OUR WATER FUTURE · Our Water Future Discussion Paper: A Conversation with Territorians is the...

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DISCUSSION PAPER: A CONVERSATION WITH TERRITORIANS | 2015

OUR WATER FUTUREDiscussion Paper: A Conversation with Territorians

2015

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MINISTER’S FOREWORDIn the Northern Territory we enjoy a unique and enviable lifestyle. Without reliable supplies of water our lifestyle would not be possible. Water is the lifeblood of our healthy environment, essential to our society and culture, and contributes significantly to our wellbeing and prosperity. Prior to European settlement, the availability of water underpinned Indigenous trade routes, hunting and harvesting, ceremony, storytelling and survival. Now our cities, towns and communities, the pastoral and agricultural sectors, mining and tourism, as well as the productivity of aquaculture, industries and urban developments, all depend on an accessible and reliable supply of water. That is why Our Water Future Discussion Paper: A Conversation with Territorians

suggests an overarching vision for water in the Northern Territory as: ‘Water for Life and Prosperity’.

In the future, water will continue to drive the Territory’s economy and must be managed for the benefit of all. Territorians have the right to expect ongoing safe and secure supplies of high-quality water, along with the effective management of wastewater. The supply and management of our water should be sustainable and balance economic, social and environmental imperatives. In recognition of these imperatives, the Northern Territory Government is committed to the National Water Initiative (NWI), which has been the Council of Australian Governments’ principal water policy agreement since 2004.1 The NWI establishes a national approach to water resource management, setting key principles by which Australia manages, measures, plans for, prices, and trades water. In summary, the NWI represents a shared commitment by governments to increasing the efficiency of Australia’s water use, and is aimed at greater certainty for investment and productivity, for rural and urban communities, and for the environment.

In this discussion paper, the Northern Territory Government proposes a strategic, contemporary and effective approach to managing water resources, one that is consistent with the NWI but also reflects the unique challenges and opportunities of the Northern Territory. By using best practice water policy combined with sound scientific knowledge, a long-term strategic plan is being developed to manage our water resources over the next 50 years. Through careful planning and the efficient regulation of water use, we can achieve the sustainable development of the Northern Territory and maintain the values we so dearly enjoy. Territorians are invited to participate in the development of this vision. The discussion paper provides background information and poses key questions and strategies that will lead to good policy. The Northern Territory Government wants your help in guiding this important planning process. The development of this strategic plan for water will support an effective regulatory framework to help plan our water future.

Willem Westra van Holthe

Minister for Land Resource Management

1 For more information on the National Water Initiative, go to http://www.lrm.nt.gov.au/water/water_allocation/nwi

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HOW TO GIVE FEEDBACKOur Water Future Discussion Paper invites written comment on any aspect of the discussion paper and the strategic policy priorities it proposes. Your valuable ideas and suggestions will be collated and summarised in a feedback report to help shape a robust and sound strategic water plan. To ensure your submission is as effective as possible, please:

y clearly state your point of view and the corresponding section of the discussion paper or associated resource that it addresses; and

y suggest any alternatives you believe will result in a better outcome.

Please be sure to attach a covering letter with the names and contact details of the person or organisation making the submission. Where your approval is given, submissions will be published on the Department of Land Resource Management website or cited in other public documents.

Feedback is specifically encouraged on key elements of the discussion paper, including whether or not you agree with:

y The vision y The ten guiding principles y The three high level goals y The five objectives y The five strategic policy priorities and proposed outcomes y The near and longer term actions proposed

For further information on case studies, fact sheets and the Our Water Future feedback form, please refer to the website at www.nt.gov.au/water

Closing date for submissions is 30 June 2015. Please submit your comments by completing the Our Water Future feedback form:

y online : www.nt.gov.au/water y via email: [email protected] y via post: Water Directorate, Department of Land Resource Management PO Box 496

Palmerston NT 0831.

Thank you for taking part in the conversation.

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INTRODUCTION The Northern Territory covers approximately 1.35 million square kilometres. In its southern two-thirds, the climate is arid or semi-arid, while in the north, or the Top End, it is sub-tropical and subject to monsoonal influence. Sparsely populated by comparison with elsewhere in Australia, much of the Territory is also relatively undeveloped. Until now, these two factors have limited the pressure on our water resources from extraction and pollution.

Future significant economic developments and population expansion within the Territory will place unprecedented pressure on our water supply. In addition, as the world’s population grows and developing countries transition to more developed economies, the demand for quality food and fibre also grows. The Northern Territory has an increasingly important role to play in helping meet this growing demand,2 for example through improving the productivity of our pastoral sector, expanding irrigated agriculture and developing new aquaculture ventures. Realising these opportunities will require water. Investment in on-shore petroleum and mining projects will similarly contribute to economic growth, yet also require access to water.

Our urban areas are critical for the prosperity and well-being of the Territory’s growing population. Cities and towns require reliable and safe water supplies that represent value for customers. Similarly, rural and remote communities need reliable water supplies for residents as well as certainty of supply for investment to be able to realise future economic opportunities. The population of the Northern Territory is forecast to rise from 235,200 in 2012 to around 450,000 by 2060.3 Darwin’s population is expected to grow from 180,000 to 250,000 over the same period. Planning for this growth must also account for forecast changes to our climate, which is expected to increase the variability of how much water is available to use, and to shift trends in water demand. 4 Satisfying the demand for safe and reliable public water for our cities, towns and remote communities will be a challenge unless we can find new ways to manage water through innovation, such as adopting demand management strategies,5 and by carefully reviewing the way we value water and plan its allocation.6

Our Water Future Discussion Paper: A Conversation with Territorians is the start of a wide-ranging dialogue about all aspects of water in the Northern Territory, from the science of sustainably managing the resource to the roles everyone can play in conserving it. The conversation should embrace those issues already in the public eye, such as the use of water in mining and petroleum (including hydraulic fracturing for on-shore shale gas wells), the ‘first-in-first-serve’ policy for water allocation and the concept of strategic reserves for indigenous economic development and regional employment. In addition, the conversation should also embrace less prominent issues, such as water pricing, the need for expanded water research, and opportunities for innovation in water management, for example the potential for storing surface waters underground, otherwise called conjunctive use schemes.

