Allocations and entitlements
In many areas of Australia, water use is managed through the granting of water access entitlements and water allocations.
Ongoing water access entitlements (permanent) and seasonal water allocations (temporary) form the basis of water trading, and are an important element of water reform in Australia. Under the National Water Initiative (NWI):
- a water access entitlement, such as a water licence, refers to an ongoing entitlement to exclusively access a share of water
- a water allocation refers to the specific volume of water that is allocated to water access entitlements in a given season.
Water-sharing plans establish the type of entitlement and the share of water for a given water resource system. Entitlements can be issued to commercial users (eg, irrigators, mining and industrial) and non-commercial users (eg, town supplies, recreation and environment).
Water trading terminology
Each jurisdiction has different terminology and definitions for water access entitlements and seasonal water allocations. For specific jurisdictional terms and definitions see:
- Dictionary of terms for water access entitlements and transactions
- A water access entitlement and a pot of beer
Allocations, entitlements and water reform
Under the National Water Initiative (NWI), a water access entitlement is required for any consumptive use of water, and is to be defined as a permanent share of the consumptive pool of a water resource system as defined under a water-sharing plan. It is to be separated from land ownership.
The allocation of water to an entitlement is to be made consistent with the requirements and rules set out in the relevant water plan. Entitlements are to be:
- exclusive
- able to be traded
- enforceable
- recorded in publicly-accessible water register.
Key objectives of the NWI in relation to entitlements and allocations are to:
- enhance security and certainty of water access entitlements by clearly specifying the statutory nature of those entitlements
- ensure they possess clear and nationally-compatible characteristics
- ensure entitlements clearly assign the risks arising from future changes to the consumptive pool, including unregulated growth in interception through land-use change.
Reform actions for entitlements and allocations are closely tied to those for water planning and water trading.
Progress
In its 2007 Biennial Assessment and subsequent 2008 update report to the Council of Australian Governments on progress in water reform, the National Water Commission found that almost all states and territories had made good progress in implementing NWI-consistent water access entitlement and planning frameworks. Good progress had also been made in specifying NWI-compliant water access entitlements in high priority water systems. (See also 2009 Biennial Assessment).