NATIONAL IRRIGATORS’ COUNCIL

MOVING FORWARDS: OUR REVIEW OF THE MURRAY DARLING BASIN PLAN

Advocating for the Australian irrigated agriculture industry

Moving Forwards: A Review of the Murray Darling Basin Plan by National Irrigators Council

Overview

The Murray-Darling Basin Plan forms part of a multi-decade water reform journey, and exists amongst a broader architecture of water management instruments at State and Federal levels.   It is due for Review in 2026 by the Murray Darling Basin Authority.

"Moving Forwards: Our review of the Murray Darling Basin Plan" by NIC,  is a series of comprehensive papers based on the key themes identified by the MDBA in their Early Insights Paper, as well as a chapter on Community and Agriculture which was overlooked in the Early Insights.

These papers, together with material from the MDBA and other stakeholders, should help start conversation on how to enable improvements in the Basin Plan to support strong and vibrant communities and enhance environmental outcomes with the water already held for environmental purposes. 

At the core, our review is based on a new, systems-thinking, framework developed by our team - the 'Triple Crown Water Reform Framework'. The framework is described in detail in our published article [soon to be published] and further within our Basin Plan Review - Regulatory Design chapter. Our review also importantly considers the following key questions:

  • What progress have we made towards the original purpose of the Plan (‘overallocation’)
  • What are now the biggest challenges in the Basin?
  • What mechanisms are now needed to address these?

Key Review Themes

Regulatory Design

Challenges with the current design and recommendations for improvement.

Sustainable Water Limits

The core objective of the Basin Plan and how they are being implemented..

Climate Change

Recognising existing mechanisms and levers.

Environment

Achievements and challenges in environmental water, and whats next to enhance outcomes.

Community and Agriculture

Assessing the opportunity cost of current approaches to achieving environmental outcomes. 

Contemporary Issues

First Nations, managing the northern Basin and water quality.


In our view, a key shortcoming of the Plan was the assumptions that equated returning water volumes with ecological outcomes directly, with a lack of recognition or adoption of the other mechanisms required,  and a lack of flexibility to adopt innovations to avoid irreversible community and industry impacts, and achieve the same or better outcomes. Unpacking this assumption will provide essential pathways forward for the Basin.

Furthermore, NIC was concerned that the Plan will be reviewed against objectives it was never intended to achieve, or cannot achieve, on its own – given the broad spectrum of expectations which have developed over time about the Plan. This risks under-recognising the significant changes which have occurred from the Plan, as well as not properly understanding the nature of contemporary issues and how to address them.

In summary of our findings:

NIC is of the position that the Basin Plan has achieved its core objective – to establish sustainable levels of water use – achieved through substantial reductions in water diversions as a result of water recovery (and other means).
The achievement of this 'core objective' has come at a cost to irrigation-water dependant communities and industries, with some impacted more than others.  Whilst socio-economic impacts are variable around the Basin, we are concerned that there are communities and industries more vulnerable to further changes in water availability than before the Plan. 
It has also become evident that expectations on the Basin Plan have grown over time, leading to a ‘scope-creep’ in what people perceive the Basin Plan to be solving, and able to solve.  This does not mean the Basin Plan has failed, but an opportunity to move forward.
This opens up the opportunity to look beyond the initial driver for the Basin Plan, and allows the next chapter for the Basin to turn to the contemporary issues, focused on optimal management of the resource within the water sharing framework, and enhancing those outcomes with integrated management regimes.
Doing this will require turning the chapter from a ‘plan of water recovery’ to a ‘plan of management’ for the Basin, drawing on a wider array of levers (i.e. complementary measures).

Recommendation

NIC Recommends the Triple Crown of Water Reform Framework be adopted to structure the Basin Plan Review, and future water management in the Basin.

Recommendation

NIC Recommend that the future focus of the Basin Plan should be on Crowns 2 and 3 - Improving ecological and other outcomes from the environmental water already available.