The purpose of the conversation is to develop the Territory’s first overarching strategic plan for water. The working title for the strategic plan is Our Water Future Strategic Plan. The plan should be robust enough to inform legislative reform, while also framing effective means of regulating water use so as to enable its sustainable management. Many benefits will accrue from science and innovation, but they will become a reality only under the right policy framework.

2 http://haveyoursay.nt.gov.au/developing-the-north 3 http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/13D196FB0DBECC3BCA257C2E00173FAD/$File/32220_2012%20

%28base%29%20to%202101.pdf4 http://www.bom.gov.au/state-of-the-climate/ 5 http://alicewatersmart.com.au/6 http://lrm.nt.gov.au/water/water_allocation/plans

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While our knowledge of the Northern Territory’s water resources is built on research,7 and further research programmes are planned, there is still much to learn in order to be able to sustainably manage our water. This discussion paper provides a roadmap to the broad topics and issues we suggest be considered in the strategic plan, and directs readers to information posted on the web. Importantly, the discussion paper is also a portal through which the community can speak directly with government via written submissions.

The proposed framework for the strategic plan for water is presented on the following page and forms the basis for this discussion paper. The framework includes a vision for water in the Territory based on ten guiding principles (Table 1) developed from best practice water policy. Goals and Objectives are presented and Strategic Policy Priorities outlined. These priorities are suggested to guide but not constrain the discussion.

A glossary is provided (Table 2) to explain terms that readers might find unfamiliar.

7 http://www.lrm.nt.gov.au/water/ground and http://www.lrm.nt.gov.au/water/surface

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OBJECTIVES

GOALS

VISION

Proposed Framework forOur Water Future Strategic Plan

Water for Life and Prosperity

Water for a prosperous economy

Safe, secure drinking water

Healthy catchments, aquifers and aquatic

ecosystems

1. Water is the property of the Crown and its use involves a mix of private and public demands and responsibilities.

2. The Northern Territory Government is responsible for ensuring the sustainable management of water resources for the bene�t of Territorians.

3. Water as a resource is fundamental to driving economic growth. 4. Water has an intrinsic value and must be managed accordingly.5. Water stewardship is the responsibility of all Territorians.6. Indigenous social, spiritual and customary values of water are recognised.7. Catchments, aquifers and aquatic ecosystems must be protected.8. An adaptive management approach is essential in order to accommodate a

variable water cycle and a changing climate.9. Territorians have the right to safe, secure drinking water10. Territorians have the right to sustainable and digni�ed sanitation

A prosperous economy supported by the sustainable use of water resources

An informed community engaged and empowered to protect, conserve and enjoy Northern Territory water resources

Knowledge from research and innovation is adopted in water policy, management and practice

Environmental and cultural values of water are understood, protected and maintained

Access to a secure, resilient water supply and sanitation is assured for a growing population

GUIDING PRINCIPLES

STRATEGIC POLICY PRIORITIESManage competing demands for water

Foster water stewardship

Build water knowledge, research and innovation

Enhance assessment and monitoring of water resources

Ensure resilient water supplies and sanitation

for Our Water Future Strategic PlanPROPOSED FRAMEWORK

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Water sustains life and is vital for people and the environment, and allows the economy to prosper. Water for life and prosperity will only be achieved however, by sustainably managing our water resources to meet the competing demands of a healthy environment, a growing population and a prosperous economy.

Our Guiding Principles Underpinning the vision are guiding principles that reflect our values and govern the decisions we can make. There are ten principles which we suggest can help to guide our planning. Each principle is explained in brief below, and in more detail at the end of the report in Table 1. The proposed guiding principles for Our Water Future Strategic Plan are:

1. Water is the property of the Crown and its use involves a mix of private and public demands and responsibilities

2. The Northern Territory Government is responsible for ensuring the sustainable management of water resources for the benefit of Territorians

3. Water as a resource is fundamental to driving economic growth 4. Water has an intrinsic value and must be managed accordingly5. Water stewardship is the responsibility of all Territorians6. Indigenous social, spiritual and customary values of water are recognised7. Catchments, aquifers and aquatic ecosystems must be protected8. An adaptive management approach is essential in order to accommodate a variable water cycle

and a changing climate9. Territorians have the right to safe, secure drinking water10. Territorians have the right to sustainable and dignified sanitation

WATER FOR LIFE AND PROSPERITY

Our VisionTo frame this water planning process, we propose an overarching vision for water in the Northern Territory:

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Water for a prosperous economy

The goal is to sustainably develop our water resources so that we use water efficiently and productively to grow the economy. Water allocation planning, based on science or a precautionary approach if the science is not available, sets allocations from the consumptive pool within sustainable limits. The highest priority in water planning is to ensure there is sufficient water for our cities, towns and remote communities, and that the water supplied is being used efficiently. A further goal is the sustainable use of fresh groundwater and surface water resources to provide water for pastoralism, agriculture, aquaculture, mining, petroleum and other industries.

