The Water Act 2007
Frequently asked questions
Q: When did the Water Act commence?
A: The Commonwealth Water Act 2007 commenced on 3 March 2008. The Water Act implements key reforms for water management in Australia.
Q: Does the Water Act replace the National Water Initiative?
A: No. The National Water Initiative (NWI) remains the blueprint for water reform in Australia. The Water Act will assist in implementing many of the elements of the NWI including
- a water market and trading scheme for the Murray-Darling Basin (the Basin),
- best practice water pricing,
- working with all parties in the Basin to ensure a balance is kept between all water users, including water to keep wetlands and river systems healthy, and
- keeping up-to-date records of our water availability and use.
Q: Will the Water Act affect the funding for irrigation infrastructure and over allocation funding programs?
A: No. These programs are independent of the Act.
Q: Can the Murray-Darling Basin Commission be combined with the Murray-Darling Basin Authority and if so would this affect the Water Act?
A: The government is committed to bringing these two organisations together. This will require negotiations with the Basin States. If they are brought together the Water Act would need to be amended.
Q: Where can I obtain a copy of the Water Act?
A: A copy can be obtained here Water Act 2007
Further information on the Water Act may also be obtained by looking at:
- the Explanatory Memorandum to the Water Bill 2007
The implications of the commencement of the Act can be broken down into the following headings.
- The Basin Plan, including a sustainable cap on diversions,
- Water Charging, Water Market and Water Trading Rules,
- Environmental water, and
- New investments in water information
The Basin Plan
Q: What is the Basin Plan?
A: The Water Act establishes an independent, expert-based body, the Murray-Darling Basin Authority. The Authority will oversee water planning considering the Basin as a whole, rather than state by state, for the first time.
The Murray-Darling Basin Authority will be required to prepare a strategic plan for the integrated and sustainable management of water resources in the Murray-Darling Basin. This plan is referred to as the Basin Plan.
The Water Act establishes mandatory content for the Basin Plan, including:
- limits on the amount of water (both surface and ground water) that can be taken from Basin water resources on a sustainable basis - known as long-term average sustainable diversion limits. These limits will be set for Basin water resources as a whole and for individual water resources (that is, individual catchments and aquifers within the basin);
- strategies to manage risks to Basin water resources, such as climate change;
- what it is that state water resource plans must address;
- an environmental watering plan specifying environmental objectives, watering priorities and targets;
- a water quality and salinity management plan; and
- rules about trading water rights in relation to Basin water resources.
Q: Can I participate in the development of the Basin Plan?
A: Yes. The Basin Plan will be prepared in consultation with Basin States and communities. The Basin Plan is expected to be in place in 2010.
Q: Will the Commonwealth have the power to enforce legislation and the Basin Plan?
A: Yes, the Commonwealth will have a range of powers to ensure compliance with the Water Act, including in relation to diversion limits, trading and charging rules and provision of water information.
Water Charging, Water Market and Water Trading Rules
Q: What will the Australian Competition and Consumer Commission's role be in relation to pricing and charging?
A: The Australian Competition and Consumer Commission will provide advice to the Minister on water charge rules which will apply within the Murray-Darling Basin, and will be responsible for enforcing these rules. These rules, based on the National Water Initiative principles, will ensure that charges are set in a way that promotes economically efficient and sustainable use of water resources.
Q: What will the ACCC's role be in relation to water market and water trade rules?
A: The ACCC will provide advice to the Murray-Darling Basin Authority on water trading rules to apply within the Murray-Darling Basin under the Basin Plan. The ACCC will also provide advice to the Minister on water market rules to apply within the Murray-Darling Basin and will be responsible for enforcing these rules.
Q: What consultation will occur with stakeholders in preparation of water market and water charge rules?
A: The ACCC will undertake consultation in preparing its advice. Regulations are currently being prepared that outline the consultation that must be undertaken with the states, stakeholders and the public, in the making of water market and water charge rules.
For further information on the role of the ACCC in relation to the Water Act visit http://www.accc.gov.au .
Environmental water
Q: What will be the role of the Commonwealth Environmental Water Holder under the legislation?
A: The Water Act establishes the Commonwealth Environmental Water Holder to manage the Commonwealth's environmental water holdings.
New investments in water information
Q: What will be the role of the Bureau of Meteorology under the legislation?
A: The Bureau of Meteorology will be authorised to collect and publish water information on a national basis. The publications will include a National Water Account and periodic reports on water resource use and availability.
The Bureau will also be empowered to set and implement national standards for water information. A major outcome of the Bureau's work will be increased transparency, confidence and understanding of water information.
For more information visit http://www.bom.gov.au/water/regulations/ .
Contact for further information
For further information on the Water Act you can email WaterPlanEnquiries@environment.gov.au or call 1800 218 478.
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