Murray Darling Basin Plan Context

Overview of progress to date:

  • Basin Plan commenced 2012:
    • Flexibility built into the Plan - Sustainable Diversion Limit Adjustment Mechanism (SDLAM) in 2017 in the Southern Basin, and Northern Toolkit in 2018 in the Northern Basin
    • Amendments with the Restoring our Rivers Act in 2023.
  • Over 2,132.7 GL/y has been recovered from consumptive users for the environment (exceeding the 2,075 GL/y total);
  • SDLs came into effect in 2019:
    • The most recent compliance reports show full compliance with SDLs;
  • Efficiency entitlements and/or additional HEW has exceeded the 62 GL/y required to allow the full effect of the 605 GL/y supply contribution to SDL (but up to 450 GL still possible).
  • SDLAM supply and constraints project implementation has been slow and problematic. 

Key steps remaining:

  • Full implementation of SDLAM supply and constraints projects by 31 December 2026;
  • Remaining local recovery targets (6.7 GL) by 31 December 2026;
  • Four remaining WRPs in NSW to be accredited which were due in 2019;
  • All reasonable steps to recover an additional 450 GL/y of environmental water by December 2027.
  • A discussion paper from the MDBA is due in early 2026, prior to formal consultation which will help shape the review and recommendations to the Federal Water Minister by late 2026.

See More on our Murray Darling Basin Plan page.


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Chapter Summaries and Theme Findings

Chapter 1 - Regulatory Design and The Basin Plan

Chapter 1 - Regulatory Design Chapter 1 - Regulatory Design

Findings

  • The Basin Plan is primarily about water-sharing, to address the key issue of over-allocation, following the Millenium Drought.
  • Expectations of the Plan have grown over time, and the outcomes sought through rebalancing water sharing arrangements, extend beyond just ‘overallocation’ on its own, to a broader suite of environmental and other objectives.  
  • The Basin Plan has achieved what it set out to do – to set, and reduce diversions to, Sustainable Diversion Limits. However, a lack of clarity about its purpose and measures of success, and underlying policy inflexibility, means that this is often not recognised.
  •  Stakeholder and community values have shifted towards needing broader social, economic and environmental outcomes from a more integrated land and water management system, than currently designed.

The evidence

A new framework - The Triple Crown of Water Reform Framework - is a multi-stage Framework, which recognises that the broader outcomes desired to be achieved by addressing overallocation in a river system, extend beyond rebalancing water quantities itself, to ecological and other outcomes and values. This extension requires not only sustainable water shares, but the optimal use and management of those shares, and the furthering of outcomes to include direct targeted initiatives.

What it means for the next Basin Plan

The Triple Crown of Water Reform Framework provides a valuable tool to structure the Basin Plan Review, and future water management in the MDB.

The Basin Plan Review, and any subsequent versions of the Plan, should see progression to Crowns 2 and 3 as the next chapter of reform, celebrating the successes of Crown 1.

Chapter 2 - Sustainable Water limits

Chapter 2 - Sustainable Water Limits Chapter 2 - Sustainable Water Limits

Findings

  • There has been a significant decline in diversions in the Basin. Diversions in the Basin have, at most times, halved from pre-Plan levels.
  • Diversions in the Basin are now 28% of inflows, well within global standards.

  • Sustainable Diversion Limits (SDLs) have been established, and came into effect in 2019.  Full compliance with SDLs* has been achieved.
  •  Water recovery to bridge the gap from the BDL to the SDL is largely complete (shared water recovery complete, local water recovery nearly complete).
  • Combined with pre-Plan water recovery programs, there has been a transfer of nearly one-third of consumptive water entitlements to the environment.

The data


What this means for the Basin Plan

The Basin Plan has done its job in terms of addressing ‘over-allocation’, which was the core issue at the time of it’s conception (during the Millenium Drought). In fact, combined with pre-Plan water recovery programs, there has been a transfer of nearly one-third of consumptive water entitlements to the environment. This means we can move forward with the limits we have, and onto to the next chapter of water management, beyond just water sharing and rebalancing, to look at how each share of water is managed.

Chapter 3 - Climate Change

Chapter 3 - Climate Change Chapter 3 - Climate Change

Findings

  • Climate change is factored into water sharing. This is primarily via states’ water sharing policies and practices such as via the making of water allocations, and in setting extraction limits.
  • Data shows that consumptive water users receive less water during droughts (as well as HEW), with water allocations returning as water availability increases.

