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 2007 Biennial Assessment (see also 2009 Biennial Assessment) found that, while showing signs of some good practice, water accounting in Australia is at an immature phase and being developed in an ad hoc fashion. As a result, Natural Resource Management Ministers agreed to develop the National Water Accounting Model based on a disciplinary approach-similar to financial accounting.
The work on developing a national water accounting system, expected to be completed in 2010, includes national standards for water market accounting, resource accounting and environmental water accounting, as well as standards for water accounting information systems.
The National Water Accounting Model will be a major step towards ensuring that adequate measurement, monitoring and reporting systems are in place in all jurisdictions across Australia.