Address: Main Office: John Gorton Building

In 2009 the Marthaguy Irrigation Scheme, along with other irrigation water providers, received an initial Irrigation Modernisation Planning Assistance grant of $80 000 to carry out a three-phase project to reduce transmission losses in its system. The grant was used to get independent professional advice and conduct workshops to help develop a modernisation plan. The plan became an integral part of an application for funding under the Private Irrigation Infrastructure Operators Program (PIIOP).

Sections of the old irrigation channel have now been decommissioned and work has begun to build a new pipeline to carry stock and domestic water. The pipeline is scheduled for completion by November 2011.

In 2011 thanks to a successful planning project, the Marthaguy Irrigation Scheme in New South Wales received substantial funding under PIIOP to upgrade its irrigation infrastructure. Irrigation operators hope the upgrading will reduce water losses by five per cent and save up to 5 000 megalitres of water per year.

The scheme will receive up to $9.5 million to carry out infrastructure works to improve irrigation efficiencies. The Commonwealth will acquire entitlements to a share of the water saved by the project.

The project has also provided benefits for the local community: local earthmoving contractors from Warren undertook the decommissioning work, and businesses based in Narromine and Dubbo are installing the pipeline.

Once the reconfiguration project is completed, the community will benefit from a scheme that operates with low water losses and greater financial efficiency, resulting in long-term viability, increased water availability and greater flexibility and continuity of service to its members.

Inspecting pipes removed from a decommissioned section of the redundant Marthaguy Irrigation Scheme channel. (Tom McKeon, McKeon Associates)

Highlights

Significant progress has been made towards improving the health of rivers, waterways and freshwater ecosystems; progressing the national water reform agenda, and promoting efficient and productive use of water by agriculture and related industries. Some highlights of 2010–11 include:

• 
  At 30 June 2011, 1 118 gigalitres of water entitlements were secured through the Water for the Future initiative to ‘bridge the gap’ between future sustainable diversion limits and existing water diversions in the Murray-Darling Basin. These entitlements will provide on average, 796 gigalitres of water for the environment each year.
  
• 
  Delivering 387 gigalitres of Commonwealth environmental water—more than double the amount of the previous year—which capitalised on the environmental benefits of rainfall and enhanced river flows and floodplain inundation events. More than 553 gigalitres of water has now been delivered to the environment since Commonwealth environmental watering began.
  
• 
  Promoting fairer and more efficient water trades in the Murray-Darling Basin through the Water Charge (Planning and Management Information) Rules and Water Charge (Infrastructure) Rules, which came into effect on 1 July 2011 and 12 January 2011 respectively.
  
• 
  Investing in a variety of urban water infrastructure projects to diversify and secure water supplies in urban areas, including stormwater harvesting and re-use and recycling.
  
• 
  Starting research programs by the National Centres’ of Excellence in Desalination and Water Recycling.
  

