Gary Howard was fined $1500 without conviction by the Sale Magistrates Court, and ordered to pay costs to Southern Rural Water of $1500.

SRW's manager groundwater and rivers Craig Parker said the charges followed an investigation into an incident on the Latrobe River in March, where water was released from the river into Heart Morass.

Mr Parker said investigation showed Mr Howard had released the water onto the property, owned by the Field and Game Association.

"This prosecution is a timely reminder for landowners that they must have a valid licence to take and use water, and that they must comply with their licence conditions at all times,'' Mr Parker said.

"Simply taking water from a river, without any authority, is not acceptable and is unfair to other users, including the environment.''

At the time Mr Howard said the diversion was an attempt to prevent the wetland from becoming acidic.

He said the diversion was in the interest of protecting and maintaining the health of the Heart Morass.