John Fargher, Australia Australian Water Resources zBrief overview zHistory zWater resource issues in Australia zCOAG Water Reforms zTradeoffs between biodiversity & economy zA case study - the Murray-Darling Basin yThe Cap yInstitutional arrangements yICM framework zComparisons with South Africa

John Fargher, Australia Water in general zWater problems are emotional zWater issues are political zWater solutions are technical

John Fargher, Australia Triple vision? Balancing social, environmental and economic dimensions of water resource management

John Fargher, Australia Land use in Australia

John Fargher, Australia Brief overview zAustralia is dry - average rainfall 470mm/yr zOnly 12% rainfall runs off to rivers zClimate is highly variable - “where the rivers are dry or 10 feet high” zPopulation in SE, water in NW zMurray-Darling Basin is large ICM trial z14% land area (1 million km 2 ), 70% all water used for irrigation, 40% agricultural GVP zGreat Artesian Basin is world’s largest aquifer z15 million ML groundwater available each year

John Fargher, Australia Australia is dry

John Fargher, Australia Australians use a lot of water

John Fargher, Australia History z Protection of Sydney’s water supply z First major dam & reticulated water supply z Water & Conservation District Act (VIC) z Federation: 6 states each managing water z River Murray Agreement z Snowy Mountains Scheme z Lake Pedder Dam z Blue green algal scare in Darling River z Murray Darling Basin Commission formed z Privatisation of irrigation schemes z COAG water reforms z Introduce Cap on extractions from M-DB

John Fargher, Australia Water resource issues Water Resources zDemand exceeds supply - 26% areas over-allocated z30% groundwater units over-allocated zNatural turbidity zPhosphate pollution zNitrate pollution zAlgal blooms zSalinisation - especially in southern basins zChanged flow regimes zPest fish species Catchment Resources zDevolution of authority zPolitics of water & catchment management zCost of repairing damage zDeclining runoff due to off-stream storage zRising saline water tables zAlien plants & animals zDeclining biodiversity zIncreasing returns from irrigated agriculture

John Fargher, Australia Water quality issues

John Fargher, Australia 1994 COAG Water Reforms zStrategic framework for water industry reform to ensure efficient and sustainable use of water zLinks environmental & economic objectives: yEnvironmental flows yImprove water quality yIntegrated catchment management yPricing water at full cost of resource & services yWater trading within & between basins ySeparate service delivery & regulation zAims for consistent approach nationally

John Fargher, Australia Case study: MDBC zMurray-Darling Basin covers 1 million km 2 z14% Australia, 70% irrigation, 40% Ag. GVP zMurray-Darling Basin Commission formed 1985 z6 governments in partnership with community zLarge integrated catchment management trial zDifferent instruments for change: yICM Statement - goals, values & principles ySalinity Strategy - strategic investigations & actions yBasin Sustainability Program - $ for implementation yLocal Action Planning groups - participation zRegulating flows, supervising inter-state trade

John Fargher, Australia Water use trends:

John Fargher, Australia The Cap z moratorium on growth in water diversions z permanent cap on water diversions zDemand for water continuing to grow fast yPrice of permanent water entitlement increased from A$400 to A$1200 per ML between 1995 and 2002 yVolume traded increasing at 30% per year yGrowing market for leased water zPolitically difficult - tradeoffs & compromise yQueensland & NSW considering pulling out zGood example of integrated management of economic, social & environmental issues

John Fargher, Australia Tradeoff: value & volume

John Fargher, Australia MDBC Institutions

John Fargher, Australia The ICM Framework zGoal & vision for healthy rivers, innovative and sustainable industries and healthy communities zManagement of social, economic & social assets zFramework for hard choices - tradeoffs y40% reduction in irrigation to protect endangered fish yIncrease cost of water to include “resource rent” yValue ecosystem services yChange flow regimes to protect wetlands yReduce salinising activities to protect ecosystems zIntroduce end-of-valley targets zPenalise catchments that don’t meet targets zDevolve responsibility & resources to community zIncrease collaboration between states & agencies

John Fargher, Australia Tradeoff: biodiversity & economy

John Fargher, Australia Comparisons with SA zSimilar tradeoffs between environment & economy yover allocation in some basins ypolitical imperative for regional economic development ygrowing voice for the environment from urban elites zSocial dimension in SA includes equity issues zNational policy setting increases consistency zWater and land institutions remain separated - IWRM rather than ICM zInternational dimensions & inter-basin transfers zNWA structure similar to Australian Acts ysustainable use & management of water resources ypublic participation in water resource management ybalance between economy, ecology & community

John Fargher, Australia What is sustainable use? zHow should water be used? zWhere should water be used? zHow much should water cost? zWho decides the tradeoff between water for the environment and water for development? zWho has the right to use water? zHow can rivers, wetlands and groundwater be saved or restored? zAre there multiple use strategies to meet both environmental and economic needs?

John Fargher, Australia Resources zwww.mdbc.gov.au zwww.nlwra.gov.au zwww.csiro.org.au/lw zwww.lwa.gov.au zwww.wri.org zwww.worldbank.org/water zwww.wrc.gov.za zwww.dwaf.gov.za