Safe, secure drinking water

The goal is to ensure that drinking water supplies are well-managed, protected from the impacts of other users, sustainable, accessible and safe to drink. We must have confidence that appropriate and effective policies, frameworks and practices are in place to ensure that both remote and urban supplies of drinking water remain safe from microbiological contamination, which is the highest risk to public health.8 Although the chemical quality of water varies dramatically across the Territory, public water supplies are consistent with the health objectives of the National Health and Medical Research Council’s Australian Drinking Water Guidelines.9 It is important that everyone has confidence in the safety of drinking water and that there is transparency as to the quality of drinking water being provided.

8 https://www.nhmrc.gov.au/guidelines-publications/eh529 http://www.powerwater.com.au/__data/assets/pdf_file/0019/56080/adwqr2012.pdf

Goals and ObjectivesIn developing Our Water Future Strategic Plan, it is suggested that three high-level goals guide the development of objectives linked to strategic priorities and actions. Such goals must accommodate policies and reform as necessary.

Our GoalsThe proposed high-level goals for Our Water Future Strategic Plan are:

WATER FOR A PROSPEROUS

ECONOMY

SAFE, SECURE

DRINKING WATER

HEALTHY CATCHMENTS, AQUIFERS AND

AQUATIC ECOSYSTEMS

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Healthy catchments, aquifers and aquatic ecosystems

The goal is to maintain healthy catchments, aquifers and aquatic ecosystems. Our water-dependent ecosystems, inland waterways and fresh groundwater aquifers are not only unique and greatly valued, but in the north, are intimately linked with coastal ecosystems: estuarine and marine environments and fisheries. Fresh water aquifers are the primary source of water across much of the Northern Territory. Water stewardship and community engagement in the planning process can help to ensure environmental values are agreed and maintained over time across all of these environments, and that everybody plays a part in conserving our water resources.

Our ObjectivesThe objectives of Our Water Future Strategic Plan will help to achieve the high-level goals. In turn, the five objectives help us formulate the five strategic policy priorities, and can be thought of as the outcomes we would like to see from the high-level goals. The objectives are:

1. Territorians are able to enjoy a prosperous economy through the sustainable use of water resources

2. An informed community engaged and empowered to protect, conserve and enjoy Northern Territory water resources

3. Knowledge from research and innovation is adopted in water policy, management and practice4. Environmental and cultural values of water are understood, protected and maintained5. Access to a secure, resilient water supply and sanitation is assured for a growing population

The five specific objectives are the foundation to the five proposed Strategic Policy Priorities.

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STRATEGIC POLICY PRIORITIESFive priorities to help focus the strategic planning were developed and follow from the objectives:

1. MANAGE COMPETING DEMANDS FOR WATER

2. FOSTER WATER STEWARDSHIP

3. BUILD WATER KNOWLEDGE, RESEARCH AND INNOVATION

4. ENHANCE ASSESSMENT AND MONITORING OF WATER RESOURCES

5. ENSURE RESILIENT WATER SUPPLIES AND SANITATION

Each of these five priority areas have been developed with actions proposed under each area and are divided into near term and long term timeframes.

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STRATEGIC POLICY PRIORITY 1:MANAGE COMPETING DEMANDS FOR WATER

ContextSustainable development of the Northern Territory’s water resources will provide significant opportunities for economic growth, especially in regional and rural areas. The precautionary approach to water resource management has served the Territory well to date, by ensuring supplies have been used sustainably. In light of expected population growth and increased development pressures, reliable science and adaptive management will be necessary to provide for future sustainable development. This approach depends on a rigorous means of allocating water to competing uses.

The NT Water Allocation Planning Framework is based on the available science, and sets water allocations for environmental and other public benefits as a first priority. 10 Allocations for other uses are subsequently made from the remaining available water with priority consideration given to water for urban centres and remote communities. When relevant science is not available, contingency allocation rules for water resources are set for two different climates of the Northern Territory: a humid ‘northern zone’ (referred to as the 80/20 rule) and the southern ‘arid zone’. This contingency is a precautionary approach, and described in more detail below.

Security of water supplies for the development of the pastoral, agricultural, mining and petroleum sectors is critical. Through a clearer understanding of their needs, it may be possible to tailor sources and water quality criteria to suit individual sectors, thereby minimising competition for the same resource. It is envisaged that agricultural development will continue to concentrate around existing enabling infrastructure (such as transport), with opportunities for new agricultural precincts through the development of ground water systems, conjunctive use of groundwater and surface water systems, and off-stream storages.

Outcomes y Cultural, social and environmental needs are accounted for in the sustainable development of

water resources y Economic output is increased by the sustainable development of water resources y Water security is ensured for cities, towns and remote communities

10 http://www.lrm.nt.gov.au/water/water_allocation

Objective: Territorians enjoy a prosperous economy supported by the sustainable use of water resources

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Key Actions

Near Term y Establish Water Allocation Plans based on risk for those water supply systems requiring closer

management y Implement risk-based, periodic reporting against the objectives defined in water allocation plans y Develop options for more sophisticated water trading markets that include for the allocation of

water from the consumptive pool at different levels of risk y Develop options for a Strategic Reserves Policy to provide water for future population growth in

urban centres, economic development (including for Indigenous enterprises and other economic ventures that benefit regional economies) or for improving water security for existing licence holders

Longer Term y Develop options to recover and fund the costs of water resource management from water

abstraction and by other mechanisms, based on national and international practice y Extend the development of Water Allocation Plans based on risk and development potential

DiscussionThe Territory’s ‘northern zone’ requires that at least 80 per cent of surface water flow or annual groundwater recharge be allocated for environmental and other public benefits. In the ‘arid zone’, where surface water flows and recharge are sporadic, at least 95 per cent of surface water flow must be reserved. Furthermore, total groundwater extraction over a period of 100 years is not to exceed 80 per cent of the total aquifer storage at the start of extraction. Allocations are reviewed annually to provide for seasonal, medium term and longer term climate variability.

