Water Act 2007

The Act primarily affects the Basin States (NSW, Victoria, Queensland, South Australia and the ACT; s 4(1), definition of "Basin State"). These states must prepare water resource plans consistent with the Basin Plan for accreditation (s 63) or face step-in by the Authority (s 68). They must report on water take and compliance (s 71) and align state laws with the Basin Plan (s 40). The Murray-Darling Basin Ministerial Council and Basin Officials Committee have roles in advising on the Basin Plan (ss 43A, 47A, 49A) and managing the Agreement (Part 1A).

The Murray-Darling Basin Authority (established by s 171) is directly affected as the body preparing the Basin Plan (s 41), monitoring its effectiveness (ss 50-52A, 73L-73M), identifying risks (item 3 of table to s 22(1)), coordinating environmental watering (ss 29-32) and exercising special powers (Part 10). Its Chief Executive and members are subject to appointment, disclosure and conduct rules (ss 178-190).

Water users, including holders of water access entitlements (s 4(1)), irrigation rights and water delivery rights (s 4(1)), are affected by sustainable diversion limits (s 23), trading rules (item 12 of table to s 22(1); s 26) and risk assignment (Division 4 of Part 2, ss 74-85A). They may receive payments if reductions are attributable to Commonwealth shares (ss 77, 83). Infrastructure operators (s 7) face water charge rules (s 92), market rules (s 97) and metering requirements (s 22(3)(i)).

Eligible water markets intermediaries (s 4(1)) are regulated under Part 5, including the Water Markets Intermediaries Code (s 100G), trust accounting (ss 100R-100X) and ACCC oversight (ss 100ZD-100ZG). They must not contravene the code (s 100M).

Indigenous people are affected through requirements to consider their values, uses, traditions and customs (s 3(fa); item 1 of table to s 22(1); s 22(3)(ca); ss 85E-85F). The Act does not affect native title (s 13).

The Commonwealth Environmental Water Holder (s 104) manages holdings (s 105) for environmental outcomes (s 3(d)(ii)). The ACCC monitors charges and markets (ss 94, 99, 100A, 100D) and enforces Parts 4, 4A, 5 and 10AC. The Productivity Commission conducts inquiries (Part 3, ss 87-89).

Operating authorities, infrastructure operators and agencies must comply with the Basin Plan (s 35) and water resource plans (s 59). The Bureau of Meteorology collects water and water markets information (Parts 7 and 7A).

Enforcement affects persons contravening civil penalty provisions (Part 8), with penalties up to 50,000 for bodies corporate (s 73B(6)) or 10,000 under the code (s 100J). Executive officers may be liable (s 168).

The Act binds the Crown (s 12) but agencies are generally not liable to prosecution (s 12(3)), subject to exceptions.

All identifications are grounded in the source: Basin States in s 4(1); Authority in s 171 and functions in s 172; water access entitlements in s 4(1); intermediaries in s 4(1) and Part 5; Indigenous matters in s 3(fa) and ss 85E-85F; Environmental Water Holder in s 104; ACCC in ss 94, 99, 100A, 100D, Part 10AC; enforcement in Part 8 and s 137.

The Authority's key duties include preparing the Basin Plan (s 41), consulting states and the public (ss 42-43A), seeking Murray-Darling Basin Ministerial Council comments (s 43A), and advising on impacts (s 49A). It must review the Plan every 10 years (s 50) or when requested (s 50(2)), prepare annual effectiveness analyses (s 52A), and monitor compliance (s 34). It coordinates environmental watering (s 31), identifies held environmental water (s 32) and advises on adjustments to sustainable diversion limits (s 23A).

The Murray-Darling Basin Ministerial Council must be consulted on proposed Basin Plans and amendments (ss 43A, 47A) and receives reports on impacts (s 49A). Basin States must prepare water resource plans for accreditation (s 63), report on water take (s 71), and ensure consistency with the Basin Plan (s 59). They may apply the risk assignment framework (s 74A).

Holders of water access entitlements have rights to allocations (s 4(1)) but duties to comply with the Basin Plan (s 35) and water resource plans (s 59). They may claim payments for reductions attributable to the Commonwealth share (ss 77, 83). Environmental water holders must consult on watering schedules (s 29).

The Commonwealth Environmental Water Holder's duties are to manage holdings without disposing of water except as permitted (s 106), operate under rules (s 109), and report annually (s 114). It may not be directed on certain matters (s 107).

