National Water Policy inquiry: water security and First Nations water management tagged for reform

Climate change is making water security more challenging in Australia, an issue that needs urgent attention according to the National Water Policy inquiry, with First Nations water management also in need of maintained focus and policy direction.

Last month, the Productivity Commission released the final report on its inquiry into reform of the 2004 National Water Initiative (NWI), Australia’s roadmap for national water management, outlining key recommendations for improving water security and First Nations water management.

The report sets out the Commission’s assessment of jurisdictions’ progress towards meeting the outcomes and objectives of the NWI, highlighting the need for a renewed and updated plan to help governments navigate growing water security challenges.

Commissioner Joanne Chong said water is essential to the wellbeing of all Australian communities, the environment and the economy, with appropriate water policy reform and management something that is in everybody’s interest.

“The National Water Initiative has served Australia well for the past 20 years and it is time to build on these strong foundations to meet current and future challenges,” she said.

“Climate change is making rainfall harder to predict and is leading to more frequent extreme weather events. The new agreement currently being negotiated by Australian governments needs to protect water security in the face of these challenges.”

The current NWI objectives focus on water resource management, but there are also challenges with providing water services in both cities and regional areas, Chong said.

“Some regional and remote areas still lack access to safe drinking water. In a renewed National Water Initiative, State and Territory governments must commit to ensuring all Australians have access to a basic level of service for safe and reliable drinking water,” she said.

Focus on water security

The inquiry report outlines that Australian federal, state and territory governments must renew and update the NWI agreement to navigate water security challenges driven by climate change, growing and changing demand for water and the transition to net zero emissions.

A key recommendation from the Productivity Commission is that planning for national water security needs to take a much greater focus within the renewed NWI as climate variability continues to increase.

The recommendation is for governments to plan for water quality threats, as well as water availability issues triggered by floods, storms, bushfires, sea-level rise and drought.

It is also recommended that governments should collectively model and plan for the water demands of the transition to net zero emissions, with all options remaining on the table to ensure water security is achieved at least cost to the Australian community.

On 28 June, Australia’s Water Ministers met for the first time in a decade to renew their commitment to working together to secure water resources, with Ministers recognising that the original agreement does not reflect new and emerging challenges to water security.

Federal Minister for Water Tanya Plibersek said Australia’s Water Ministers are progressing an updated National Water Agreement to better safeguard water resources from the impacts of drought and climate change.

“Australia is the driest inhabited continent on earth, and it is encouraging to see that Australia’s Water Ministers are unified in their goal to secure our scarce water resources,” she said.

“States and territories must continue to work together to agree on a meaningful, balanced and transparent path forward.

“We are already working collaboratively with jurisdictions on world-leading initiatives to better manage our water, including the Murray-Darling Basin – our most critical river system. I look forward to continuing to work with my ministerial colleagues on Australian water reform.”

First Nations water management

Another major recommendation from the Productivity Commission is that the renewed NWI should also better support the unique role of water in the lives and livelihoods of Aboriginal and Torres Strait Islander people.

“The NWI needs to better recognise Aboriginal and Torres Strait Islander people’s reverence and ongoing responsibility for water and support their participation in water management,” Chong said.

The Productivity Commission outlines that the renewed NWI should recognise First Nations peoples’ reverence and cultural responsibility for water, as well as the continued involvement and participation of First Nations peoples in water management.

Furthermore, all governments should ensure water management commitments align with the National Agreement on Closing the Gap.

Earlier this year, Plibersek outlined the Federal Government’s intention for policy reform to reflect its commitment to engaging and resourcing First Nations water management in the Murray-Darling Basin.

“A renewed National Water Initiative will provide an extra level of confidence for communities that our precious water resources are efficiently managed in the face of climate change,” Plibersek said.

“We are also entrenching an ongoing commitment to First Nations voices in water management, ensuring the needs and aspirations of First Nations communities are integral to water planning in our country.”

The Federal Government has since launched a water ownership program for First Nations peoples in the Murray-Darling Basin, making $100 million available to buy water in the Basin, with First Nations representatives to determine how that money is spent.

Building better

While many of the actions under the 2004 NWI have been completed, the Productivity Commission has found that there is still room for great improvement, particularly under a changing climate.

The Productivity Commission highlighted that Western Australia and the Northern Territory have not implemented statutory perpetual water rights and that fully independent economic regulation of water utilities has not been adopted by all states and territories.

Further, states and territories are in the process of developing action plans to include First Nations peoples in water planning and decision-making processes, but implementation is in early stages and momentum must be maintained.

Chong said the Productivity Commission has emphasised that a renewed NWI should improve and expand on the existing agreement while retaining its foundations.

“The water reform compact between all Australian governments needs committed leadership and better governance practice – one that prepares us for the future by building on the strengths of the old agreement,” she said.

Interested in learning more about the National Water Policy inquiry? Take a look at the full report here.