The Water Act11 provides for the declaration of Water Control Districts (WCDs) where increased management of water is required, and for Water Allocation Plans (WAPs) to be developed. WAPs establish how water will be shared. They describe the area and water resource to which a plan applies, as well as the objectives, strategies and performance indicators of the plan. WAPs also detail the rules and operating mechanisms that ensure water is shared among the beneficial (environmental or public) uses in the plan area. They outline monitoring programs to evaluate the performance of the plan and to inform a review. WAPs have been declared for Alice Springs, Katherine (Tindal Limestone Aquifer),12 Ti Tree and Western Davenport and are being prepared for Berry Springs, Howard East, the Great Artesian Basin, Mataranka (Tindal Limestone Aquifer) and the Oolloo aquifer systems.

Water extraction licences are issued based on a ‘first-in-first-serve’ basis. Water trading is permitted within a defined management area, without changing the total volume of water taken. To date, water trading in the Territory has been limited. However, it is expected that future economic opportunities and development will significantly increase the need to trade water. Increased economic prosperity requires that efficient water markets are ready to operate when demand for water approaches the available consumptive pool, that is, the maximum amount of water available for use in a particular area. Such development may be practical only with a change in policy and legislation reform, enabling water entitlements and market mechanisms to allocate water.

11 http://www.dcm.nt.gov.au/strong_service_delivery/supporting_government/current_northern_territory_legislation_database12 http://www.lrm.nt.gov.au/water/water_allocation/plans

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There has been significant discussion around Strategic Indigenous Reserves. Some advocate flows for cultural objectives, while others advocate for setting aside water to supply possible future Indigenous economic developments. The needs of Indigenous cultural values and other environmental values are already assured when determining the consumptive pool. The discussion paper suggests a broader strategic reserve be withheld in order to cover a range of outcomes determined at the discretion of the Minister. Such outcomes might include Indigenous economic development, industry-specific developments, increasing the reliability of existing licences for extraction, or increasing future allocations for public water supplies.

Water allocation planning now includes water used for mining and petroleum activities, although these industries are regulated by industry-specific legislation. An independent inquiry into hydraulic fracturing in the Northern Territory was conducted by Dr Allan Hawke in 2014. Dr Hawke consulted extensively with the community, interested stakeholders and experts, and considered reports, knowledge and industry practices from interstate and overseas. Dr Hawke presented his report on the Inquiry to the Territory Government in November 2014. The Northern Territory Government has accepted the report, which was released to the public in February 2015.13 The Inquiry found that the environmental risks associated with hydraulic fracturing can be managed effectively subject to the creation of a satisfactory regulatory regime. The Government is committed to developing a best-practice regulatory model that is in line with community expectations. The report recommends where possible, to minimise or eliminate the use of fresh groundwater for hydraulic fracturing, by turning to more brackish aquifers and examining options for reuse. The report also highlights the importance of baseline data on groundwater and evidence-based water allocation.

13 http://www.hydraulicfracturinginquiry.nt.gov.au/; and for public submissions see http://www.hydraulicfracturinginquiry.nt.gov.au/public_submissions.html

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STRATEGIC POLICY PRIORITY 2:FOSTER WATER STEWARDSHIP

ContextWater stewardship defines how we manage our water resources now and on behalf of future generations. It is a practice that is critical to the Territory’s water future. Fresh water is a finite and vulnerable resource, essential to sustain life, economic development and the environment. Linked to freshwater flows from rivers and aquifers are our estuarine and coastal waters, which are mostly pristine, highly productive and attractive as recreational destinations. Water has an intrinsic value that enhances quality of life and environment, as well as an economic value which supports economic growth, the latter being in competition with the former. Water stewardship involves everyone being accountable for and engaged in protecting, managing and using our water resources wisely.

Outcomes y Water is valued in supporting lifestyle, culture and well-being y Water is conserved, used efficiently and productivity is increased y Water stewardship is embraced by all

Key Actions

Near Term y The NT Catchments Advisory Committee14 will assist in the development of an action plan

to promote water stewardship and empower stakeholders in catchment protection, water conservation, water efficiency strategies and solutions to water issues

y Through stakeholder engagement, recognise Indigenous social, spiritual and customary values in water planning

y Establish water conservation principles for building liveable and water resilient cities, including urban, regional, rural and remote communities

y Develop a planning framework that covers both public and private water supplies for water usage efficiency, adaptation to seasonal variability, and the longer term impacts from a changing climate for the Greater Darwin area

14 http://www.lrm.nt.gov.au/water/nt-catchments-advisory-committee

Objective: An informed community, engaged and empowered to protect, conserve and enjoy Northern Territory water resources

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Longer Term y Coordinate research effort and partnerships that pursue innovation in water conservation, water

efficiency and productivity, to benefit the Territory environment and economy y In cooperation with the agricultural, mining and petroleum sectors, develop a strategy to improve

water conservation, efficiency and productivity y Encourage appropriate land use activities and practices within catchments so as to protect water

quality and environmental flows

DiscussionEveryone has a responsibility to manage water in ways that support our lifestyle, culture and well-being. Government has a clear duty to be a good water steward by providing leadership in how our water resources are protected and sustainably managed.

Water conservation includes how we use water efficiently and in ways that increase productivity. To date, water has been a low-cost item in the Territory in comparison to other jurisdictions, mainly as a result of our relatively low level of development. This means there is a significant opportunity for new technologies and innovations to improve the efficiency and productivity of our businesses by using less water, thereby bolstering sustainability.

