1) Total storage capacity in the Murray-Darling Basin (MDB) has increased to 1.5 times the average annual flow of all rivers in the basin between 1920-2010 due to increased development of major storages and farm dams. 2) Dairy production accounts for 20% of the gross value of production but uses 17% of water in the MDB, while cotton accounts for 17% of value but uses 20% of water. 3) Recent climate trends in the MDB show a decrease in the number of wet months per year and an intensification of drought conditions linked to global warming.

2. Storage capacity and diversions in the MDB 0 5000 10000 15000 20000 25000 30000 35000 40000 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Volume (GL) Capacity of Major Storages Total Capacity, including farm dams Average Annual Flow of All Rivers Average Natural Flow to the Sea Increasing Diversions Total storage 1.5 times average annual flow of all rivers

4. Methods used for timing irrigations in the Murray-Darling Basin in 2006-07 Data source: ABARE 2009; Langford et al., 2011. Global Environmental Change

5. Divertible and developed water resources in 1995-96 (GL)

6. 15 Years Without a Wet Month Number of months per year with rainfall above the 90th percentile (updated to July 2010). Percentiles are based on the 20th century (1900-1999) climatology and are computed month by month. Acknowledgement: Bertrand Timbal (Centre for Australian Weather and Climate Research)

8. Water prices are extremely volatile … Source: Watermove

9. Recent trends in water markets (I): Water moves to South Australia Very little entitlement trade – all allocation … give statistic Australian Water Markets Report 2007-08, National Water Commission

10. Water Allocation & Milk Production

11. Potential costs and benefits of adjusting the reserve policy (conceptual) Reserve policy

13. Flow