The Murray-Darling Basin Plan, established in 2012 with bipartisan support, continues to face scrutiny as the government considers new water buybacks to address environmental and community needs. The plan includes recovering 450 gigalitres (GL) of water for the environment. It prescribes how to share that limited water between farmers, communities, and the ecosystem. Recent events have once again raised questions about the sustainability and future stewardship of this critical resource.
In 2018, amendments to the original plan halted voluntary purchases of water rights due to concerns regarding their social and economic impacts on regional communities. As the basin plan approaches a major review scheduled for 2026, stakeholders are apprehensive about potential changes to sustainable diversion limits and the increased emphasis on climate change adaptation and the involvement of First Nations communities.
Government’s Renewed Focus on Water Recovery
Yet in July, Environment Minister Murray Watt acknowledged the severe damage being done to the basin’s environment. He stated that it remains “significantly challenged due to over-allocation of water, climate change, habitat loss, invasive species and pollution.” The federal government is under stress from many fronts. Thus, for the first time, it is now entertaining buying water from the northern portion of the basin.
In 2023, all of the basin states renegotiated terms —with the notable exception of Victoria. Now they’re going back to try to fill that 450 GL target. Just days before Minister Watt’s announcement, the state government had unveiled a new bold initiative, committing to buy an additional 130 GL of water. The government will buy back this water voluntarily, targeting only the southern basin. This development is expected to provide a total of 300 GL in savings to the 450 GL target.
“While this is not an adopted policy of our government right now, I will work closely with my department in considering this advice.” – Murray Watt
The southern basin consists in areas from South Australia, Victoria, New South Wales and the Australian Capital Territory (ACT). Together, they form the catchment area for the Murray River. The northern basin makes up the Darling River’s catchment in New South Wales and Queensland.
Concerns from Regional Communities
Despite the government’s intentions to address environmental needs, some regional representatives express deep concerns about the implications of further water buybacks. Shane Sali, a vocal advocate for rural communities, warned that “the flow-on effects from further buybacks would be devastating for regional and rural communities.”
Senator Caddell expressed strong frustration over what he sees as a growing divide between the concerns of urban policymakers and their rural constituents. He stated, “Here we have it again, the city folk of the Labor Party worrying about the latte sippers of Balmain and Milsons Point before the people of Balranald and Mildura.” His comments represent a deepening conviction among the public that government actions will end up favoring environmental flows and leaving ag needs in the lurch.
Senator Caddell asserted that it is evident Labor has “prioritised environmental flows over agriculture when it comes to water buybacks to realise they are completely out of touch.”
Future Directions for Water Management
As discussions unfold regarding water recovery in the Murray-Darling Basin, Minister Watt has acknowledged that progress has lagged behind expectations. As he put it, “We’re a lot more behind than we need to be,” calling for a new, more forward-looking approach.
When the next comprehensive review of the basin plan occurs in 2026, significant changes could occur. These changes should place a greater emphasis on environmental outcomes in concert with the priorities of local communities and industries. Minister Watt is right to say that aiding ecological prosperity while ensuring economic prosperity is the way forward.
“It doesn’t have to be a binary choice between the environment or industry — we need to find ways to support both.” – Murray Watt
He further noted that ignoring the pressing environmental challenges would only lead to long-term detriment for both ecosystems and livelihoods in the region.
“Sure, I could stick my head in the sand and pretend that nothing needed to change. But all that would do is condemn the basin to environmental decline that would gradually strangle the industries and communities that rely on that environment for their livelihoods.” – Murray Watt
