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The major inland alluvial groundwater sharing plans

Water sharing plans for the six major inland alluvial plans have commenced. All of these plans required significant reductions to the licensed entitlements of most groundwater users.

The key principles agreed to by both the NSW and Australian governments to reduce groundwater entitlements in the six major inland alluvial systems were:

to recognise water–dependent investment made by licence holders, and
to recognise that all groundwater entitlements, whether extracted (active) or not (inactive), have a value.

The catchment management authorities facilitated the consultations with the affected groundwater licence holders on the entitlement reduction methodology and distribution of financial assistance.

Amendments to the Lower Lachlan Water Sharing Plan

The amended plan commenced on 1 February 2008. A copy of the amended plan is available from the NSW legislation website.

The Lower Lachlan Groundwater Source is over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. Under the original plan entitlements would have been reduced using across the board approach - i.e. equally reducing entitlements.

Following a review by the Natural Resources Commission and further consideration of the socio-economic impacts, the sustainable yield has been set at 108,000 ML/year. The amended plan takes into account a licence holder’s past water use or ‘history of extraction’ when determining entitlement reductions. This incorporates provision for late developers. History of extraction reductions gives a higher weighting for historical or active water used and a lower weighting for inactive water when determining each licence holder’s new share of the sustainable yield.

A further key amendment to the plan is the provision of supplementary water to assist high using licence holder’s to adjust to the reduced entitlements.

To help licence holders manage their water access licences and water accounts in an effective and informed way, a guide has been produced to explain the basic working of the Lower Lachlan Water Sharing Plan.

Amendments to the Lower Gwydir Water Sharing Plan

The amended plan commenced on 1 October 2006. A copy of the amended plan is available from NSW legislation website.

The Lower Gwydir Groundwater Source is over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. Under the original plan entitlements would have been reduced using an across the board approach – i.e. equally reducing entitlements.

The amended plan instead takes into account a licence holder’s past water use or ‘history of extraction’. This gives a 90% weighting for historical or active water used and a 10% weighting for inactive water when determining each licence holder’s share of the sustainable yield. The approach also includes that the first 50 megalitres of each entitlement is exempt from reduction, and that entitlements of less than 50 megalitres are not to be reduced.

Amendments to the Lower Murrumbidgee Water Sharing Plan

The amended plan commenced on 1 October 2006. A copy of the amended plan is available from NSW legislation website.

The Lower Murrumbidgee Groundwater Sources are over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. Under the original plan entitlements would have been reduced using an across the board approach - i.e. equally reducing entitlements.

The amended plan instead takes into account a licence holder's past water use or 'history of extraction':

New water entitlements are calculated using the History of Extraction methodology including water asset value protection.
The asset value protection provision protects 19 % of the current entitlement.
The remaining available water is then distributed to entitlements that have extracted more than the 19 %, on a pro rata basis.
The first 100 megalitres of each entitlement is exempt from reduction.
Entitlements less than 100 megalitres are not to be reduced.

Amendments to the Lower Macquarie Water Sharing Plan

The amended plan commenced on 1 October 2006. A copy of the amended plan is available from NSW legislation website.

The Lower Macquarie Groundwater Sources are over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. The former 2003 plan (which did not commence) would have reduced entitlements using an across the board approach - i.e. equally reducing entitlements.

The amended plan instead takes into account a licence holder's past water use or ‘history of extraction’. Depending on the zone in the Lower Macquarie, this gives a weighting of between 69% and 77% for historical or active water used and a weighting of between 31% and 23% for inactive water when determining each licence holder's share of the sustainable yield.

Amendments to the Upper and Lower Namoi Water Sharing Plan

The amended plan commenced on 1 November 2006. A copy of the amended plan is available from NSW legislation website.

The Upper and Lower Namoi Groundwater Sources are over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. The former 2003 plan (which did not commence) would have reduced entitlements using an across the board approach - i.e. equally reducing entitlements.

The amended plan instead takes into account a licence holder's past water use or 'history of extraction'. Depending on the zone in the Upper and Lower Namoi, this gives a weighting of between 70% and 85% for historical or active water used and a weighting of between 30% and 15% for inactive water when determining each licence holder's share of the sustainable yield.

With the commencement of the Water Sharing Plan, the Lower Namoi is now being managed under the Water Management Act 2000. Information regarding the 'Lower Namoi Groundwater' is available (PDF 211KB).

Lower Murray Groundwater Plan

The plan commenced on 1 November 2006. A copy of the plan is available from NSW legislation.

The Lower Murray Groundwater Source is over-allocated and entitlements need to be reduced to the sustainable yield of the aquifer. The plan takes into account a licence holder's past water use or 'history of extraction' giving a weighting of 78% for historical or active water used and a weighting of 22% for inactive water when determining each licence holder's share of the sustainable yield.

The plans also include rules for protecting the environment, groundwater extraction, managing licence holders' water accounts and water trading.

Achieving Sustainable Groundwater Entitlements program

The Achieving Sustainable Groundwater Entitlements (ASGE) program aims to ensure the long term sustainability of the six major inland groundwater systems in NSW and a healthy and sustainable groundwater irrigation industry. The NSW and Australian governments have invested $135 million in the program to support licence holders and regional communities. Advice on the ASGE program is provided to governments by the Groundwater Adjustment Advisory Committee which includes representatives of the NSW Irrigators’ Council, Chairs of the six CMAs, and senior NSW and Australian government officers. For more information go to: