Fact sheet: Water recovery to 'bridge the gap'
Department of Sustainability, Environment, Water, Population and Communities, November 2011
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Some water currently used for human purposes in the Murray-Darling Basin needs to be recovered and returned to the environment to restore its health and underpin a sustainable future for its industries.'
Governments are responsible for recovering this water. The Australian Government in undertaking water recovery sufficient to 'bridge the gap' by the time the sustainable diversion limits (SDLs) set out in the Basin Plan take effect in 2019. Basin wetlands and biodiversity will benefit from the recovery of this water.
The gap is the difference between the baseline diversion limits and the SDLs of the Basin Plan.
The Australian Government is bridging the gap by investing heavily in irrigation modernisation, which is generating water savings, by exploring the feasibility of environmental works and measures that may further reduce the gap, and through water entitlement purchases.
What does the gap mean in my community?
Communities in some catchments will have no gap to bridge. Their current level of water use is already at or below the SDLs in the plan.
The communities that will have a gap will have ample time to adjust to reduced water availability. Reform will not happen overnight. Changes to diversions will be phased in between now and 2019, and recovery of water for the environment will be achieved through a measured pace.
The government understands those communities that rely on irrigation will face challenges in transitioning to a future with less water and is supporting them to do so.
Local people will be involved in every part of the process and have a say in how the SDLs can best be achieved. The government will work with communities to identify impacts of reduced water use and develop solutions.
Water-saving infrastructure in the Murray-Darling Basin
Inspecting pipes removed from a decommissioned section of the redundant Marthaguy Irrigation Scheme channel.
The funding priority until the mid term review will be infrastructure rather than purchasing water.
Through the Sustainable Rural Water Use and Infrastructure Program the Australian Government is providing $4.8 billion for projects in the Basin such as:
- improving infrastructure planning so irrigation network operators and local governments can prioritise and plan for upgrades
- improving distribution networks to fix old systems, raise the standard of supply and reconfigure channel delivery systems
- investing in more efficient on-farm irrigation technology such as converting flood irrigation to sprinklers and drip systems
- environmental works and measures such as new regulators that deliver environmental watering outcomes more efficiently.
Investing in water-saving infrastructure is helping communities adjust to future sustainable diversion limits set by the Murray-Darling Basin Authority's Basin Plan. These investments improve the health of our rivers and wetlands by returning a share of the water savings to the environment. They also modernise farm technology, make irrigation more efficient and productive with less water, and help put water use on a more sustainable footing. They also have the added bonuses of supporting local businesses and increasing food security.
Increasing water efficiency on farms across the Murray-Darling Basin
On-farm irrigation infrastructure, such as drip irrigation systems and centre pivot irrigators as an alternative to flood irrigation, can reduce water losses in some instances. The $300 million On-Farm Irrigation Efficiency Program helps irrigators in the Lachlan and southern connected system of the Murray-Darling Basin to modernise their on-farm irrigation infrastructure while returning a share of water savings to the environment.
Upgrading irrigation delivery systems
The Australian Government is providing funding to upgrade irrigation schemes, both off-farm and on-farm. Irrigation channels are being replaced with pipelines to reduce water losses. The Private Irrigation Infrastructure Operators Program in NSW provides funding to private irrigation infrastructure operators in NSW to modernise and upgrade irrigation infrastructure.
The program acquires water entitlements, for the environment, wetlands and biodiversity from water savings generated by projects that improve the efficiency and productivity of water use and management, both off and on-farm. The program is also helping secure a sustainable future for irrigation communities.
Q. How do I apply for funding?
A.When grant rounds open they are advertised on AusTender and on the web at www.environment.gov.au/water If you would like to find out more about the types of infrastructure, irrigation and urban water funding rounds, visit the website or call 1800 218 478.
Q. What funding rounds are currently open?
A. The Irrigation Modernisation Planning Assistance Program will is open to receive and assess applications until 29 October 2012, unless all available funds are committed earlier. This program helps irrigation water providers to develop modernisation plans for their districts that identify ways to upgrade irrigation infrastructure and assess options to adapt to a future with less water.
Water purchasing
As part of its recovery program, the Australian Government is buying water entitlements from irrigators who offer them for sale, to help restore the balance between water for human use and for the environment in the Murray-Darling Basin. This rebalancing will help address the health of ecosystems, the Basin's wetlands and biodiversity.
The buyback is complemented by significant investment in modernisation and renewal of irrigation infrastructure across the Basin.
 | Every drop of water secured by the government for the environment will be paid for through investment in water- saving infrastructure projects or through buybacks, at market rates. |
 | The government will not compulsorily acquire water. There will be no cuts to the water entitlements of farmers who wish to keep irrigating as the result of these reforms. |
Water recovery in the Murray-Darling Basin
Buying back water entitlements is just one part of a range of water initiatives that work together to balance the needs of communities, regional industries and the environment. The future priority is for infrastructure projects over water purchasing.
The buyback is complemented by significant investment in modernisation and renewal of irrigation infrastructure across the Basin.
Infrastructure investment Irrigators benefit from more efficient distribution systems and improved on-farm technology. Infrastructure investment improves efficiency of water delivery and use and saves water that can be shared between the environment and irrigators. |  | The Australian Government is using infrastructure investment and water buybacks to bridge the gap between current water diversions and final sustainable diversion limits in the Basin Plan. | 
| Water buybacks Water buybacks obtain water for the environment from irrigators who offer their water entitlement for sale. The Australian Government is purchasing a portfolio of entitlements which best meet the environment's needs. |
Features of water recovery include:
- Water recovery through infrastructure investment and state programs is taken into account
- Substantial progress has already been made in environmental water recovery. Water buybacks will be conducted at a steady, measured pace so that the transition to the SDLs under the Basin Plan is smooth
- The Australian Government pays all fees and charges due on the water entitlements it holds, including annual headworks charges
- The proceeds from water purchases can help irrigators invest in farm upgrades, diversify their operations, retire debt or exit irrigation if they wish.
Replacing irrigation channels with pipelines can reduce water loss through evaporation.
The Swiss cheese effect
The so-called 'Swiss cheese' effect occurs when some irrigators decide to terminate their irrigation delivery rights, potentially creating 'holes' in the service area of an irrigation network if they cease irrigation. The Australian Government has taken a number of actions to reduce the effect by supporting water purchases in connection with decommissioning under-utilised infrastructure in irrigation networks; authorising the imposition of termination fees; and investing in infrastructure delivery system reconfiguration and upgrades.
Environmental works and measures
The Australian Government is providing funding to investigate additional environmental works and measures that could deliver water to the environment more efficiently. Where environmental objectives can be achieved using less water, the works and measures have the potential to offset the sustainable diversion limits under the Basin Plan, reducing the amount of water needed to be recovered from consumptive users. Examples of environmental works and measures include removing barriers that impede flows, weirs, more efficient storages, regulators, levees, increasing dam outlet capacity, pumps and purchasing flood easements.
Community decision-making
Local groups will be invited to develop and submit proposals on environmental works and measures. They will also be involved in evaluating works and measures, providing advice and managing and coordinating local watering needs. Details of how best to involve local communities in identifying more environmental works and measures are being developed by the state governments.
Communities know their patch and are often in the best position to generate innovative proposals for managing water in their local area.
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