John Fargher, Australia Australian Water Resources zBrief overview zHistory zWater resource issues in Australia zCOAG Water Reforms zTradeoffs between.

John Fargher, Australia

Australian Water Resources

Brief overviewHistoryWater resource issues in AustraliaCOAG Water ReformsTradeoffs between biodiversity & economyA case study - the Murray-Darling Basin

The Cap Institutional arrangements ICM framework

Comparisons with South Africa


Water in general

Water problems are emotional

Water issues are political

Water solutions are technical


Triple vision?

Balancing social, environmental and economic dimensions of water resource

management


Land use in Australia


Brief overview

Australia is dry - average rainfall 470mm/yrOnly 12% rainfall runs off to riversClimate is highly variable - “where the rivers

are dry or 10 feet high”Population in SE, water in NWMurray-Darling Basin is large ICM trial14% land area (1 million km2), 70% all water

used for irrigation, 40% agricultural GVPGreat Artesian Basin is world’s largest aquifer15 million ML groundwater available each year


Australia is dry

Stream flow by continent

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Australians use a lot of water

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History1795 - Protection of Sydney’s water supply1857 - First major dam & reticulated water supply1880 - Water & Conservation District Act (VIC)1901 - Federation: 6 states each managing water1915 - River Murray Agreement1949 - Snowy Mountains Scheme1971 - Lake Pedder Dam1983 - Blue green algal scare in Darling River1985 - Murray Darling Basin Commission formed1987 - Privatisation of irrigation schemes1994 - COAG water reforms1997 - Introduce Cap on extractions from M-DB


Water resource issues

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 quality issues


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


Case study: MDBCMurray-Darling Basin covers 1 million km2

14% Australia, 70% irrigation, 40% Ag. GVPMurray-Darling Basin Commission formed 19856 governments in partnership with communityLarge integrated catchment management trialDifferent 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


Water use trends: 1983-1996


The Cap

1995 - moratorium on growth in water diversions1997 - permanent cap on water diversionsDemand 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


Tradeoff: value & volume

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MDBC Institutions


The ICM FrameworkGoal & vision for healthy rivers, innovative and

sustainable industries and healthy communitiesManagement of social, economic & social assetsFramework 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 targetsPenalise catchments that don’t meet targetsDevolve responsibility & resources to community Increase collaboration between states & agencies


Tradeoff: biodiversity & economy


Comparisons with SASimilar 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 issuesNational policy setting increases consistencyWater and land institutions remain separated - IWRM

rather than ICM International dimensions & inter-basin transfersNWA structure similar to Australian Acts

sustainable use & management of water resources public participation in water resource management balance between economy, ecology & community


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?


Resources

www.mdbc.gov.auwww.nlwra.gov.auwww.csiro.org.au/lwwww.lwa.gov.auwww.wri.orgwww.worldbank.org/waterwww.wrc.gov.zawww.dwaf.gov.za

John Fargher, Australia Australian Water Resources zBrief overview zHistory zWater resource issues in Australia zCOAG Water Reforms zTradeoffs between.

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