Water resources caps

Capping of resource extraction volumes is an accepted way to manage overexploitation of surface waters and groundwaters. Around Australia, some 50 per cent of surface water management areas and 75 per cent of groundwater management units have some form of cap operating. However, AWR 2005 has shown that there is inconsistency in terms of what is included under a water resource cap, and that each jurisdiction has a different approach to the use of caps as a management tool.

Water resource caps can be defined as an 'upper limit for the volume of water available for use from a waterway, catchment, basin or aquifer'. Capping of water use is a primary management measure that is used to promote the sustainable use of water and prevent over allocation of the resource and therefore to meeting Objective (iv) of the National Water Initiative (NWI):

To complete the return of all currently overallocated or overused systems to environmentally sustainable levels of extraction.

Grapes are one of the many irrigated crops whose water use comes under a cap
Grapes are one of the many irrigated crops whose water use comes under a cap
Image by Arthur Mostead, sourced from the MDBC

The level at which a cap is designated can be set in a number of different ways, including the level of development at the time of implementation, or the sustainable yield for the resource. An understanding of the current use of caps in Australia is needed for the Commission to implement the National Water Initiative (NWI).

Water resource caps are not set in the same way in all water management areas because a simple upper limiting volume is not an appropriate limit in all cases. For example, in groundwater resource management, a designated water level or water pressure may be a more appropriate way of limiting extractions than applying a specific cap on extraction volumes. Caps on water entitlements may also be applied.

For this report, the states and territories provided information on use of caps on extraction, the form of the cap, the administrator of the cap, and water usage that does not fall under the cap.

One of the best-known caps in Australia , and the first inter-jurisdictional cap introduced, is the Murray-Darling Basin Cap (the Cap) on surface water diversions. It was introduced as a result of concerns about water availability in the Murray-Darling Basin during the early 1990s and in response to An Audit of Water Use in the Murray-Darling Basin (June 2005). After an interim Cap in 1995, the upper limit on the amount of water that could be taken from the Murray-Darling Basin river system was defined in 1997 as:

The volume of water that would have been diverted under 199394 levels of development.

Irrigation area along the Lower River Murray
Irrigation area along the Lower River Murray
Image by Arthur Mostead, sourced from the MDBC

A permanent Cap is in place in all the river valleys in the Murray-Darling Basin except the NSW Border Rivers, Murray-Darling Basin subcatchments in Queensland and the Australian Capital Territory . Queensland is in the process of determining its capped level of diversions. The NSW Border River cap is subject to the conclusion of an intergovernmental agreement between New South Wales and Queensland . The Australian Capital Territory cap is being developed.

 The Cap of 1993-94 levels of development is defined in terms of the infrastructure (pumps, dams, channels, areas developed for irrigation, management rules) that was in place in 1993-94; it does not limit water use to the actual volume of water that was used in 1993-94. For example, the Cap in the 2004-05 water year was calculated by using climate data for that year to predict how much water could have been diverted if 1993-94 management rules and infrastructure were still in place. Further information on the MDBC cap. The Murray-Darling Basin Cap does not currently include groundwater, return flows or floodplain diversions.

There has been an increase in groundwater extractions in the Murray-Darling Basin since the Murray-Darling Basin Cap on surface water diversions was introduced. The expected continuation of this trend poses a serious threat to the long-term availability of surface water in the Murray-Darling Basin . In response, the Murray-Darling Basin Commission is examining methods of either incorporating groundwater extractions into the current Cap or implementing a separate groundwater cap for the Murray-Darling Basin.

Related links

Water resources caps are discussed in more detail in the following sections:

 

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Last Updated 20/06/2007