Farmer faces costs and water loss after overdrawing water account

Overdrawing their water accounts has proved costly for a Riverina farming enterprise under an enforceable undertaking (EU) signed with the Natural Resources Access Regulator (NRAR).

Owners of the mixed cropping operation near Carrathool have agreed to the legally binding agreement after overdrawing their water accounts by 2,280 ML between October 2018 and November 2020 including a period of severe drought.

NRAR’s Director Water Regulation West Graeme White said the landholders now faced hundreds of thousands in financial costs, loss of some water entitlements and three years of weekly monitoring.

“The water was taken from the at-risk Murrumbidgee Deep Groundwater Source and represents enough water to fill more than 900 Olympic swimming pools,” Mr White said.

"Overdrawn water accounts are a significant problem the independent regulator is tackling.

"A water account is like a bank account - you can't spend it until it's been deposited in the account. In this case the licence holder pumped water when they had either zero-balance available or was already in deficit," he said.

"It's vital you know how much water you have to use.

“It’s a common misconception that you can purchase water after you’ve pumped. That’s not true, you may be committing an offence if you overdraw your account.

“When you take more than your allocation you are taking water from the environment, negatively affecting dependent ecosystems and restricting access to water for users who have followed the rules."

The Enforceable Undertaking came into effect on April 26, 2022. Under the terms of the agreement the landholders will:

• pay for the 2280ML of water overdrawn but not be able to use it in the following year
• surrender some licences and simplify others to make management of water accounts easier and more efficient.
• pay $80,000 to Hay Shire Council for the redevelopment of a small park beside the Mid Western Highway at Hay (Murray Street Park).
• carry out three years of weekly manual meter readings under the State water accounting system (iWAS) to ensure water accounts are not overdrawn again
• reimburse NRAR for $25,000 in investigation costs.
• pay NRAR's $100,000 legal costs.

Overdrawn accounts are one of NRAR’s four regulatory priorities. NRAR is monitoring compliance across NSW to address the issue of water users overdrawing from their water accounts.

View other enforceable undertakings with NRAR.