Water accounting
An understanding of the water we have is important if we want to be able to make decisions to use water in a sustainable way. Just as financial accounting is essential for the successful operation of a business, standard water accounting practice is needed to provide support, security and confidence in water markets.
To manage Australia's water resources effectively and sustainably, we need to know:
- how much water there is
- where it is
- who is using it
- what it is being used for.
As well as underpinning trade, water accounting is necessary for more efficient allocation and use of water, and for cost-effective investment in water infrastructure.
Water data
Water accounting will only be as good as the data it uses. At the moment, there is a wide range of measurement and metering arrangements and activities across Australia. It's a reality that Australia will not always - if ever - be able to obtain 100% accuracy in water measurement.
Having and applying national standards for measurement and metering - including knowing the degree of accuracy of each measurements system - will be a crucial step in developing nationally compatible water accounting systems.
Water accounting and water reform
Water accounting underpins just about every aspect of the National Water Initiative (NWI), which is why the National Water Commission has made water accounting a major reform priority.
Building on the water resources measurement, monitoring and reporting activities already undertaken by the states, territories and industry, the NWI supports the development of a national water accounting system and the closure of any gaps that exist in the current systems.
Progress against the NWI and the National Water Accounting Model
The 2009 Biennial Assessment found that progress had been made in developing and implementing water accounting across Australia in line with the National Water Initiative and the Water Act 2007. However, scope remains to improve comprehensive water accounting and accelerate its implementation.
Findings include that:
- the quality of data and arrangements for data sharing were still impediments to effective and coordinated water accounting. This is particularly the case when compiling state and regional data into a national account. Data exchange between agencies and jurisdictions remains difficult, due to the absence of technical standards and administrative protocols for the access, transfer and aggregation of data.
- with the legislative empowerment and funding of the BoM under the Water Act 2007, the first vital steps are being taken towards a nationally recognised institutional 'home' for Australia's water data and accounting effort. However, there is no defined role for the BoM in advancing the implementation of all aspects of water accounting across all jurisdictions, which remain responsible for many water accounting activities. It is therefore essential that the BoM and the jurisdictions continue to work closely together.
- standards for environmental water accounting are being addressed through the National Water Accounting Development Project. While progress has been made in New South Wales, Victoria and the Murray-Darling Basin, only limited progress has been made in developing the environmental water registers required by the NWI.
- while the finalisation of the pattern approvals standards for non-urban application meters is an important step, considerable work remains to develop nationally standardised approaches to meter installation and testing, and to implement the standards.
- while the development of metering implementation plans is progressing well, resource constraints will have a major impact on the jurisdictions' abilities to deliver expanded and accurate metering in accordance with the plans.
- compliance and enforcement activities to ensure that users do not extract more than their allocated volumes of water vary considerably across Australia, and adoption of national principles to guide compliance and enforcement efforts may disseminate best practice and build community confidence, especially across state borders.