eWater Solutions gave this presentation on allocation and licencing as policy instruments in an IWRM platform.

1. Allocation and Licencing as Policy
Instruments in an IWRM Platform
eWater Source
Dr Robert Carr
Chief Executive

2. Water Reform
By the 1980s, it had become clear that many of Australia’s
surface water and groundwater systems were fully developed, if
not overdeveloped and the deficiencies of existing systems of
water rights became increasingly exposed.
The only way existing or new users could gain access to more
water to commence or expand their activities was by getting it
from someone else who already held a licence. However,
because water licences were tied to land, the only way was to
purchase the land to which a water licence was attached which
was costly and time-consuming.
To address those problems, some users and policymakers began
to advocate for the ability to reallocate water between users via
trading of licenses. Water trading thus largely began as a
pragmatic and user-driven response to emerging circumstances.

3. Entitlements and Allocations
• A Water entitlement is a right to a share of the water
available in the river system each year as a maximum
volume of water that can be taken.
• Water has different levels of reliability depending on
whether it is held in dams or dependent on local rainfall
etc.
• Users have different water ‘products’ that they can
access depending on the type of needs (irrigators, cities
etc). These are generally divided into High Reliability and
Low Reliability
• Each year, depending on the seasonal conditions, an
annual allocation is made to each license holder as a
percentage of the entitlement

4. Adaptive Water Management
3 main categories
• Permanent Transfer of a water entitlement
• A limited time transfer of water entitlement
(effectively a lease or rental).
• A temporary trade of Allocation. For example a
license holder may choose to decide to use all of
their seasonal allocation or transfer part (or all) to
another user.

5. Water Accounting and Sharing Policy
Water Accounting is the process by which water use is counted as
debits and credits against an account like a financial system and
are part of a “Water P&L/Balance Sheet” for the region. Water
Accounts are defined through the system of Entitlements and
Allocations, and can be transferred between users permanently or
temporarily.
Water Sharing is the policy by which water is divided amongst
users. Sharing can be in accordance with many kinds of rules:
• Based on flow thresholds and time of year
• Can share throughout the system based on priorities defined
by different methods (e.g. laws, agreements or court rulings)
• Can allocate water for the environment or energy sectors
• Is legally binding

6. • Higher expectations for Integrated Water Resources
Management Policy and Governance
• Greater focus on water use efficiency (eg. tradable rights,
growing cities and virtual transfers, environmental water)
• Need to address Ecological outcomes and Climate uncertainty
Nationally consistent framework, integrating:
• Balance of human and environmental needs
• Conjunctive surface and groundwater use
• Rural and urban supply
• Water use and reuse
• Both planning and operational requirements
• Trading of Entitlements and Allocations
Why a new modelling capability?

7. Energy Sector
DAMS &
WEIRS
IRRIGATIONDemand
Demand
Demand
CITIES
Runoff = Supply
eWater Source – IWRM supply and demand of
water quantity and quality - local to basin scale
Groundwater = Supply
Fisheries and
Wetlands

9. Modelling Modes
• Long Term Planning (100+ yrs)
• Short Term Planning (1-5 yrs)
• Flow and Salinity forecasts (6 mths)
• Operational Management (weeks)
• Water Accounting (1989 - now) – representing
changes in water management rules and policy
over time.

10. National Water Account
www.bom.gov.au/water/nwa
Published online
Input from many
jurisdictional agencies
NWA 2010

11. Thank You!
http://ewater.org.au/
Robert Carr, CEO
robert.carr@ewater.org.au