Australia needs a revitalised National Water Initiative

Australia needs a revitalised National Water Initiative

Australian governments must renew and update the National Water Initiative (NWI) agreement to navigate water security challenges driven by climate change, growing and changing demand for water and the transition to net zero emissions, according to the final report of the Productivity Commission's review of the agreement.

The 2004 NWI sets out principles for water management, covering everything from access rights to pricing principles and investment in infrastructure. The Australian, state and territory governments are currently negotiating to renew the NWI, with a new agreement expected later in 2024.

"Water is essential to the wellbeing of all Australian communities, the environment, and the economy. It is in everyone's interests that water is well managed. 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," said Commissioner Joanne Chong.

"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," said Commissioner Chong.

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

"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," Commissioner Chong said.

A 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," said Commissioner Chong.

The report emphasises that a renewed NWI must build on the 2004 agreement.

"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. That a Ministerial Council plans to meet this week for the first time in 11 years to talk about national water reform is a hopeful sign that it is again a priority for Australian Governments," said Commissioner Chong.

Read the report at www.pc.gov.au.

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