Similarly, the liveability of our urban environments can be enhanced and the cost of living reduced through changed behaviour, technological innovation and more progressive, customer-focused regulation of the water and sewerage utilities. The Living Water Smart – Darwin Region programme by the Power and Water Corporation seeks a 25 per cent reduction in Darwin’s annual consumption.15 While this is certainly ambitious, it is also achievable. A related program called Alice Water Smart demonstrates what is meant by water stewardship.16 The Alice Water Smart Plan was implemented by a consortium, led by Power and Water Corporation in collaboration with the Department of Land and Resource Management, Arid Lands Environment Centre, Alice Springs Town Council and Tourism NT. The project helped Alice Springs reduce its water use by 1600 million litres per year, the equivalent of two months average water supply.

The Darwin Harbour Water Quality Protection Plan (WQPP) provides another example of water stewardship in practice. 17 The WQPP is a useful resource for anyone wanting to understand how to support sustainable development, and highlights how several agencies and stakeholders can work together to manage water quality in Darwin Harbour.

15 http://www.livingwatersmart.com.au/ 16 Case Study 4: Alice Water Smart, see www.nt.gov.au/water17 Case Study 1: Darwin Harbour Water Quality , see www.nt.gov.au/water

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STRATEGIC POLICY PRIORITY 3:BUILD STRATEGIC WATER KNOWLEDGE, RESEARCH AND INNOVATION

ContextThe economic opportunities arising from the sustainable use of water will be realised only through strategic investment in research, the transfer of knowledge into practice and by encouraging and adopting innovation. Research and innovation underpins good policy development and is essential when using an adaptive management approach to water planning. In all water resource planning there is an element of uncertainty and this requires flexibility and a responsive approach. Adaptive management aims to reduce uncertainty over time by continuously monitoring the resource and adjusting management actions accordingly. Such an approach seeks to allocate water at a sustainable level, thus limiting impacts on water-dependent ecosystems to acceptable levels. Key research priorities to support adaptive management in the Northern Territory include: defining the water requirements to satisfy and sustain environmental and cultural values; identifying new freshwater aquifers and more closely characterising existing ones; estimating recharge of arid-zone aquifers; defining and tracing the interconnections between surface and groundwater systems; best-practice irrigation systems and the efficient domestic use of water.18

Outcomes• Protect ecological functions and environmental values through expert evaluation backed by

scientific research, or by the use of the precautionary principle where the science is not available• Increased productivity and economic output in agricultural and other water intensive sectors

through research and innovation• Increased urban water efficiency and resilience through innovation and technological advance

Key Actions

Near Term y Build on existing ecological research, and enhance scientific assessment and monitoring

programmes with the aim of better understanding the resource and supporting the sustainable development of the Territory’s water resources

y Establish a network of experts to periodically review the available scientific evidence; data from water resource monitoring and water extraction, to inform decision making

y Extend the programme for assessment of soil and water to a regional approach in order to build knowledge of fresh water aquifers and to support new investments in pastoral, irrigated agriculture, mining and on-shore petroleum

18 http://www.lrm.nt.gov.au/__data/assets/pdf_file/0003/356403/WaterResNT_Factsheet_Understanding-GW.pdf; http://www.lrm.nt.gov.au/__data/assets/pdf_file/0005/356405/WaterResNT_Factsheet_What-is-SW.pdf

Objective: Knowledge from research and innovation is adopted in water policy, management and practice

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y Evaluate and adopt where practical innovative approaches to creating water-sensitive urban environments

y Develop a plan for the long-term monitoring and management of remote community water supplies

y Establish collaborative partnerships with the mining and on-shore petroleum sectors and Commonwealth agencies, to improve their knowledge of regional groundwater systems in prospective geological basins

Longer Term y Improve the coverage of NT mapping of groundwater systems and water quality19

y Investigate options for off-stream storage and the conjunctive use of ground and surface waters y Establish the Northern Territory as a global centre of excellence for humid and arid water

resources knowledge, research, conservation, productivity and adaptation

19 For existing mapping of Territory groundwater and river basins see www.nt.gov.au/water

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DiscussionStrategic research and a culture of innovation are critical to meeting the likely environmental, social and economic challenges of the future. As our population grows and water use rises in line with increased economic development, we must have better knowledge of our water resources and ecology as well as the likely impacts of increased climatic variability. Research must especially focus on catchments, rivers and fresh groundwater resources that are under pressure from development. The problem is, quite a lot of the published research does not apply to Territory environments, meaning there is a priority need for targeted research in and of the Northern Territory to sustainably manage water.

One example where such baseline research is being conducted is the Daly River. Ecological research has guided water planning and allocation outside of the Daly River Basin by establishing minimum flows to support ecological objectives. Ongoing assessment of the available science and the development of a strategic plan for further research will allow us to better understand how this system is responding to the water that is being taken out.

In a tropical and/or arid climate, the challenges to providing good quality water that is safe to drink may differ from those in temperate climates. The differences in climate require environment-specific research, and this must be highlighted on national agendas regarding water quality for drinking, recycling and recreation.

