Reliability of Water Access Entitlements Position Statement

NIC Policy Positions are agreed with Members and prepared in conjunction with our guiding policy principles.

1. Water access entitlements are a property right - any decision that reduces the reliability of water access on an entitlement is an erosion of that property right.

2. The contemporary water management framework, as envisioned by the National Water Initiative (NWI), is underpinned by a water property right framework. Maintaining the integrity and confidence of the water property right framework including water markets, is essential to all entitlement holders (agricultural, environmental, urban and others), and the water management framework overall.

3. Reductions to reliability of water access entitlements must never be used as a water recovery mechanism to permanently reduce the consumptive pool. If changes must occur (for public interest purposes), they must respect the existing water management framework, including:

a. Any variation of the water access entitlement (the property right) requires mutual agreement between the entitlement holder and government (NOTE: as per Clause 32 of the National Water Initiative).

b. Any reduction to the reliability of water access on an entitlement, as a result of changes to government policy, is fully compensable (NOTE: as per Clause 50 of the National Water Initiative). NIC condemns claims by governments that small impacts are immaterial, or non-compensable. This is important for both individual and cumulative impacts.

c. Government must implement the principles for water recovery, which includes consideration of all available options and assessment of socio-economic costs (NOTE: as per Clause 79ii the National Water Initiative). Consideration of all available options must include non-water options (i.e. complementary measures).

4. To respect water property rights, governments must measure and report the reliability of water access entitlements, with all variations accounted for. Full assessment of impacts must be included as essential information for any public consultation where a potential water reliability impact is involved.

Note: it is recognised that specific arrangements vary across Australian jurisdictions. These positions are intended to form general principles.

What are Water Property Rights

The establishment of water entitlements as a property right originates from the unbundling of land and water, where water access was previously considered as part of the property right to land.

The 2004 National Water Initiative (NWI) was the core instrument which facilitated this process.

The essential characteristics of water access entitlements are outlined in the NWI in clauses 31 and 32.

The current water management framework is on based around water property rights. The integrity of water property rights, is thus crucial to the integrity of the broader system operating effectively. The establishment and maintenance of water rights enables:

Resource Management: Water property rights are crucial for the sustainable management of water resources. They help allocate water among competing users, ensuring that water is used efficiently and equitably.
Economic Value: These rights can have significant economic implications. They can be bought, sold, or leased, creating a market for water that can incentivize conservation and efficient use.
Legal Clarity: Clearly defined water property rights provide legal certainty for users, reducing conflicts over water access and usage. This clarity is essential for planning and investment in water-dependent activities.
Environmental Protection: Well-structured water rights systems can incorporate environmental considerations, ensuring that ecosystems receive adequate water flows to maintain their health and resilience. They are also the mechanism which enabled ‘rebalancing’ to occur to address over-extraction, as well as a significant volume of water rights now held by environmental water holders (in addition to river flows).
Adaptation to Change: As climate change and population growth increase pressure on water resources, property rights can facilitate the transfer of water to where it is most needed, allowing for more adaptive management strategies.
Social Equity and Cultural Outcomes: Properly designed water rights systems can help address social equity issues and enable considerations of Cultural outcomes.

Linked Position Statements and Documents

Reliability of Water Access Entitlements

PDF of Position Statement

Guiding Policy Principles

Our four guiding principles and policy development process.

Water Law & Planning

NIC webpage on Water Law & Planning

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