National water reform 2020

Inquiry report

Released 02 / 09 / 2021

This report was sent to Government on 28 May 2021 and publicly released on 2 September 2021.

The report assesses the progress of the Australian, State and Territory governments since 2017 towards achieving the objectives and outcomes of the National Water Initiative (NWI). It also provides practical advice to Australian governments on future directions for national water reform through renewal of the NWI.

Download the report

Findings, recommendations and renewal advice

Assessment report

Supporting papers

Supporting papers are summarised in the main inquiry report.

All supporting papers combined (PDF - 6118 Kb)

Contents

Preliminaries: Cover, Copyright, Letter of transmittal, Contents, Acknowledgments and Abbreviations
Executive summary
- Reform advice on NWI renewal
Chapter 1 About the inquiry
- 1.1 Context for the inquiry
- 1.2 The Commission’s task
- 1.3 The Commission’s approach
- 1.4 Conduct of the inquiry
Chapter 2 Progress against the NWI and the case for continuing reform
- 2.1 Overview of the NWI reform agenda
- 2.2 Summary of progress against the agreement
- 2.3 Reforms have contributed to sizeable benefits
- 2.4 But the case for further reform is compelling
- 2.5 In summary: the case for renewed reform effort is convincing
Chapter 3 NWI renewal: a refreshed intent
- 3.1 Why a national approach to water reform?
- 3.2 A modernised goal
- 3.3 Modernised overarching objectives
- 3.4 Modernised detailed objectives
- 3.5 Foundations set in overarching principles
- 3.6 Key elements
- 3.7 Updated acknowledgement of other initiatives
Chapter 4 Building in good governance for a renewed NWI
- 4.1 The NWI’s governance architecture has been significantly eroded
- 4.2 Characteristics of leading practice governance
- 4.3 A modernised agreement structure
- 4.4 Organisational ‘best-fit’ for governance functions
- 4.5 Incentivising reform
- 4.6 Greater transparency in NWI governance
Chapter 5 Water resource management — a fit-for-purpose framework
Chapter 6 Water entitlements and planning
- 6.1 Room for improvement in entitlements regimes
- 6.2 Improvement in water planning
Chapter 7 Water trading and markets
- 7.1 Trading has delivered significant net benefits
- 7.2 More detailed principles for stronger markets
- 7.3 Creating the foundations for leading practice
Chapter 8 Environmental management
- 8.1 Progress on providing water for the environment
- 8.2 Requirements for achieving agreed outcomes in all systems
- 8.3 Additional requirements in systems with held water
- 8.4 Water system managers should use their best endeavours to achieve agreed outcomes
- 8.5 Effective monitoring, evaluation and reporting
Chapter 9 Securing Aboriginal and Torres Strait Islander people’s interests in water
- 9.1 Understanding of Traditional Owners’ aspirations has evolved since the NWI was drafted
- 9.2 A new policy element developed through co-design
- 9.3 Achieving cultural outcomes through enhancing the influence of Traditional Owners in water management
- 9.4 Enabling access to water for economic use
Chapter 10 Ensuring the integrity of water resource management
- 10.1 Confidence in water management has been tested
- 10.2 A framework for trusted and credible water resource management
- 10.3 Ensuring integrity in water use
- 10.4 Ensuring the integrity of water system management
- 10.5 Building understanding of the broader water context
Chapter 11 Provision of water services
- 11.1 Background on water service provision
- 11.2 Pricing and institutional arrangements in a renewed NWI
Chapter 12 Urban water services
- 12.1 Australia has seen significant urban water reform
- 12.2 Much has been achieved but the case for further action is clear
- 12.3 NWI renewal is an opportunity to embed the foundations of success
- 12.4 Best-practice system planning
- 12.5 Pricing and service outcomes — another focus
- 12.6 Additional tailored advice for regional and remote urban water services
Chapter 13 Water reform in rural Australia
- 13.1 NWI-consistent reforms have delivered large benefits to rural users
- 13.2 Reforms have also prepared water users to address future challenges
- 13.3 A renewed NWI would lock in past benefits and enable adaptation
- 13.4 Community adjustment to lower water availability
Chapter 14 Government investment in major water infrastructure
- 14.1 The NWI targets economically viable and ecologically sustainable infrastructure
- 14.2 Some past government commitments raise red flags
- 14.3 NWI renewal can contribute to improved decision making
Chapter 15 Community engagement
- 15.1 The NWI has facilitated engagement but an update is needed
- 15.2 Embedding effective practice through a renewed NWI
Chapter 16 Knowledge, capacity and capability building
- 16.1 Knowledge generation needs attention
- 16.2 Use of knowledge also needs to be optimised
Appendix A Terms of Reference
Appendix B Glossary
Appendix C Inquiry conduct and participants
References