The ACCC's duties include monitoring water charges (s 94), transformation arrangements (s 99), and enforcing Parts 4, 4A and 5 (ss 100A, 100D, 100L, 100ZA-100ZG). It advises on water trading rules (ss 42(2), 46(2)) and fees (s 212(2)).

The Inspector-General's duties include auditing compliance (s 73L), issuing enforcement notices (s 165), conducting inquiries (s 239AA), and reporting (s 215Y). It may require information (s 238) and enter premises (Part 10AA).

The Bureau of Meteorology must publish water accounts (s 122), water information (s 123) and water markets information (s 135D), issue standards (ss 130, 135J), and collect data (ss 126-127, 135F-135G).

Rights include procedural fairness in Basin Plan processes (ss 43, 47), review of decisions (e.g. accreditation under s 63), and claims for payments (ss 77, 83). Indigenous rights to be considered are in s 3(fa) and s 22(3)(ca).

All duties and rights are directly from the text: Authority duties in ss 41-52A, 172; state duties in ss 59, 63, 71; entitlement rights in ss 4(1), 35, 59, 77, 83; Environmental Water Holder in ss 105-107, 114; ACCC in ss 94, 99, 212(2); Inspector-General in ss 73L, 165, 215C, 238, 239AA; Bureau in ss 120-123, 135C-135D; procedural rights in ss 42-48.

Enforcement is central to Part 8. Civil penalty provisions (s 146) attract pecuniary penalty orders (s 147), with maxima of 5,000 penalty units for individuals and 50,000 for bodies corporate under aggravated taking provisions (s 73B(6)). The Water Markets Intermediaries Code may prescribe penalties up to 600 penalty units (s 100J), with the code itself a civil penalty provision (s 100K). Executive officers are liable if they fail to take reasonable steps (s 168; s 169 sets out the test).

Injunctions (s 140), declarations (s 144) and enforceable undertakings (s 163) are available. Infringement notices (ss 155-162) offer an alternative, with amounts up to one-fifth of the court maximum (s 157(2)). Relinquishment orders require payment of benefits derived from contraventions (s 164A).

Criminal offences include basic and aggravated taking of water without authorisation (ss 73A-73B), with penalties of 3 years/180 units or 5 years/300 units. Failing to comply with enforcement notices (s 166) is a strict liability offence (30 units). Obstructing authorised officers (s 222C, s 237A) attracts 100-unit civil penalties. Providing false information under notices (ss 100Y, 100ZG) is penalised at 60-120 units.

The Inspector-General is the appropriate agency for designated compliance provisions (s 137; definition in s 4(1)), including Part 2, Part 7A, ss 166, 222C, 222D, 237A, 238. The ACCC enforces Parts 4, 4A, 5 and 10AC (s 137). The Minister enforces Part 7 (s 137).

The Act does not abrogate privilege against self-incrimination or legal professional privilege (ss 222A, 236, 239AH). Evidence from civil proceedings is inadmissible in criminal ones (s 154). Ancillary contraventions apply (ss 154A, 100N).

Enforcement notices (s 165) may direct action to prevent future contraventions or remedy effects, with failure attracting 600-unit civil penalties (s 166(5); continuing contraventions under s 154B). Public warning notices may be issued (ss 100ZA, 167A).

All penalties and mechanisms are from the text: civil penalties in ss 146-154E, 73A-73B, 100M-100N, 166; offences in ss 73A-73B, 166, 222C, 237A; notices in ss 155-162, 165-167, 100ZA, 167A; Inspector-General role in s 137 and Parts 9A, 10AA, 10AB; ACCC in s 137 and Parts 4, 5, 10AC; privileges in ss 222A, 236, 239AH.

The Act interacts with the Murray-Darling Basin Agreement (Schedule 1; Part 1A, ss 18A-18H), which operates as an agreement between parties and confers functions on the Authority and Basin Community Committee (ss 18E-18F). Amendments to the Agreement are incorporated by regulations (s 18C). The former MDB Agreement is transitioned (Part 10A, ss 239A-239W), with assets, liabilities and proceedings vesting in the Authority (ss 239C-239F, 239J-239L).

State laws are affected by s 40, which provides that the Basin Plan does not exclude concurrent state laws setting lower diversion limits. Water resource plans must be accredited if consistent (s 63), but the Authority may assist preparation (s 67). State water management laws (defined in s 4(1)) are referenced for alignment (s 22(2)) and risk frameworks (s 74A).

The Act does not affect the Native Title Act 1993 (s 13) or the Snowy Hydro Corporatisation Act 1997 (NSW) licence (s 21(6)-(7)). It relies on constitutional powers including external affairs (s 9; international agreements in s 4(1)), corporations (ss 9, 36-37, 73C-73D), trade and commerce (ss 10, 37, 61), territories (s 9A) and referrals (s 9A; referring States in s 18B).

Interaction with the Environment Protection and Biodiversity Conservation Act 1999 is through declared Ramsar wetlands (s 4(1)) and biodiversity (s 4(1)). The National Water Initiative is a mandatory consideration (s 21(4)(c)(i); Schedule 3A). The Productivity Commission inquires into the Basin Plan and National Water Initiative (Part 3, ss 87-89).

The Public Governance, Performance and Accountability Act 2013 applies to the Authority (note to s 176(1)) and Inspector-General (s 215KA). The Legislation Act 2003 governs instruments (e.g. Basin Plan is a legislative instrument; s 33).

Water charge rules (Part 4) and market rules (Part 4A) interact with the Competition and Consumer Act 2010 via ACCC functions (ss 100A, 100D). The Corporations Act 2001 excludes financial products from eligible tradeable water rights (s 6A(2)).

The Act binds the Crown (s 12) but limits liability (s 12(2)-(4)). It applies the Acts Interpretation Act 1901 as at a particular date to specified Parts (s 5).

All interactions are from the text: Agreement in Part 1A and s 18C; native title in s 13; Snowy in s 21(6); constitutional bases in ss 9, 9A, 10, 36-38, 60-62, 73C-73D, 119; state laws in ss 4(1), 22(2), 40, 59-62, 74A; EPBC in s 4(1); National Water Initiative in s 21(4)(c)(i); Productivity Commission in Part 3; PGPA in notes to ss 176, 215KA; Legislation Act in ss 33, 49, 57; Competition and Consumer Act via ACCC powers in ss 100A, 100D; Corporations Act in s 6A(2); binding Crown in s 12; Acts Interpretation in s 5.

The compilation is No. 34 to 1 July 2025, including amendments by Act No. 111 of 2023 (Water Amendment (Restoring Our Rivers) Act 2023). Key changes include:

• Increased environmental water target to 450GL by 31 December 2027 (s 85AC; Part 2AA, ss 86AA-86AJ; s 86ADB requires social/economic impact consideration for purchases). Annual reports on progress (s 85AB) and Snowy Scheme releases (s 85ABA) were added.

• One-off adjustments to cumulative balances for SDL resource units (s 71(1C)-(1E)).

• Enhanced Inspector-General powers: audits (ss 73L-73M), public warning notices (s 167A), information gathering (s 238), and standards for measuring water (s 215VA). Annual work plans (ss 215E-215G) and advisory panels (ss 215T-215TB) were introduced.

• Water markets information regime (Part 7A, ss 135A-135X), with mandatory trade reporting (s 135M), records (s 135N), Water Markets Data Standards (s 135J), and ACCC/Inspector-General powers (ss 135Q-135R, 135UB).

• Part 10AC gives the ACCC information powers for water markets (ss 239AJ-239AN).

• Amendment of Basin Plan to reflect 2023 changes (s 23B(8); s 49AA for disallowed amendments).

• Updated definitions (e.g. eligible tradeable water right in s 6A) and application (s 100F).

These changes were made to restore river health, improve water market integrity and transparency, strengthen compliance and enforcement, incorporate Indigenous matters (e.g. ss 3(fa), 22(3)(ca), 49A(4A), 85E-85F), and implement Basin Plan reviews. They respond to criticisms of slow environmental progress, market misconduct and inadequate metering/enforcement, as reflected in the Act's objects (s 3) and review provisions (s 50).

All changes are from the source: 2023 Act amendments noted in the compilation; 450GL in s 85AC and Part 2AA; reports in ss 85AB-85ABA; audits in ss 73L-73M; Part 7A in ss 135A-135X; Part 10AC in ss 239AJ-239AN; Indigenous in ss 3(fa), 22(3)(ca), 49A(4A), 85E-85F; Basin Plan amendments in ss 23B(8), 49AA.

The source text does not reference specific court cases, statistics or doctrine, so this section grounds claims exclusively in the Act's provisions and notes.

