Growing and changing demand for water must be addressed

Governments must renew and update the National Water Initiative (NWI) to address the effects of climate change and growing and changing demand for water, according to the interim report of the Productivity Commission’s review of the agreement.

The NWI was created in 2004 and sets out principles for water management, covering everything from access rights to pricing principles and investment in infrastructure.

“Water is essential to the wellbeing of all Australian communities, the environment, and the economy. The National Water Initiative has set strong foundations for managing this precious resource over the past 20 years but there are gaps that must be addressed,” said Commissioner Joanne Chong.

The report says the foundations of the NWI should be retained and expanded to better address the effects of climate change.

“Climate change is making rainfall more variable and increasing the incidence of extreme weather events. The NWI must protect our water security in the face of these growing challenges,” said Associate Commissioner Anne Poelina.

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

“Communities in some regional and remote areas still do not have access to safe drinking water. In a renewed National Water Initiative, governments should commit to ensuring safe and reliable drinking water for all Australians,” said Commissioner Chong.

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 Associate Commissioner Poelina.

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

“The foundations of the NWI are sound and they should be retained to avoid jeopardising the progress Australia has made over the past two decades,” said Associate Commissioner Poelina.

“We need a revitalised National Water Initiative that builds on the strengths of the old agreement while preparing us for the future,” said Commissioner Chong.

Read the interim report and provide a comment or submission at www.pc.gov.au/water-reform-2024-interim.