There are examples of other research that is of benefit to the Territory. However, the number of nationally-funded research programmes concerning strategic priorities in water resource management, water services or water and public health, are limited. Some examples include:

y The Australian, Northern Territory, West Australian and Queensland Governments among others, have supported the research by Tropical Rivers and Coastal Knowledge (TRaCK)20 consortium led by Charles Darwin University. The sections of this work that relate to water will continue through the National Environmental Research Program (NERP) Northern Australia Hub, which will focus on the terrestrial, freshwater and estuarine ecosystems of the northern savannah landscapes

y Significant water and health-related research has been funded under the National Water Commission, the National Health and Medical Research Council, the Menzies School of Health Research and a number of past Cooperative Research Centres, highly relevant to the Territory’s challenges

y The Power and Water Corporation and Indigenous Essential Services fund research priorities through Water Research Australia, the Australian Research Council, the Water Services Association of Australia and Charles Darwin University, among others, which are concerned mainly with matters relating to service provision, water quality and public health

20 http://www.track.org.au/

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STRATEGIC POLICY PRIORITY 4:ENHANCE ASSESSMENT AND MONITORING OF WATER RESOURCES

ContextA sound knowledge of the water resource is imperative to understanding the health of water-dependent ecosystems. Collecting medium to long-term continuous data will support our evolving understanding of those water systems, and, consequently, of current and future water availability. Using research and technology to create innovative ways to monitor and assess water resources is critical to meeting our objectives for water quality, environmental flows and efficiency of use.21

Outcomes y Satisfactory monitoring means the community has confidence in how water resources are being

managed y Expert opinion is valued in reviewing scientific data as a check on the health of water resources

and their potential for sustainable development y Water users, landholders and investors have access to the available information on water

resources22

Key Actions

Near Term y Fresh groundwater quality monitoring programmes are expanded y Periodic water quality reports are released for the Daly River Basin and Roper River Basin y Periodic risk-based review of environmental values for all major water bodies with licenced waste

discharges y Periodic reporting of water use by the mining and petroleum sectors

Longer Term y Regional monitoring of ground water systems is enhanced to inform adaptive management in a

changing climate and to consider long-term interactions between surface water and groundwater systems

y Apply a risk-based approach to obtaining water extraction data from users y Establish plans for monitoring saltwater intrusion to strategic freshwater coastal aquifers

21 http://www.lrm.nt.gov.au/__data/assets/pdf_file/0006/356388/Factsheet_Beneficial-Use-Declarations.pdf22 For a map of Water Quality and Beneficial Use Declared Areas go to www.nt.gov.au/water

Objective: Environmental and cultural values of water are understood, protected and maintained

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DiscussionThe Controller of Water Resources is responsible for the assessment of the Territory’s water resources. Water monitoring programmes are designed to inform water allocation, planning, flood forecasting and regulation. Data collected from monitoring programmes includes surface and ground water levels, flows and quality, rainfall and basic water chemistry. Computational methods and models are used to establish surface water flows and the response of groundwater levels to recharge and extraction, including the interconnection between surface and underground waters. Monitoring programmes include the basins of the Darwin, Adelaide, Katherine, Daly, Roper and Todd Rivers. Additional monitoring is undertaken to a lesser extent in the Victoria, McArthur, Baines and Keep rivers. The Power and Water Corporation does extensive monitoring of surface and groundwater aquifer systems used for public water supplies and has a lead role in protecting specific catchments such as Darwin River Dam.

Groundwater extraction in the greater Darwin area is under increasing pressure because the resource has to meet several demands, including Darwin rural living, augmenting the urban water supply and irrigated agriculture. Scientific evidence is being collected to better understand how much groundwater is being extracted, and to assess the potential impact of extraction on current and future water users, environmental flows and groundwater-dependent ecosystems.23 A key factor will be to find out how much water is being drawn from unlicensed groundwater bores, which are not required to report extractions. 24

The Aquatic Health Unit of the Department of Land Resource Management monitors and reports on the health of aquatic environments. The Department collaborates with research partners to improve monitoring and to contribute to the knowledge base. The Unit’s activities focus on the quality of Darwin Harbour water and sediment, and the quality of the catchment’s perennial streams, which are fed by groundwater. Water quality is monitored in the Katherine, Daly and Roper Rivers, however the monitoring programmes are not fully developed. Water quality is also monitored in arid areas, including for high-value water dependant ecosystems.

The NT Government has provided $2.4M per annum in funding over the next four years for new land and water suitability assessment teams.25 One example is the Oolloo Planning Area, which demonstrates the importance of monitoring water resources in order to understand how best to develop the North. The region demonstrates how agricultural development can be fostered in areas away from those already established agricultural zones that are approaching full capacity. The Department of Land Resource Management is responsible for advising government on the potential suitability and productivity of the land, and whether it is appropriate for agricultural and economic development.

23 http://www.lrm.nt.gov.au/__data/assets/pdf_file/0009/354753/WaterResNT_Factsheet-working_Preventing-GW-Pollution.pdf24 http://www.lrm.nt.gov.au/__data/assets/pdf_file/0005/356387/Factsheet_Water-Extraction-Licence-FAQ.pdf25 Case Study 6: Resource assessment for growth and development, see www.nt.gov.au/water

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STRATEGIC POLICY PRIORITY 5:ENSURE RESILIENT WATER SUPPLIES AND SANITATION

ContextWater supply and sanitation services for urban centres and remote communities are regulated by:

y an operating licence (though not in all cases); y economic regulation that establishes tariffs and charges; y standards of service for customers; y drinking water quality objectives; and y environmental objectives, including for the release of treated effluent.

Changes in regulation nationally and internationally have focused on value for customers and their willingness to pay for the services provided. Such an approach requires deciding between risk, reliability and affordability. It is likely that the future of water utility services will involve increased opportunities for private sector investment and service provision. This may occur alongside or in competition with services previously provided by monopoly utilities. Future models for investment and service provision will require allocation of water to achieve a high level of security. Also, it is important that developments in a catchment (or that may impact on an aquifer) do not compromise the quality of water for drinking water supplies. Any changes in the regulatory framework will need to consider how better outcomes for customers can be provided through integrated strategic planning, innovation and improved productivity. A key challenge will also be to define the role the water utility plays in water conservation, water efficiency and water reuse.