Controversies centre on the Basin Plan's sustainable diversion limits (s 23), with adjustments under ss 23A-23B allowing up to 5% variation (total Basin adjustment percentage; s 23A(5)). The 450GL environmental target (s 85AC; Part 2AA) has been controversial, requiring social/economic impact consideration (s 86ADB) and annual reports (s 85AB). Risk assignment (Division 4 of Part 2, ss 74-85A) allocates Commonwealth responsibility for policy changes and new knowledge (s 75), with payments to entitlement holders (ss 77, 83) if reductions occur.

Constitutional operation provisions (ss 9, 9A, 36-38, 60-62, 73C-73D, 119) clarify reliance on external affairs, corporations, trade and commerce, territories and referrals, addressing potential challenges under ss 99 and 100 of the Constitution (s 11). Reading-down (s 11) and exceptions (ss 38, 62) mitigate risks.

Enforcement controversies include unauthorised taking (ss 73A-73B), with aggravated penalties for environmental harm or tier 3 arrangements (s 73B(1)(e)). Restrictions on action (s 73E) require notice to state agencies. The Inspector-General's powers (Parts 9A, 10AA, 10AB) include audits (s 73L), entry (ss 223-233H), information gathering (ss 238-239) and inquiries (ss 239AA-239AH), with privilege preserved (ss 222A, 236, 239AH).

Water markets controversies led to Part 5 (Water Markets Intermediaries Code; s 100G) and trust accounting (ss 100R-100X), with ACCC powers (ss 100ZA-100ZG, 239AJ-239AN). Public warning notices (ss 100ZA, 167A) and relinquishment orders (s 164A) address misconduct.

The Googong Dam Area is treated as in the ACT (s 63A). Transitional plans (Part 10A) vest assets/liabilities (ss 239C-239F) and continue instruments (ss 239N-239S).

Court jurisdiction is in Federal Court, Federal Circuit and Family Court (Division 2) or state/territory courts (s 138), but the latter lacks jurisdiction against states (s 139). Injunctions (s 140), declarations (s 144), penalties (s 147) and undertakings (s 163) are available. No cases are cited as the source text contains none.

All points are from the text: limits in s 23A(4); target in s 85AC; reports in s 85AB; constitutional provisions in ss 9-11, 36-38, 60-62, 73C-73D, 119; enforcement in ss 73A-73E, 73L-73M, Part 8; markets in Part 5; Inspector-General in Parts 9A, 10AA, 10AB; privileges in ss 222A, 236, 239AH; Googong in s 63A; transitional in Part 10A; jurisdiction in ss 138-139.

Most practitioners miss that the Basin Plan's sustainable diversion limits (s 23) can be adjusted by up to 5% under s 23A without full amendment processes (s 23B), but the total Basin adjustment percentage (s 23A(5)) is cumulative and capped—overlooking this has led to compliance disputes. The long-term annual diversion limit includes temporary diversion provisions (item 7 of table to s 22(1)), which must reduce to zero over 5 years (s 24(5)), but fresh determinations are barred unless limits reduce >5% (s 24(6)).

The Inspector-General's information powers (s 238) and entry (Part 10AA) apply to state agencies, but s 73E restricts action under Parts 8 or 10AA for ss 73A/73B contraventions unless the state agency is notified (s 73E(1)) and either withdraws or requests action (s 73E(3)). This "state first" protocol is often misunderstood, delaying federal enforcement.

Water Markets Intermediaries (s 4(1)) include platforms and advisers (paras (d)-(f) of definition), not just brokers, triggering trust accounts (s 100R) even for non-financial products (s 6A(2)). The code (s 100G) can incorporate external standards (s 100H), and ancillary contraventions (s 100N) operate independently of s 154A.

Critical human water needs (Part 2A) override the Basin Plan in Tier 3 (s 86E), but conveyance water (s 86A(4)) must be reserved under the reserves policy (s 86D(1)(c)). The 450GL target (s 85AC) is separate from SDL adjustments, with social/economic consideration mandatory for purchases (s 86ADB), yet many assume it's subsumed in the Basin Plan's 2750GL benchmark (note 2 to s 85AC).

The Authority's power to require information (s 222D) from agencies is broad (para (b)(ii)), but excludes residential premises without consent (para 220(1)(b)). Privilege is preserved (s 222A), but obstruction (s 222C) carries a 100-unit civil penalty—often overlooked in compliance audits (s 73L).

