Water resources are the foundation of healthy communities, environments and economies. We all depend on water in many ways.
Recognising how crucial water is (and its value) is integral to how we manage it and how water laws are enforced.
Water and industry
Find out what having a water licence and following the rules means to Bruce Chapman, a Bendemeer based farmer.
Economic value of water
We recently commissioned a second report on the value of water entitlements in NSW. It builds on our first Value of Water Report in 2021-22. The report shows that water entitlements have increased in value. They were worth over $29 billion two years ago. In 2023, they are estimated to be worth $41 billion. This is a 17 per cent increase in two years.
The new report also sought to put a dollar value on access to town water and stock and domestic supplies as well.
We now have the most comprehensive understanding of the value of water entitlement and the economic benefits of its usage.
This knowledge helps us to better understand the circumstances and motivations of water users. It helps us direct our staff and efforts into areas where competition for water is greatest.
Key findings:
- Increasing demand from horticulture and viticulture, like grapes, and from cotton and high-value crops, like blueberries, drives the rising value of water licences.
- Tradeable water entitlements (for irrigation and environment) are worth $25-$34 billion.
- Town water entitlements are worth $5.8 billion and underpin the NSW economy. Nearly 70 per cent is located along the coast.
- Domestic and stock entitlements are worth $0.8 billion and 80 per cent is in the southern inland zone.
- The most valuable water assets in NSW are in the Southern Inland zone and the Murray and Murrumbidgee regions, worth more than $23 billion. This is an increase of 21 per cent on $19 billion estimated in 2021.
- Water entitlements support agricultural production value of $3.7 billion a year. This amount doesn't include the economic impacts of water used in industries like mining.
- Water access leads to total direct and flow-on benefits of about $5.5 billion for regional economies. These benefits come from irrigated agricultural production
NSW water register
When NRAR has determined that water has been unlawfully taken, the Minister for Water may charge that person for the value of that water. This power was established under section 60G of the Water Management Act 2000 and clause 20 of the Water Management (General) Regulation 2018. NRAR uses the NSW water register, kept by WaterNSW, to calculate the value of the unlawfully taken water from trading price data.
The NSW water register includes water allocation trading price data since 2014–15. The trading of water allocations, being the water allocation under a water access licence available to be traded in a water year, is known as a water allocation assignment in the NSW Water Register. Trading price data means data about assignments of water allocations between access licences occurring in any month, but not any other dealings.
Social and cultural value of water
The report acknowledged that water entitlements also support other important benefits. These include environmental outcomes, cultural outcomes for First Nations people, and also economic and social outcomes for recreational and commercial fishing and tourism.
These benefits were not measured in this study.
Water and Indigenous communities
We spoke with Phil Duncan, NRAR’s first Indigenous board member about what water means to him and his community.