Outcome 4, program 4.1

Deliverables

Deliverables	PBS Target	Results
The department will work with states and territories and partner organisations involved in Water for the Future to improve how water is used and managed.
A national program of water reform
Communities and industry, particularly in the Murray-Darling Basin are resilient, sustainable and well positioned to adapt to a future with reduced water availability. This will be achieved by: addressing structural imbalances in the use of water in the Murray-Darling Basin by supporting the Murray-Darling Basin Authority to prepare a proposed Basin Plan for release in 2011 assisting the transition to a healthier balance between extractive use and the environment in the Murray-Darling Basin by purchasing entitlements from willing sellers.	No target	Co-ordination of consolidated government advice to the Murray-Darling Basin Authority to assist in preparation of the Proposed Basin Plan. This includes detailed advice on the complementary role that the government’s Water for the Future initiatives are making towards delivering a healthy river system, strong regional communities and sustainable food production. By 30 June 2011 the department had secured 1 052 gigalitres of water entitlements through the ‘Restoring the Balance’ water purchase program, part of the Water for the Future initiative to ‘bridge the gap’ between future Sustainable Diversion Limits and existing water diversions in the Murray-Darling Basin. These entitlements will provide, on average, 749.9 gigalitres of water for the environment each year. In addition, 55.3 gigalitres of water entitlements were secured by the Commonwealth from the water savings made from infrastructure investments that will provide, on average, 35.2 gigalitres of water for the environment each year.^1
Reforms have delivered more efficient use of Australian water resources, based on sound knowledge, information, expertise and best-practice. This will be achieved by: coordinating, directing, enhancing and accelerating the reform, standard setting and research efforts of all governments through the COAG process and ministerial councils ensuring that states and territories implement agreed reform and comply with the Commonwealth–State Water Partnership Agreements	No target	All State Priority Projects business cases submitted were assessed by a thorough due diligence process, consistent with the process agreed in the Murray-Darling Basin Intergovernmental Agreement and the individual Commonwealth–State Water Partnership Agreements.
Continued helping to bed in the new institutional management introduced under Water for the Future and the Water Act 2007 (as amended) and the new roles undertaken by the Murray-Darling Basin Authority, the Australian Competition and Consumer Commission, the National Water Commission and the Bureau of Meteorology.	No target	Significant progress was made in implementing the new institutional management arrangements:  the Water Charge (Infrastructure) Rules were made, and took effect on 12 January 2011 following advice from the Australian Competition and Consumer Commission the National Water Commission significantly developed its 2011 biennial assessment of progress against the National Water Initiative the Bureau of Meteorology continued work as the national water information hub the Murray-Darling Basin Authority produced the Guide to the Basin Plan and continued work towards releasing the draft Basin Plan.
Australian water resources are used effectively through a well functioning and transparent water market without trade restriction. This will be achieved by developing effective markets in rural and urban water to efficiently allocate scarce water to its most productive uses.	No target	Progress to develop a transparent and effective national water market included: Water Charge (Infrastructure) and Water Charge (Planning and Management Information) Rules coming into effect subject to various transitional periods amendment of the Water Charge (Termination Fees) Rules to allow irrigation infrastructure operators to include GST within termination fees
Continued	No target	investigating concerns about the conduct of water market intermediaries commencement of drafting regulations which would provide clarification on the content of an undertaking being accepted under Division 6 (Enforceable Undertakings) of the Water Act 2007 for the Australian Competition and Consumer Commission and the Murray-Darling Basin Authority publishing the second stage of the National Water Market Systems website with a range of water market report options now available. The Productivity Commission is undertaking a public inquiry into the case for microeconomic reform in Australia’s urban water sector. The inquiry will assist COAG’s commitment to progress urban water reform by identifying opportunities for efficiency gains in the structural, institutional, regulatory and other arrangements that govern the sector.
In rural areas
Irrigation is significantly more efficient and water savings are shared between irrigators and the environment. This will be achieved by improving the efficiency of irrigation by investing with states, territories and industry in upgrading irrigation infrastructure both on-and off-farm. This will make communities and the irrigation sector more resilient, sustainable and better positioned to adapt to lower water availability.	No target	The department continued to invest in upgrading irrigation infrastructure through the Sustainable Rural Water Use and Infrastructure Program and related programs and projects. Examples are in the main content on Outcome 4.
In urban areas
Urban water use is more efficient and supply more secure. This will be achieved by: assisting urban communities and businesses to secure water supplies by investing with states and territories in upgraded infrastructure, and adopting and developing new technologies	No target	Invested in infrastructure projects to secure water supplies for major urban centres such as: an aquifer storage and re-use system as part City West Water’s West Werribee Dual Supply Project in Victoria Hunter Water Corporation’s Lower Hunter Recycled Water Initiative in New South Wales Infrastructure works to allow future expansion to 100 gigalitre capacity at the Southern Seawater Desalination Plant in Western Australia. The National Centre of Excellence in Desalination announced outcomes from the first two funding rounds, with the third funding round closing in May 2011.
Continued helping all Australians use water more efficiently and adopt smart technologies.	No target	The department continued to deliver existing programs in particular, Water Smart Australia that aims to accelerate the uptake of smart technologies and practices in water use and advance the National Water Initiative. Twenty-nine projects under this program were completed during the year. Significant achievements of the Water Efficiency Labelling Standards (WELS) include: progressing the Environment Protection and Heritage Council’s decision in July 2010 to introduce minimum water efficiency standards for washing machines and water efficiency labelling for combined washer-dryers that use water in dryer mode tabling the final report of the Independent Review of the Water Efficiency Labelling and Standards Scheme in parliament with work now underway to implement its recommendations amendments to the Water Efficiency Labelling and Standards Act 2005 received Royal Assent in March 2011. The amendment allows the minister to determine WaterMark certification as a requirement for WELS product registrations. This will facilitate closer arrangements between the WaterMark and WELS registration schemes.
Healthy rivers and wetlands
Australia’s rivers, wetlands and freshwater ecosystems are healthy and will be achieved by: environmental watering (using water derived from the purchase of entitlements and from infrastructure improvements) improving the standard of management of our rivers, wetlands and freshwater ecosystems by working with states, territories and landowners.	No target	Please refer to the Commonwealth environmental water annual report at page 261. The department led the development of national policies on implementing the Ramsar Convention, river health, and aquatic ecosystems, including developing a national framework for High Ecological Value Aquatic Ecosystems.
Efficiency of rural water use
Commonwealth-led programs under the Intergovernmental Agreement (projects on schedule).	Yes	100%
State-led programs under the Intergovernmental Agreement-funded by the Commonwealth (projects on schedule).	Yes	83%*
Other projects for rural water use (projects on schedule).	Yes	90%
Secure water supplies for cities and towns, remote communities and business
Recycling, desalination and stormwater harvesting.	Projects on schedule	85%
Centres of Excellence in desalination and water recycling.	Research underway	100%
Other approved urban project commitments.	Projects on schedule	95%
Deliverables	PBS Target	Results
Help households and businesses use water more efficiently
Green precincts.	Projects on schedule	69%
Assist states, territories and landowners improve management of rivers and wetlands
Ramsar site ecological character descriptions [%].	100	98%

