National Water Initiative

The National Water Initiative (NWI)

Water reform at a national level accelerated in 1994. The Council of Australian Governments endorsed a landmark water reform framework to balance allocation of water resources between all uses and improve the health of river systems, reform water pricing and improve service delivery.

By 2003 our understanding of water management and water markets had grown. At the same time the national demand for water had increased significantly. More work was needed to build upon the 1994 reform framework. This led to development of the National Water Initiative.

The NWI is Australia’s blueprint for national water reform, created in 2004 and agreed by all states and territories. This shared commitment by all Australian governments provides a framework and principles to underpin the sustainable management of our water resources. It aims to increase the efficiency of Australia’s water use, provide investment confidence and greater certainty for the environment, and improve water security for rural and urban communities.

Under the NWI, all states and territories committed to:

• prepare water plans with provisions for the environment
• achieve sustainable water use in over-allocated or stressed water systems
• introduce registers of water rights and standards for water accounting
• expand trade in water rights
• improve pricing for water storage and delivery
• better manage urban water demands.

Progress in implementing the National Water Initiative

The Water Act 2007 requires regular assessments to determine the progress of Australian governments towards achieving the objects and outcomes of the NWI. These assessments are currently undertaken every 3 years by the Productivity Commission (PC).

Prior to 2017, the National Water Commission conducted assessments on national water reform every two years. The National Water Commission also prepared national planning report cards in 2011 and 2013 that summarised water planning progress across Australia against an evaluation framework, based on key elements of the NWI.

The PC assessed national water reform progress in 2017. Read the Australian Government response to the inquiry.

The PC’s 2020 inquiry report was published in September 2021. The Australian Government will release a response to the PC’s 2020 inquiry.

The PC’s two inquiries found that through the NWI all Australian governments have made progress in improving the way Australia manages its water resources. However, they also found that the NWI should be renewed and modernised to better account for changes in knowledge and technology and to address emerging challenges such as climate change and population growth. The PC recommended a renewed NWI should focus on:

• strengthening the capacity to deal with climate change and extreme weather events
• increasing Indigenous Australians’ involvement and influence in water resource management
• improving the provision of urban water services
• improving water monitoring, accounting and data
• improving regulatory, governance and management arrangements
• the use of best available information in decision making.

Downloads

If you have difficulty accessing this file, visit web accessibility for assistance.

These documents may not meet Australian Government accessibility guidelines as they have not been prepared by the department

Renewing the National Water Initiative

The Australian Government has committed to work with states and territories to renew the NWI. Renewing the NWI offers the opportunity to better reflect climate change, provide for increased First Nations influence in water resource management, ensure access to safe and secure drinking water and take a strategic approach to groundwater management. The Productivity Commission’s recommendations are being considered by all Australian governments as part of this work through the National Water Reform Committee.

Resources on the NWI

Additional materials for water planners, policy makers and stakeholders were developed to accompany the 2004 NWI and assist jurisdictions to implement elements of the NWI framework in a consistent way:

• NWI Policy guidelines
• NWI Pricing Principles
• National Groundwater Strategic Framework
• Non-Urban Water Metering Framework Guidelines