transfer their powers over the water resource to the commonwealth.
Under the agreement, the states were given until November to pass the required legislation through their parliaments.
Victoria was the last state to pass its Water (Commonwealth Powers) Bill, voting in favour of the bill on Wednesday after opposition parties delayed the debate last month, seeking amendments.
Passage of the bill in Victoria followed the federal opposition's decision on Tuesday to abandon its opposition to the federal takeover of the basin.
Despite serious concerns about the Sugarloaf pipeline, which will take 75 billion litres of water from the basin to Melbourne, Liberal Senate leader Nick Minchin said the opposition would now back the takeover.
Victorian Water Minister Tim Holding chastised the state opposition for delaying the passage of the bill.
"The Liberal, National and Greens parties say they support reform of the Murray-Darling Basin but the truth is they have delayed the passage of this vital legislation in the Senate and here in Victoria by playing silly political games," he said in a statement.
"They had no intention of pursing these amendments.
"The opposition has a growing reputation for loud and bold promises followed by meek backdowns.
"Now the Commonwealth and the Murray-Darling Basin states can get on with improving the health of the Murray River."
The passage of the bill allows the creation of the Murray Darling Basin Authority and for federal funding to flow to the states for water infrastructure projects.
Earlier on Wednesday, South Australian Premier Mike Rann said Victoria should be penalised for failing to meet the deadline to pass the legislation.
A spokeswoman for federal Water Minister Penny Wong told AAP the federal government welcomed the development.
It was great that all states and territories had passed equivalent laws in their own parliaments, the spoeswoman said.