1 In addition, Queensland gifted 10.6 gigalitres to the Commonwealth.

* Percentage of projects on schedule against agreed timelines, however there have been delays in the rollout of some major projects.

Outcome 4, program 4.1

Key Performance Indicators (KPIs)

KPIs	PBS Target	Results
In 2010–11 the department will help to implement the Australian Government’s policies and programs, including the implementation of programs and working with its partner governments through COAG and relevant ministerial councils, contributing to: responding to climate change, using water wisely, securing water supplies and healthy rivers and waterways.
A national program of water reform
The National Water Commission will complete in 2011 its third biennial assessment of the National Water Initiative. This will assess the progress of the department, other Commonwealth agencies, the states and territories in delivering the reform program set in 2004 in the National Water Initiative.	No target	The National Water Commission biennial review of the National Water Initiative is due for publication in the second half of 2011.
In rural areas
The water savings directly attributable to the department’s investments in irrigation efficiency will be reported annually to 2017 as:
quantities of water returned to irrigators	No target	Irrigators retained an estimated 55 270 megalitres of water entitlements as their share of water savings from projects that increased water use efficiency.
quantities and location of water entitlements transferred to the Commonwealth Environmental Water Holder for use for the environment.	No target	The quantities and location of water entitlements transferred to the Commonwealth Environmental Water Holder for use for the environment are recorded on the department’s website.
In urban areas
The department will quantify the amount of water available to urban water users as a result of the department’s investment in projects that provide new sources of supply of water.		77 560 megalitres.
Department to describe the outcomes from funding projects that aim to promote efficient water use.		These are described in the main text and include: households provided with 4 474 rebates for the installation of rainwater tanks and greywater systems, totalling $2.15 million during the reporting year progressed the Environment Protection and Heritage Council’s decision in July to introduce minimum water efficiency standards for washing machines and water efficiency labelling for combined washer-dryers that use water in dryer mode
Continued		state, territory and local governments provided with increased funding for 22 projects in stormwater harvesting and re-use cities and towns with fewer than 50 000 people provided with funding of over $250 million over five years to over 70 projects which aim to upgrade older pipes and water systems, install new infrastructure and for practical projects to save water and reduce water losses.
Estimate of water savings.		17 608 megalitres.
Healthy rivers and wetlands
The purchase of water entitlements will continue to be reported on the department’s website, so that the public can see how the water buyback program is helping to restore a more sustainable balance between environmental and extractive uses in individual catchments and across the Murray-Darling Basin.	No target	By 30 June 2011 the Department had secured the purchase of 1 052.3 gigalitres of water entitlements to ‘bridge the gap’ between future Sustainable Diversion Limits and existing water diversions in the Murray-Darling Basin. These entitlements will provide, on average, 749.9 gigalitres of water for the environment each year.
Environmental watering actions will be reported on the department’s website, in the Commonwealth Environmental Water Holder’s annual report and through a separate annual outcomes report. This information will describe the watering actions undertaken, the objectives of those actions and the outcomes achieved in terms of improved health of rivers and wetlands.	No target	Please refer to the Commonwealth Environmental Water annual report at page 261.
Rural water project efficiency
Off-farm efficiency [% increase in systems where investments are made]	No target (because programs are yet to be completed).	0 (because programs are yet to be completed).
On-farm efficiency [% increase in systems where investments are made]	No target (because programs are yet to be completed).	0 (because programs are yet to be completed).

Resources

The following resources relate to information referred to in Outcome 4, Sustainable Water.

Australian National Botanic Gardens Non-Potable Pipeline Project documentary www.youtube.com/watch?v=3TTSRjE4gC0

Case studies about the delivery of environmental water to key sites in the Murray-Darling Basin www.environment.gov.au/about/media/water/index.html

Commonwealth Environmental Water Holder—statutory position www.environment.gov.au/water/policy-programs/cewh/index.html

Environmental flows in the Snowy River www.youtube.com/watch?v=jcDHc63Aehw&feature=channel_video_title