572
20.3.4.3 Example #3: The Murray-Darling River Basin of Australia
In Australia, the “Big Dry”- a long running drought- eventually resulted in a 2007
reconfiguration of water regulation in the Murray-Darling River Basin. This resulted
in the comprehensive management of water resources, agricultural production, and
environmental uses. As of early 2019, this structure is being tested by extreme temperatures and drought.
The Basin spans the southeastern portion of Australia. Both the Murray and Darling
Rivers make up the major river systems and have a history of use for hauling timber
and wool; gold development; and agricultural production. An arid region, precipitation and river flows tend to be unpredictable. A major drought throughout the early
2000s dubbed the Big Dry decimated agricultural production, causing in some cases
farmers to commit suicide. Lack of water affected drinking water supplies, food production, and energy supplies as well as local wetlands. A 2007 audit indicated 22 of
the 23 river systems in the basin were in poor ecological shape due to low surface
flows, saltwater intrusion from depleted groundwater tables, and the drought (MurrayDarling Basin Commission 2008). Officials theorized the key to future sustainable
water reserves depended on healthy ecosystems and river systems.
Reacting to these dire conditions, regulators overhauled water policy in the
Basin. In the Australian system, the volume of water allocated to each holder/user is
based on water availability in a watershed. In wet years, users receive more water as
a percentage of their right, less in dry years. Coupled with a more flexible water
allocation policy, the Water Act of 2007 added water market reforms to optimize
water use. These reforms focused on the true cost of water as a commodity. In its
simplest form, farmers or water users who hold entitlements or season allocations
wait for the Basin Authority to release annual allocations for each user. Based on the
allocation, the water user decides whether it will be more profitable to grow crops
or sell their water right. As the price of water fluctuates, users have relied on sales
of water allocations as a major revenue source (Richter et al. 2016). In addition, the
Water Act of 2007 requires managing surface water and groundwater together while
providing environmental flows as much priority as the actual consumption of water
by users.
The Australian government also earmarked $12.6 billion AUD over 10 years
starting in 2007 to improve environmental conditions across the basin through a
program called “Water for the Future.” This program depended on two methods: (1)
direct buy-backs of water entitlements from holders, and (2) efforts to improve onfarm efficiency through a focus on rural water use and infrastructure projects. Water
saved from increased efficiency is directed to river systems or used for flooding
wetland areas to initiate natural flow and water recharge (Richter et al. 2016). Until
recently, changes in regulatory policy have seen positive environmental responses in
the Basin and economic stability for farmers active in growing crops. However,
more recently in 2019, extremely high temperatures and low flows have led to widespread fish kills and greater impacts to the Murray-Darling Basin. Adapting to new
extremes conditions may also require revisiting water regulations.
L. B. Fowler and R. T. Caccese
20.3.4.3 Example #3: The Murray-Darling River Basin of Australia
In Australia, the “Big Dry”- a long running drought- eventually resulted in a 2007
reconfiguration of water regulation in the Murray-Darling River Basin. This resulted
in the comprehensive management of water resources, agricultural production, and
environmental uses. As of early 2019, this structure is being tested by extreme temperatures and drought.
The Basin spans the southeastern portion of Australia. Both the Murray and Darling
Rivers make up the major river systems and have a history of use for hauling timber
and wool; gold development; and agricultural production. An arid region, precipitation and river flows tend to be unpredictable. A major drought throughout the early
2000s dubbed the Big Dry decimated agricultural production, causing in some cases
farmers to commit suicide. Lack of water affected drinking water supplies, food production, and energy supplies as well as local wetlands. A 2007 audit indicated 22 of
the 23 river systems in the basin were in poor ecological shape due to low surface
flows, saltwater intrusion from depleted groundwater tables, and the drought (MurrayDarling Basin Commission 2008). Officials theorized the key to future sustainable
water reserves depended on healthy ecosystems and river systems.
Reacting to these dire conditions, regulators overhauled water policy in the
Basin. In the Australian system, the volume of water allocated to each holder/user is
based on water availability in a watershed. In wet years, users receive more water as
a percentage of their right, less in dry years. Coupled with a more flexible water
allocation policy, the Water Act of 2007 added water market reforms to optimize
water use. These reforms focused on the true cost of water as a commodity. In its
simplest form, farmers or water users who hold entitlements or season allocations
wait for the Basin Authority to release annual allocations for each user. Based on the
allocation, the water user decides whether it will be more profitable to grow crops
or sell their water right. As the price of water fluctuates, users have relied on sales
of water allocations as a major revenue source (Richter et al. 2016). In addition, the
Water Act of 2007 requires managing surface water and groundwater together while
providing environmental flows as much priority as the actual consumption of water
by users.
The Australian government also earmarked $12.6 billion AUD over 10 years
starting in 2007 to improve environmental conditions across the basin through a
program called “Water for the Future.” This program depended on two methods: (1)
direct buy-backs of water entitlements from holders, and (2) efforts to improve onfarm efficiency through a focus on rural water use and infrastructure projects. Water
saved from increased efficiency is directed to river systems or used for flooding
wetland areas to initiate natural flow and water recharge (Richter et al. 2016). Until
recently, changes in regulatory policy have seen positive environmental responses in
the Basin and economic stability for farmers active in growing crops. However,
more recently in 2019, extremely high temperatures and low flows have led to widespread fish kills and greater impacts to the Murray-Darling Basin. Adapting to new
extremes conditions may also require revisiting water regulations.
L. B. Fowler and R. T. Caccese