Outcomes y The community has confidence in the safety of their drinking water y Secure water supplies for cities, towns and remote communities, providing confidence for growth

and investment y Long-term plans in place for strategic water and sewerage infrastructure

Key Actions

Near Term y Develop a regulatory framework that considers the interdependencies between environmental,

urban planning, environmental health, social and economic outcomes y Develop a regulatory framework for public water suppliers to provide water conservation and

efficiency plans that aim to reduce water usage, build resilience for climate variability and enhance the productivity and sustainability of water in the urban environment

y Develop a regulatory framework for drinking water that reflects best practice y Establish a risk-based security strategy for remote community water supplies y Review strategic asset management planning for urban water supply and sewage infrastructure

Objective: Access to a secure, resilient water supply and sanitation is assured for a growing population

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y Review regulations for onsite wastewater management and introduce standards that consider industry and regulatory alignment, promote sustainability through cumulative impact assessment and provide confidence to consumers through assessment of risk

Longer Term y Consider independent economic regulation of water supply and sewerage utility services y Develop a collaborative water quality research plan that considers emerging hazards and the

forecast increase in the variability of climate y Strengthen strategic land use planning to protect drinking water supplies y Develop a strategic plan for the development of reticulated water supplies to service the

expanding Darwin Rural Area y Develop a regulatory framework that encourages innovation in ownership, funding, and operation

of sanitation solutions for infill and ‘out of sequence’ urban developments y Develop increased capacity for managing drinking water quality and supply security for remote

communities, outstations and homelands

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DiscussionThe Utilities Commission of the Northern Territory began regulating water supply and sewerage utilities in 2000 and this has remained relatively unchanged over the past 15 years.26 This regulation covers only major and minor urban centres and does not extend to remote communities or mining towns. The Utilities Commission’s role in regulating water supply and sewerage utilities relates mainly to licensing and some monitoring of compliance. The regulating Minister is the Treasurer, who sets prices for water supply and sewerage services, which are currently uniform across the Territory. The Treasurer may ask that the Commission monitor prices. The Essential Services Minister may request that the Commission monitor service standards. The Utilities Commission’s role in regulating the water and sewerage industry is more limited than its role in the electricity supply industry.

Through the not-for-profit Indigenous Essential Services Pty Ltd, the Power and Water Corporation applies the same pricing to remote communities, though it does not charge for water supply and wastewater services for remote public housing (estimated 5,000 properties). A key item for discussion, is the costs and benefits of introducing independent price setting for water supply and sewerage services. This might aid in delivering better customer value, and if introduced, whether this should extend to remote communities. Many utilities around Australia and internationally have successfully used price signals to encourage more frugal consumption of water. Such measures include passing on the full cost of water and ensuring that all consumers are charged for what they consume.

Territorians have a high level of confidence in the safety of their drinking water. This confidence is informed by the regular reporting of drinking water quality and other initiatives that address emerging risks. The current system of regulation predates the Framework for Managing Drinking Water within the Australian Drinking Water Guidelines. There are opportunities to improve community confidence in the safety of drinking water through more contemporary regulation.

Specific geographical areas are declared by the Minister for Essential Services as a water or sewerage supply licence area. For each water or sewerage supply service within a gazetted licence area, the Commission may grant only a single licence for each of the relevant services provided. A priority matter for discussion is a more modern regulatory framework that can allow competition, innovation and alternative levels of service within geographic areas.

The obligation to treat sewage effluent before it is released to the environment contributes significantly to the cost of sewerage. Long-term planning and robust policy frameworks are needed to support the level of investment that is required to build sewage treatment plants and other measures to help meet current and future environmental obligations. This could include the willingness to pay for improved environmental outcomes. Similarly, the cumulative impact of on-site sewage treatment requires long-term planning in order to establish if and when a sewage treatment facility and associated sewerage network is required to prevent environmental impacts on groundwater or surface water systems.

Berry Springs Dolostone Aquifer in the Territory’s north is a good example of how complex long-term strategic planning for water and development can be. The aquifer provides water for rural residents, the Territory Wildlife Park and Berry Springs Recreation Reserve as well as for tourism and irrigated horticulture. Overlying the aquifer, the largely undeveloped Berry Springs District Centre is subject to growing pressure to rezone its existing eight hectare allotments so as to allow subdivision into two hectare blocks. While the move may increase choice in rural housing, the sustainability of the aquifer must be carefully managed.27

26 Case Study 8: Regulation of our public water supply and sewage services , see www.nt.gov.au/water27 Case Study 7: Strategic Land Use and Infrastructure Planning Issues (Berry Springs), see www.nt.gov.au/water

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In the future, increased variability of our climate is expected to limit the availability of water as well as shift trends in water demand.28 Under these conditions, strategic planning is imperative to maintain safe, secure water supplies.29 The impacts of a variable climate on demand are difficult to predict, even though increased temperatures and evaporation are expected to increase the demand for water. Water managers certainly need a greater understanding of the water resource to manage this situation, but they also need reliable forecasts of the potential changes to supply and demand. For example, greater demand means a given water source may fail in some communities.30 Taken together, less available water and increasing demand mean fiercer competition for water among users. While few competitors operate near most remote communities, this could change in the future. Whether a source is compromised depends on the adaptive responses available to the water user, with the range of options determined largely by water policy. Water demand management for example, is one way of adapting to a warmer environment, and is already used in areas where water is scarce or the cost of providing water is high.

