Australian Water Resources

1. Australian Water Resources • Brief overview • History • Water resource issues in Australia • COAG Water Reforms • Tradeoffs between biodiversity & economy • A case study - the Murray-Darling Basin • The Cap • Institutional arrangements • ICM framework • Comparisons with South Africa

2. Water in general • Water problems are emotional • Water issues are political • Water solutions are technical

3. Triple vision? Balancing social, environmental and economic dimensions of water resource management

4. Land use in Australia

5. Brief overview • Australia is dry - average rainfall 470mm/yr • Only 12% rainfall runs off to rivers • Climate is highly variable - “where the rivers are dry or 10 feet high” • Population in SE, water in NW • Murray-Darling Basin is large ICM trial • 14% land area (1 million km2), 70% all water used for irrigation, 40% agricultural GVP • Great Artesian Basin is world’s largest aquifer • 15 million ML groundwater available each year

6. Australia is dry

7. Australians use a lot of water

8. History • 1795 - Protection of Sydney’s water supply • 1857 - First major dam & reticulated water supply • 1880 - Water & Conservation District Act (VIC) • 1901 - Federation: 6 states each managing water • 1915 - River Murray Agreement • 1949 - Snowy Mountains Scheme • 1971 - Lake Pedder Dam • 1983 - Blue green algal scare in Darling River • 1985 - Murray Darling Basin Commission formed • 1987 - Privatisation of irrigation schemes • 1994 - COAG water reforms • 1997 - Introduce Cap on extractions from M-DB

9. Water Resources Demand exceeds supply - 26% areas over-allocated 30% groundwater units over-allocated Natural turbidity Phosphate pollution Nitrate pollution Algal blooms Salinisation - especially in southern basins Changed flow regimes Pest fish species Catchment Resources Devolution of authority Politics of water & catchment management Cost of repairing damage Declining runoff due to off-stream storage Rising saline water tables Alien plants & animals Declining biodiversity Increasing returns from irrigated agriculture Water resource issues

10. Water quality issues

11. 1994 COAG Water Reforms • Strategic framework for water industry reform to ensure efficient and sustainable use of water • Links environmental & economic objectives: • Environmental flows • Improve water quality • Integrated catchment management • Pricing water at full cost of resource & services • Water trading within & between basins • Separate service delivery & regulation • Aims for consistent approach nationally

12. Case study: MDBC • Murray-Darling Basin covers 1 million km2 • 14% Australia, 70% irrigation, 40% Ag. GVP • Murray-Darling Basin Commission formed 1985 • 6 governments in partnership with community • Large integrated catchment management trial • Different instruments for change: • ICM Statement - goals, values & principles • Salinity Strategy - strategic investigations & actions • Basin Sustainability Program - $ for implementation • Local Action Planning groups - participation • Regulating flows, supervising inter-state trade

13. Water use trends: 1983-1996

14. The Cap • 1995 - moratorium on growth in water diversions • 1997 - permanent cap on water diversions • Demand for water continuing to grow fast • Price of permanent water entitlement increased from A$400 to A$1200 per ML between 1995 and 2002 • Volume traded increasing at 30% per year • Growing market for leased water • Politically difficult - tradeoffs & compromise • Queensland & NSW considering pulling out • Good example of integrated management of economic, social & environmental issues

15. Tradeoff: value & volume

16. MDBC Institutions

17. The ICM Framework • Goal & vision for healthy rivers, innovative and sustainable industries and healthy communities • Management of social, economic & social assets • Framework for hard choices - tradeoffs • 40% reduction in irrigation to protect endangered fish • Increase cost of water to include “resource rent” • Value ecosystem services • Change flow regimes to protect wetlands • Reduce salinising activities to protect ecosystems • Introduce end-of-valley targets • Penalise catchments that don’t meet targets • Devolve responsibility & resources to community • Increase collaboration between states & agencies

18. Tradeoff: biodiversity & economy

19. Comparisons with SA • Similar tradeoffs between environment & economy • over allocation in some basins • political imperative for regional economic development • growing voice for the environment from urban elites • Social dimension in SA includes equity issues • National policy setting increases consistency • Water and land institutions remain separated - IWRM rather than ICM • International dimensions & inter-basin transfers • NWA structure similar to Australian Acts • sustainable use & management of water resources • public participation in water resource management • balance between economy, ecology & community

20. What is sustainable use? • How should water be used? • Where should water be used? • How much should water cost? • Who decides the tradeoff between water for the environment and water for development? • Who has the right to use water? • How can rivers, wetlands and groundwater be saved or restored? • Are there multiple use strategies to meet both environmental and economic needs?

21. Resources • www.mdbc.gov.au • www.nlwra.gov.au • www.csiro.org.au/lw • www.lwa.gov.au • www.wri.org • www.worldbank.org/water • www.wrc.gov.za • www.dwaf.gov.za