Evaluating Reform of Australia's Water Policy Framework

Abstract

In the past two decades Australia has shifted from an administrative grants regime for allocating water to a statutory planning regime that shares water between consumptive and environmental use. This was to address problems of overuse of water primarily in the Murray‐Darling Basin. A suite of measures were introduced including institutional reform to set out the roles and responsibilities of those involved in the water industry; commitment to provide cost‐based pricing; trading to allow for transfer of water from low‐value crops to high value uses and water for the environment. The National Water Initiative, 2004 (NWI) is the current blueprint for reform. An independent statutory authority has audited national water reforms finding that measures have been successful in areas such as the introduction of tradable water entitlements. Environmental benefits will take many more years to be gauged, while the effects of climate change have not been consistently reflected in decision‐making. A developmental paradigm continues to dominate policy development for Northern Australia.