Water reform funding in the Murray–Darling Basin

Australian governments have committed over $13 billion for projects in the Murray–Darling Basin since 2007.

The Murray–Darling Basin reforms aim to restore rivers and wetlands to a healthier and sustainable level. All while supporting strong regional communities and sustainable food production.

The Australian Government has committed $13,293 million across these 4 broad areas in water reform:

  • Infrastructure – physical upgrades to water infrastructure – $7,537 million
  • Purchase – purchase of water entitlements – $2,837 million
  • Environmental – projects to support our environment – $1,020 million
  • Community, industry and other – programs to help communities and industry. As well as other activities to implement water reform – $1,899 million.

The water reform programs are grouped across the areas of activity funded. These programs often contribute to multiple outcomes in the Basin.

See the funding table of programs and projects as of 30 June 2023. This includes total funds, expenditure and unspent budget.

Infrastructure

Water infrastructure is critical to a healthy and productive Basin. Investment in water infrastructure results in more efficient use and delivery of water where and when it is needed. This includes water for the environment.

Key current infrastructure works include:

Examples of infrastructure programs follow.

Sustainable Rural Water Use and Infrastructure Program (SRWUIP)

2007–08 to 2024–25

SRWUIP invests in rural water use, management and efficiency. This includes improved water knowledge and market reform, and water purchase for the environment.

SRWUIP is the key mechanism to ‘bridge the gap’ to the sustainable diversion limits. These limits are set under the Basin Plan. SRWUIP has 3 main components:

  • irrigation infrastructure projects
  • water purchase measures
  • supply measures.

Most SRWUIP infrastructure funds are for:

  • improving the operation of off-farm delivery systems
  • helping irrigators improve on-farm water use efficiency.

The water savings generated from these projects are shared between the:

  • Basin governments for environmental use
  • irrigators for consumptive use.

SRWUIP mostly funds infrastructure measure. It also funds programs for purchase, environmental, and community, industry and other outcomes.

Water for the Environment Special Account (WESA)

2013–14 to 2023­–24

WESA was established under the Water Act 2007.  It’s used to enhance the environmental outcomes that can be achieved by the Basin Plan.

The Intergovernmental Agreement on Implementing Water Reform in the Murray–Darling Basin provides funding. $1.575 billion of the WESA funding is allocated to recovering 450 GL of water for the environment through efficiency measures.

The current efficiency measures program is the $1.54 billion Off-farm Efficiency Program. Funded projects will provide long-term benefits to:

  • irrigators by improving infrastructure efficiency
  • communities by increasing water security and creating jobs. 

A further $200 million is allocated to ease or remove constraints to deliver environmental water. Constraints can include:

  • physical restrictions like low-lying bridges or crossings, or
  • operational restrictions like river rules or operating practices.

Purchase

Since 2008 consecutive Australian governments have purchased water for the environment. This helps bridge the gap to the sustainable diversion limits in the Murray–Darling Basin Plan 2012. These limits identify how much water can be used in the Basin by towns and communities, farmers and industries. All while keeping rivers and the environment healthy.

Between 2008 and 2015, we held about 30 open tenders to purchase surface water entitlements in the Basin.

Initial water purchase activity was completed through the Restoring the Balance in the Basin Program. This program ran between 2007–08 and 2013–14. Since 2014–15, SRWUIP has been the main program for bridging the gap.

SRWUIP

2007–08 to 2024–25

While most of SRWUIP funding supports infrastructure projects, it also funds water purchase.

The government purchases water entitlements in a selective and targeted manner. The focus is on specific water products or locations. Purchasing may be carried out using a variety of methods. This includes open tender and limited tender approaches.

We have not included figures for active procurement processes for commercial reasons.

Environment

The environment of the Murray–Darling Basin is unique. We must protect and improve the health and ecological condition of rivers and wetlands in the Basin. It’s home to 67 Ramsar Convention-listed wetlands.

Our funded programs:

  • help rivers flow
  • keep native plants healthy
  • support feeding and breeding of native animals, birds, fish and frogs.

This is critical to keeping rivers healthy, so they can continue to sustain healthy communities.

Key current environmental works include:

Examples of environmental programs follow.

SRWUIP  

2007–08 to 2024–25

SRWUIP invests in rural water use, management and efficiency. This includes improved water knowledge and market reform, and water purchase for the environment.

SRWUIP funding has been committed to environmental projects. These include:

Support for the environment in the South Australian Riverland

2013–14 to 2021–22

The government has funded programs to promote river health and habitats on the Lower Murray in South Australia. These include the:

  • South Australian Riverland Floodplains Integrated Infrastructure Program
  • Sustaining Riverland Environments.