Transitional vesting (ss 239C-239F) excludes River Murray Operations and Living Murray assets (ss 239D-239E), but liabilities may still transfer if held by the Commission (s 239F(4)). Certificates (ss 239G-239H) facilitate registration, but stamp duty exemptions (s 239U) require ministerial certification.

The Act's reading-down (s 11) and exceptions (ss 38, 62) are crucial for constitutional validity, yet rarely cited in challenges to trading rules (ss 26, 97). Annual effectiveness analysis (s 52A) and reviews (s 50) can trigger amendments affecting accreditations (s 48(8); s 64(1)), ceasing them after 3 years unless extended (s 64(2)-(4)).

These gotchas justify specialist advice: the 5% adjustment cap is not per-plan but aggregate (s 23A(4)); intermediaries' "best interests" obligation (s 100G(2)(a)) mirrors fiduciary duties but is code-specific; and Inspector-General inquiries (s 239AA) can run parallel to state processes without abrogating privilege (s 239AH).

To comply, first identify if you are a Basin State agency, water user, infrastructure operator, intermediary, or Commonwealth entity. For Basin States, prepare or amend water resource plans consistent with the Basin Plan (s 55), incorporating sustainable diversion limits (s 22(3)(b)), environmental watering (s 22(3)(e)), metering (s 22(3)(i)) and Indigenous matters (s 22(3)(ca)). Submit for accreditation (s 63); if refused, address Authority recommendations (s 63(4)). Report water availability, take, allocations, trading and compliance annually (s 71), including action plans for over-extraction (s 71(1)(h)).

Water users must not take water inconsistently with the Basin Plan (s 35) or state plans (s 59), or exceed allocations. Hold valid entitlements (s 4(1)); comply with trading rules (s 26; item 12 of table to s 22(1)). For reductions, claim payments if attributable to Commonwealth share (ss 77, 83), providing information under s 77A. Meter use where required (s 22(3)(i); s 5 of regulations may limit to stressed resources).

Infrastructure operators (s 7) must comply with water charge rules (s 92) and market rules (s 97), including transformation arrangements (s 97(3)). Maintain records for ACCC monitoring (s 99). Intermediaries must adhere to the Water Markets Intermediaries Code (s 100M), maintain trust accounts (s 100R), notify the ACCC (s 100S), prepare statements and audits (ss 100V-100W), and avoid false information (s 100Y). Keep 5-year records of reasons, prices and prescribed matters for trades (s 135N).

The Authority complies by preparing the Basin Plan (s 41), consulting (ss 42-43A), reviewing every 10 years (s 50) or on request (s 50(2)), and advising on impacts (s 49A). Monitor effectiveness (s 52A), audit (s 73L) and coordinate watering (s 31). The Environmental Water Holder manages holdings per the environmental watering plan (s 105(4)), without unauthorised disposal (s 106), and reports annually (s 114).

The ACCC monitors charges (s 94), markets (s 99) and intermediaries (Part 5), issuing warnings (s 100ZA) and requiring information (s 100ZD). The Inspector-General audits (s 73L), issues notices (s 165), conducts inquiries (s 239AA) and reports (s 215Y). Respond to recommendations within 90 days (s 239AF(2)).

All entities must not contravene the Basin Plan (s 35) or plans (s 59), face enforcement (Part 8), and provide information when required (ss 126, 135F, 222D, 238). Consider Indigenous matters (s 3(fa)) and critical needs (Part 2A). Use the National Water Account (s 121) and standards (s 130) for data.

For compliance programs, implement regular assessments (s 169(1)(a)), train staff (s 169(1)(a)(iii)), and respond to notices (ss 133, 165, 222D, 238). Seek ACCC advice on fees (s 212(2)). Maintain privilege (ss 222A, 236, 239AH) but cooperate with audits (s 73L).

All steps are from the text: state plans in ss 54-71; user duties in ss 35, 59, 77, 83; operator rules in ss 92, 97; intermediaries in Part 5; Authority in ss 41, 50, 52A, 172; Holder in ss 105-106, 114; ACCC in ss 94, 99, Part 5; Inspector-General in ss 73L, 165, 215C, 239AA; data in Parts 7, 7A; enforcement in Part 8; Indigenous in s 3(fa); critical in Part 2A; assessments in s 169(1)(a).