The data

The below shows general security water allocations in four regulated water sources, varying over time in response to climatic conditions (note: allocations in blue, carryover in orange). This is (a) NSW Murray; (b) Gwydir; (c) Murrumbidgee; (d) Macquarie. 

What this means for the Basin Plan

It will be integral that any review of the Basin Plan recognises the ways in which climate change is already factored into water management, as the starting point for the review. This is not to say ‘everything will be fine’, rather, to ensure an accurate information base of possible future scenarios (not just of water availability, but how this trickles down through water sharing frameworks to produce different outcomes for different users). NIC is concerned by a view that the Basin Plan and water management do not consider climate change – this is not correct.

Managing for climate change is not about ensuring a set of benchmark environmental outcomes in the Basin continue to be achieved. All users must share risks and opportunities. NIC agrees with the questions in the Early Insights Paper that:

“can these [achievement of Basin Plan environmental outcomes] be better mitigated and responded to, or will some desired environmental outcomes not be sustainable under climate change?”

Climate change planning must also focus on water security for critical human needs (including First Nations), and water security for agriculture. Even under the most extreme climate scenarios, it will be important to maintain a viable agricultural sector. Under current management arrangements, where water allocations to consumptive users are lowest-priority, the irrigated agricultural sector will be hit first and hardest.

NIC recommends that the review includes modelling of what water allocations for agriculture will look like under these various climate scenarios (including availability and affordability), and what this will mean for the industry. This will be important to: (i) understand the status quo; and (ii) determine if interventions (of some form) are necessary to improve water security for agriculture, to maintain production into the future. Indeed the water security limitations on Australian agriculture are a vital piece of information for Governments to ensure domestic food security and food sovereignty, as well as to maintain a strong export base.

In our view, focus must be on securing critical needs during droughts (including critical environmental needs, but foremost, critical human needs such as town water supplies). In extreme events, critical human needs are the highest priority. Integral to this, is recognizing that securing these high-priority needs cannot occur with the buyback of more licenses which are lower priority than those needs already. This will require a more comprehensive look at a range of solutions, including infrastructure (storage dams, weirs, pipelines, tanks), secondary supply sources, water recycling, desalination, or water-carting as a last resort. This will require working with local councils, who are primarily responsible for town water supply.

When referring to ‘plausible climate futures’, this must include both wetter and drier periods, as well as acknowledge the uncertainty in projections. There is a tendency for focus to only be on the drier.

Chapter 4 - Environment

Chapter 4 - Environment Chapter 4 - Environment

Findings

  • The Basin Plan has led to improved environmental outcomes.
  • To realise the full environmental outcomes desired, more than ‘just adding water’ is required . This means an investment in complementary measures – and moving from just water sharing, to integrated land and water management.

The data

  • The 2025 Basin Plan Evaluation and Sustainable Rivers Audit (said to be “the most comprehensive assessment of Basin Plan implementation and outcomes to date”) showed a number of very positive environmental outcomes where water for the environment has been delivered.
  • There is a growing evidence-base that moving beyond “just add water” is needed. The Evaluation said:
 “Water for the environment is essential, but on its own is likely not sufficient. Factors such as water quality, riparian and floodplain management, pest control, instream habitat, river operations, constraints and works, and environmental water portfolio management are also crucial to achieve environmental outcomes.”

What this means for the Basin Plan

  • With Crown 1 of the Triple Crown of Water Reform Framework completed (Flows), the next steps remain for Crowns 2 and 3 (functions and further).
  • Any Basin Plan 2.0 should turn focus to investing in a strategic, coordinated and integrated package of complementary measures.
  • There is an urgent need for prioritisation in Basin environmental investment – asking the question of what does the environment need most, and how can this be achieved in the most effective, efficient, and value-for-money way.
  • To improve transparency on how environmental water is managed and measured, a program to benchmark measurement and reporting of environmental water should also inform the Basin Plan review. This information will be important to understand opportunity to enhance outcomes but also, manage reliability and delivery risks to all users.