Community, industry and other activities

Communities, farmers and governments in the Basin are using water more wisely. They’re adopting world-class irrigation practices and technology and engaging with government on water reform. This includes undertaking compliance activities to enforce the Basin Plan.

Current initiatives in this area include:

  • Aboriginal Water Entitlements Program
  • Implementing Water Reform in the Murray–Darling Basin
  • funding for compliance and science, and water market reform.

Funding for this area is smaller than other areas. However, industry and communities have also benefited from investment in infrastructure to increase profitability and local investment in jobs and resources.

Community

The Basin Plan supports growth in the recreation and tourism industries, among other community benefits, generated by healthy rivers.

Community benefits include:

  • improved capacity for river-based recreation
  • improvement in the quality and security of town water supplies
  • enhanced resilience of communities to manage current and future economic challenges.

Examples of programs that have supported communities follow.

SRWUIP

2007–08 to 2024–25

SRWUIP invests in rural water use, management and efficiency. This includes improved water knowledge and market reform, and water purchase for the environment.

SRWUIP funds community-focused programs, such as the:

Murray–Darling Basin Regional Economic Diversification Program

2012–13 to 2016–17

This program was managed through the infrastructure portfolio. It provided $72.65 million to:

  • help communities increase economic diversification
  • adjust to a water-constrained environment.

Find out more about this program.

Aboriginal Water Entitlements Program

2023–24

The Aboriginal Water Entitlements Program makes $40 million available to buy water entitlements for the benefit of First Nations Peoples across the Murray–Darling Basin. We will deliver the program in partnership with Indigenous people in the Basin.

Water Research Goyder Institute

2022–23 to 2025–26

Funding will support the Coorong, Lower Lakes and Murray Mouth. It will fund improved scientific knowledge to:

  • inform management of the internationally significant region
  • support community wellbeing
  • enhance long-term prosperity.

Find out more about the Water Research Goyder Institute.

Industry

Farmers in the Basin have made significant progress in using water more wisely. This includes adopting world-class irrigation practices and technology.

Examples of industry programs follow.

Water for Fodder

2019–20 to 2020–21

Water was produced from the Adelaide Desalination Plant and an equivalent amount released upstream from the River Murray.

Farmers in the southern connected Murray–Darling Basin were able to apply to purchase South Australian River Murray water at a discounted rate. The water had to be used to grow fodder and pasture. This helped farmers to maintain their breeding stock during the drought.

Find out more about the Water for Fodder program.

Smarter Irrigation for Profit

2015–16 to 2017–18

Aimed to improve the profit of cotton, dairy, rice and sugar irrigators. The project provided growers improved understanding of the:

  • implications for capital investment, management and the resource requirements (water, energy and labour) for different irrigation systems
  • adoption of automation technology and different approaches to farming systems.

Participating farmers could achieve a 10–20% improvement in water productivity through adoption of new and existing precision irrigation technologies. The project also identified significant energy savings, which also enhanced profitability.

Other funding

The government has also committed to other initiatives that support or are directly linked to the Basin Plan. These include:

  • funding to other agencies to support their implementation of programs
  • funding to states to engage them in water reform in the Murray–Darling Basin and compliance activities.

Implementing water reform in the Murray–Darling Basin

2012–13 to 2023–24

The program provides funds to states to implement water reform in the Murray–Darling Basin. See the detailed assessments of Basin state performance.

Commonwealth contribution under the Murray–Darling Basin Agreement

2012–13 to 2016–17. This has been followed by ongoing funding.

These funds contribute to the joint program of works with Basin states. It’s set out in the Murray–Darling Basin Agreement, which forms part of the Water Act 2007.

SRWUIP

2007–08 to 2024–25

SRWUIP invests in rural water use, management and efficiency, including improved water knowledge and market reform, and water purchase for the environment.

In its long history, SRWUIP has funded several other commitments with various organisations. This includes the current commitments for the:

  • Northern Murray–Darling Basin Metering Program
  • Water Management Solutions Program in South Australia to deliver the mywater online water management system and customer portal.

Improving Compliance in the Murray–Darling Basin

2022–23 to 2026–27

We will work to improve trust in managing water resources through improvements to the metering and monitoring of water use and increasing regulatory compliance. $22.6 million will be delivered to states to improve the:

  • automated measurement of water use
  • subsequent transmission of the data to regulators.

This will provide more timely and accurate data on water use. In turn, it will increase public confidence in the use of water across the Basin and compliance with sustainable limits.