Harvard University Water Federalism Conference

1. Harvard University Water Federalism Conference Murray-Darling Basin April 20, 2012 • Research Team: • Tom Gole • Amy Sennett • Emma Chastain • Sarah Farrell • Jasdeep Randhawa • Chengyan Zhang

2. Overview • I. Historical Challenges and Responses • II. Basin Facts Overview • III. Contemporary Challenges

3. Historical Challenge and Response 1 State-Led Development (1830-1900) • Tension between the states on navigation vs irrigation • Resolution at Federation in the Commonwealth Constitution

4. Historical Challenge and Response 2 Average annual flow Total storage 1.5 times average annual flow Engineering the River (1900-1994) • Naturally variable water flow • 1915 River Murray Waters Agreement • Establishes water sharing principles • Creates plans for construction and management of storage infrastructure • 1992 Murray-Darling Basin Agreement

5. Historical Challenge and Response 3 Instituting Market Mechanisms (1994-2007) The Cap Water Diversion (GL) • 1994 National Competition Policy • 1994 Water Reform Framework • Water rights • Water trading • The 1995 Cap Total NSW VIC Year Queensland SA

6. Historical Challenge and Response 3 Instituting Market Mechanisms

7. Historical Challenge and Response 3 Instituting Market Mechanisms (1994-2007) • 2004 National Water Initiative • Living Murray Initiative

8. Historical Challenge and Response 4 Reforming River Institutions (2007) • Millennium Drought exacerbates slow “Consensus-Based” management • Failure to get state referral of powers • Commonwealth government introduces Water Act of 2007 • Final Act based on Commonwealth obligation to implement international environmental treaties

9. Basin Overview • Flat geography • Characterized by variability in: • Climate • River Flow • Rainfall • Two Rivers • Murray • Darling

10. Basin Overview: Hydrology River Murray System Annual Inflows from July 1891 to 2011

11. Basin Overview: Hydrology • Only 4% of rainfall becomes surface runoff • Small changes in precipitation lead to proportionally larger changes in river flow

12. Basin Overview: River System Infrastructure • Highly regulated Basin • Amount of storage relative to river flow is high in order to manage variability

13. Basin Overview: Water Act of 2007 • Creates Murray-Darling Basin Authority (MDBA) as a federal agency • Requires MDBA to prepare a Basin Plan • Establishes Commonwealth Environmental Water Holder to manage federal water entitlements

14. Basin Overview: Post-Water Act Institutions of the Basin Commonwealth Water Minister Department of Sustainability, Environment, Water, Population and Communities Murray-Darling Basin Authority (MDBA) Commonwealth Environmental Water Holder (CEWH)

15. Contemporary Challenges 1. Determining How Much to Consume: Establishing Sustainable Limits 2. Rearranging Federal-State Relations 3. Developing Effective Institutions and Infrastructure for Watering the Environment

16. Contemporary Challenge 1 Determining allocation between environment and economics 2. Rearranging Federal-State Relations 1. Establishing Sustainable Limits Scientific vs societal determinations 3. Watering the Environment Community concerns and development

17. Contemporary Challenge 2 1. Establishing Sustainable Limits Limited federal power 2. Rearranging Federal-State Relations State-based water management schemes 3. Watering the Environment Federal strengths and weaknesses

18. Contemporary Challenge 3 1. Establishing Sustainable Limits Returning water to the environment 2. Rearranging Federal-State Relations 3. Watering the Environment Institutional Management CEWH Physical delivery of water

19. Conclusion • Historical struggle to balance: • Water scarcity • Competing environmental, social, economic needs • Challenges for the future: • Balance of environmental and economic needs • Balance of state and federal responsibilities • Developing effective institutions for environmental watering