Chapter 5 Contemporary Issues

Chapter 5 - Contemporary Issues  Chapter 5 - Contemporary Issues 

This Chapter looks at a range of contemporary and/or emerging issues for the Basin, including:
a) First-Nation's outcomes;
b) Managing the northern Basin; and
c) Water quality.

See the full chapter for specific findings and recommendations on each. 

Where we landed

What would a Triple Crown approach to water management look like in the Basin?



Crown 1: water-sharing

Full compliance with SDLs across the Basin

Status: Achieved (ongoing monitoring)




Crown 2: optimisation within water-sharing arrangements

  • Implementation of community-supported Constraints Measure projects, to enable optimal environmental water delivery, improving connectivity to floodplains
  • Strengthening partnerships with IIOs and private landholders to enhance environmental water delivery
  • Incorporating Indigenous knowledge into water planning to enhance cultural outcomes

Status: Partial / in progress (ongoing implementation of constraints and supply projects)


Crown 3: complementing water-sharing arrangements

  • Package of strategic and coordinate complementary measures, including: addressing invasive species (such as carp), barriers to fish passageways, cold water pollution, installing fish screens, native fish restocking, and riparian land restoration
  • Investments in town water supply infrastructure, to enhance resilience to climate change for critical needs during extreme events  
  • First Nations custodian / ranger programs, such as the billabong project

Status: Limited / ad hoc (need for significant investment)


Ultimately, the Basin Plan has achieved what it set out to do – to reduce diversions to sustainable diversion limits.  This has come at a cost to irrigation-water dependant communities and industry, with some more impacted than others. 

It has become evident that expectations on the Basin Plan have grown over time, leading to a ‘scope-creep’ in what people perceive the Basin Plan to be solving, and able to solve. 

NIC recommend the Triple Crown of Water Reform Framework be adopted to structure the Basin Plan Review, and future water management in the Basin.

The Basin Plan was never intended to be a ‘fix all’, and the levers available through the Basin Plan cannot achieve many of these other expectations alone. This is not a sign of failure of the Plan, rather that it is time to turn to the next stage or chapter – to shift from ‘crown 1 – flow’ (or water sharing), to focus more on ‘crown 2 – function’ (optimization of management), and ‘crown 3 – further’ (complementary measures).  The proper implementation of all three Crowns will lead to greater integration and potential for win-win outcomes acrross all key themes.  

This next chapter for the Basin must recognise the paradigm shift to a new ‘contemporised best-practice paradigms’ of water management that will be more about a 'plan of management for the Basin' - based on partnerships, cooperation, co-beneficial outcomes, and practical integration of water users – rather than the current paradigm based on siloed water users, conflict, and managing trade-offs that is focused on water recovery alone. This offers the best hope for both improving environmental outcomes, rebuilding community confidence, ensuring vibrant irrigation-water-dependant communities, and actually targeting what are now the biggest contemporary issues in the Basin.

NIC Recommend that the future focus of the Basin Plan should be on Crowns 2 and 3 - Improving ecological and other outcomes from the environmental water already available:
  • Invest in a strategic and coordinated package of actions known as complementary measures across the Basin (e.g. invasive species control, fish passageway, fish screening, cold water pollution measures, riparian land management, etc).
  • Invest in supporting landholders, industry and Irrigation Infrastructure Operators to undertake land and water management partnerships, as extensions of the current exemplars of success.
  • Foster collaboration with First-Nations in the above, such as through Caring for Country programs or projects like the Billabong Project.

Full Chapters

Regulatory Design

Chapter 1

Sustainable Water Limits

Chapter 2

Climate Change

Chapter 3

Environment

Chapter 4

 Community and Agriculture

Chapter 5

Contemporary Issues

Chapter 5

Other Key Documents

Moving Forwards: A Full Report

The combined series of papers including an Introduction and Recommendations on the NIC's Murrray Darling Basin Plan Review

Breaking the Hydro Illogical Cycle

A journal article on a new way of thinking in the Murray Darling Basin using the 'Triple Crown Water Reform Framework'

Socio Economic Analysis of the Basin Plan

A summary of socio economic analyses including updated local community case studies on the NIC webpage.

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