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The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or polici es of the Asian

Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the dataincluded in this paper/presentation and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be

consistent with ADB official terms.

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Water Resources Development in Australia

• pre 1915 Development of a water rights

framework

• 1915 – 35 Regulation of rivers to enable

settlement and transport

•  1935 – 80 Construction of large dams and water

conservation schemes

- to secure urban water supply

- foster economic development - irrigation

• 1980 - now  Addressing emerging issues and

managing competing uses

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History of water management in Australia

• 1880s Rights to use and control water vested

in government

• 1901 Federation – state’s manage water 

• 1915 Interstate water sharing agreements

•1987 Murray-Darling Basin Agreement

• 1994 Council of Australian Government

water reforms

• 2004 National Water Initiative

• 2007 Commonwealth Water Act

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Objectives of Water Reform in Australia

• Increase the productivity and efficiency of water use

throughout Australia

• Provide safe and secure drinking water for urban

and regional communities and to protect public

health

• Maintain the health and productivity of rivers and

groundwater sources

• Provide certainty for investment

• Implement water management regimes that canadapt to change

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Key Elements of Water Reform

• Clearly defined water entitlements for all users

• Volumetric entitlements

• Water rights separate from land rights

• Metering (or measuring) water use

• Functioning water markets and removal of trade barriers

• Water pricing and recovery of costs of water management

from users

• Reducing extractions to sustainable diversion limits

•

Recovery of water and providing environmental flows• Community participation in water planning and management

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Irrigation and water use modernisation

1980 to present - Rural

• privatisation and/or corporatisation of government-ownedirrigation areas

• pipelines or sealing of open-channel systems

•

adoption of water use technology in high intensityirrigation

• recycling and reuse of water

• issue of water use licences with environmental conditions

• water trading between irrigators

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Irrigation and water use modernisation

1980 to present

Urban

• recycling

• storm water management

• desalination

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the Millennium Drought

• 1997-2009 worst, deepest on record

• Drier than ‘ worst case’ climate change scenario in 2015 

• Showed the market was critical

• Further reforms made

• built on the previous 20 years

• enable the market to operate in very dry years

• enable entitlement holders to manage their own risk

• demand management and conservation

• Government investment in efficiency

• Urban – water grids, recycling, stormwater management and

‘water-sensitive cities’ • Irrigation – system modernisation and on-farm efficiencies

• Environment – pragmatic, seasonally responsive managementand works

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Reform & Modernisation Outcomes (1)

• 80% of all water sources managed under statutory plans

- defined sustainable diversion limits- no new entitlements

• Clearly defined tradable water entitlements- can be used to secure finance

• Mature water market (2012/13 turnover = $1.1billion USD)

• > 3000 GL (million m3) recovered for the surface waterenvironment from within the MDB

• > 1000 GL (million m3) recovered from over-allocatedgroundwater sources

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Reform & Modernisation Outcomes (2)

•Significant reductions in water use and increased wateruse efficiency

• Sydney water use 75% of 1980s (despite additional 1million people)

• Equivalent of 25% of water entitlements in MDBrecovered for the environment.

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Thank you