Canberra: Water rights
Operating rules and constraints
Urban water restrictions
Icon Water, with the approval of the Australian Capital Territory (ACT) Government, can impose urban water restrictions on the Canberra region.
The ACT Water Strategy 2014–44: Striking the Balance (ACT Water Strategy) will guide management of the Territory’s water supply, management, and catchment practices over the next 30 years. The ACT Water Strategy builds on the achievements of the original ACT Water Strategy, Think Water, Act Water. During 2014–15, there were no water restrictions; however, permanent water conservation measures remain in place.
Murray–Darling Basin cap
In June 1995, an audit of water used in the Murray–Darling Basin revealed that diversions from rivers had increased by 8% in the previous years and were averaging 10,800,000 ML/year. Subsequently, the Murray–Darling Basin Ministerial Council introduced a cap on diversions of water from the rivers of the Murray–Darling Basin. The cap aimed to limit the volume of water that could be diverted in any year to that based on the 1993–94 levels of development plus allowances (Murray–Darling Basin Authority 2009). The cap's primary objectives are to increase the health of the Murray–Darling Basin's river systems while maintaining sustainable consumptive use (Australian Government Water Act 2007).
The Murray–Darling Basin cap for New South Wales is defined as the long-term average annual amount of water that would be diverted from streams in valleys if the development and management of that valley remained as it was at the end of the 1993–94 season (DPI Water).
For the ACT, the Murray–Darling Basin cap allows the ACT Government and Queanbeyan City Council to divert an average net volume of 40,500 ML/year from surface water sources. The amount of water available to the ACT under these arrangements increases with population growth at a per person rate, although the amount allocated for additional population is discounted 25% to reflect water-use reduction targets set in the ACT Government's Think Water, Act Water strategy. ACT Water Strategy provides the information on water allocation from 2019 under the Murray-Darling Basin Plan (Basin Plan), adopted in November 2012.
The Basin Plan aims to balance the water needs of the environment and other uses by introducing 29 surface water sustainable diversion limit (SDL) resource units and 81 groundwater SDL resource units (see MDBA). The Figures C12 and C13 show the SDL resource units covering the Canberra region. The water abstraction limit will be determined by the relevant SDLs under the Basin Plan.
Figure C12 Surface water sustainable diversion limit (SDL) resource units in Canberra region
Figure C13 Groundwater sustainable diversion limit (SDL) resource units in Canberra region
Water entitlements and other statutory water rights
ACT
A water access entitlement is a statutory instrument issued under the Water Resources Act 2007 (ACT) and represents a share of the water resources controlled by the ACT. It is expressed as either:
- a volume; or
- a percentage share of the water available in a defined water management area (WMA) according to the current water sharing plan.
If a water access entitlement is defined as a percentage share of the total water available within the WMA, then the actual volume of this resource may decrease when the total water available is revised. There is no statutory review process for water access entitlements at present, but this may alter with changes brought about through the Basin Plan. Administrative reviews are currently driven by availability of the water resource or through assessment of the environmental flow guidelines, which are evaluated every five years.
Icon Water holds the main water access entitlement for the purposes of urban water supply to the Canberra region.
The types of water access entitlements issued by the ACT Environment and Planning Directorate are described in Table C6.
| Type of water access entitlement | Description |
| surface water | Specifies the volume of surface water that the holder is entitled to use from a WMA, on an annual basis. |
| groundwater | Specifies the volume of groundwater that the holder is entitled to use from a WMA, on an annual basis. |
| groundwater and surface water | Specifies as a single total the combined volume of groundwater and surface water that the holder is entitled to use from a WMA, on an annual basis. For these types of water access entitlements, an associated licence may specify the amount that can be extracted as groundwater with the remaining volume being available from surface water. |
| urban water utility | Specifies the volume of water that the holder is entitled to use on an annual basis for the purpose of urban water supply to the Canberra region. |
In addition to the water access entitlement, a separate licence is required to abstract water. The licence states the location from which water can be abstracted and used. Conditions related to the abstraction and use of that water are controlled by the ACT Environment and Planning Directorate.
Within the ACT, some basic water rights exist that do not require a water licence. These include:
- abstraction of surface water for stock and domestic purposes, which does not require a licence if the water is collected from the lessee's property or where the property directly abuts a waterway
- rainwater harvesting via a rainwater tank installed in accordance with a development approval under the ACT Planning and Development Act 2007, or a tank that is exempt from that Act
- various short-term water uses as detailed in the Water Resources Regulation 2007 (ACT).
NSW
The Water Sharing Plan for the Murrumbidgee Unregulated and Alluvial Water Sources, under the Water Management Act 2000 which commenced in 2012, covers the Canberra region. All NSW surface water licences specify the volume that may be abstracted by the entitlement holder. Each licence has purposes attached to it. These purposes are given a proportion of the overall licence entitlement. These licences are also attached to the land. There was no metering of usage in place for these licences during the reporting period.
Water allocations
All water entitlement holders are entitled to abstract water as specified in the licences subject to environmental flow conditions and unless restrictions are placed on them by their relevant State/Territory authorities (authorities include the ACT Environment and Planning Directorate and DPI Water). Restrictions may be placed on water abstractions when the flow is unavailable. For the NSW portion of the Canberra region, water allocation details are given in the Water Sharing Plan for the Murrumbidgee Unregulated and Alluvial Water Sources, under the Water Management Act 2000.
Trades and water rights transfers
Water market rules: interstate trading
ACT
The Water Resources Act 2007 allows for interstate trades; however, the required mechanisms are not yet in place for this trading to occur (National Water Commission 2011).
NSW
There are no interstate trades of water permitted in the NSW-administered area of the Canberra region.
Water market rules: inter-valley and within-valley trading
ACT
The Water Resources Act 2007 allows for inter–valley trades. Water access entitlements can be traded within and between WMAs; however, water licences cannot be traded. Water access entitlement trade between WMAs can only occur if the licence amount in the receiving WMA is not fully developed (National Water Commission, Australian water markets report 2010–11). Groundwater entitlements are tradeable on the same basis as surface water entitlements.
NSW
Inter-valley trading rules are defined in State legislation, water resource plans, and the Murray–Darling Basin Agreement.
Within valley trading, rules are also defined in State legislation and water resource plans. Surface water trading within valleys is usually available within regulated systems. Groundwater trading within an aquifer is available in the developed water resource plan.
Restrictions on trade
ACT
Icon Water holds the urban water access entitlement from ACT Environment and Planning Directorate without any charge. No trading of this water is allowed.