28 Case Study 4: Alice Water Smart, see www.nt.gov.au/water29 Case Study 2: Planning for Climatic Variability – Darwin’s Water Supply, see www.nt.gov.au/water30 Case study 3: Planning for Climatic Variability for Remote Communities in the Arid Zone, see www.nt.gov.au/water

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No Guiding Principle Description

1 Water is the property of the Crown and its use involves a mix of private and public demands and responsibilities

Water use brings with it a mixture of rights and responsibilities. Ownership of water in the Territory is vested in The Northern Territory of Australia (or The Crown) under the Water Act. On behalf of The Crown, the Government has an obligation to provide reasonable water and sanitation services for urban and remote communities (incorporating measures to conserve water use). Government also defines the responsibilities of commercial users: to use water sustainably, efficiently and productively and to provide a reasonable benefit to Territorians for the use of the resource.

2 Sustainable management of water resources

The Northern Territory Government has a duty to protect and sustainably manage the Territory’s water resources for the benefit of Territorians, for current and future generations. The Water Act provides the legal framework for both the quality and quantity aspects of water resource management. The Act recognises that water is a valuable resource by licencing the discharge of waste (generally used and treated water) to the environment. The Northern Territory Government is responsible for industry-specific legislation for mining and petroleum activities that cover access to and diversion of water, and for protection of water quality on the respective lease or tenement. Changes to the scope of exemptions for mining and petroleum industries from the Water Act (while preserving efficient and effective regulation for those industries) may have some merit, in order to establish a best-practice regulatory framework for water resources.

3 Water as a resource is fundamental to drive economic growth

Water is essential to support a growing urban population and a prosperous economy. The sustainable development of the Territory’s water resources will provide significant opportunities for economic development through aquaculture and irrigated agriculture, especially in remote, regional and rural areas. Irrigated agriculture development will likely be determined by the availability of arable soils close to water resources and economic infrastructure, such as energy and transport networks.

4 Water has an intrinsic value and must be managed accordingly

Water supports our quality of life and has an intrinsic value in the natural environment and an economic value in all its competing uses, including the maintenance of environmental assets for tourism and fishing. The cost of managing our catchments and water resources is significant; these costs should be transparent and, ideally, recovered from users. There are a range of options for managing the costs of water resources that must be explored, including regulatory charges, administrative charges, and consumption charges. Cost management can ensure the necessary financial capacity to adequately protect, plan and manage our water resources.

5 Water stewardship and conservation

Water stewardship and conservation of water resources is the responsibility of all Territorians. We must protect and use water more efficiently, wisely and responsibly, which can also serve to increase the productivity of irrigated agriculture, petroleum, mining and other commercial users of water.

TABLE 1:GUIDING PRINCIPLES FOR OUR WATER FUTURE STRATEGIC PLAN

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6 Indigenous social, spiritual and customary values of water are recognised

Traditional Owners have strong social, spiritual and customary connection to land and water. The Water Act defines cultural as a beneficial use (or environmental value) which requires water allocation planning, licensing for waste discharge, and that planning consider the aesthetic, recreational and cultural needs of the water resource, including Indigenous social, spiritual and customary values. The recognition of Indigenous values in the sustainable management of water resources remains a priority in the development for formal water allocation plans.

7 Catchments, aquifers and aquatic ecosystems must be protected

Territorians have a special connection with the water environment, one that supports culture, lifestyle and economy. The Northern Territory’s catchments and aquatic ecosystems are mostly in good health, with some in pristine condition. In most systems there has been limited demand on the water resource, owing to low population density and limited development. In some systems however, significant development is occurring and choices will need to be made about managing the resource through water allocation planning.

8 An adaptive management approach is essential to reflect the variable water cycle, and impacts from a changing climate

Changes due to a warming climate are also predicted to increase the variability of our climate. Water planning must be risk-based and include adaptive elements to address the impacts of the changing environment, and an expected increase in water demand. Future water regulation will require more flexible arrangements, as well as improved understanding of naturally variable flow regimes and the climate-related variability of our water resources. It is forecast that there will be hotter temperatures and higher rates of evaporation and evapotranspiration, more intense rainfall and cyclonic events, and an increased risk of saltwater inundation and erosion in coastal areas. Central Australia can expect more extreme high temperatures, drought, flooding, dust storms and bushfires. The changing climate will impact surface water flows, groundwater recharge, water demand and water dependent ecosystems.

9 Territorians have the right to safe, secure supplies of drinking water

Territorians expect that public water supplies, where provided, will be safe to drink, reliable, assessable and affordable. Long-term planning of water sources and the protection of catchments is essential to ensuring the quantity and quality of water for public consumption in cities, towns and remote communities.

10 Territorians have the right to sustainable and dignified sanitation

Territorians expect good public health assured through the provision of reticulated sewerage, or on-site connection, treatment and disposal sanitation systems. Where sanitation is provided through on-site technologies, good policy, planning and regulation are required to ensure both public health and the environment are protected. With increasing development pressures in rural areas not serviced with reticulated sewerage, there are emerging challenges that require good planning, environmental health policy, and water resource regulation to ensure affordable, sustainable solutions for sanitation.

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TABLE 2:GLOSSARY

adaptive management a process for making decisions about water extraction in the face of uncertainty and changing circumstances. The aim is to reduce uncertainty over time through effective monitoring. For example, the Katherine Water Allocation Plan provides for a review of the proceeding wet season’s recharge and annual allocation for the water year (from 1 May to 30 April) against water extraction licences.

aquifer a layer of porous underground rock that stores and transports water.

beneficial use a use of water that benefits the environment or the public, a concept fundamental to deciding whether to license a particular discharge into a water body, or determining the amount of water than can be extracted under a particular license. The following are designated beneficial uses of water under the Water Act:

(a) agriculture – to provide irrigation water for primary production including related research;

(b) aquaculture – to provide water for commercial production of aquatic animals including related research;

(c) public water supply – to provide source water for drinking purposes delivered through community water supply systems;

(d) environment – to provide water to maintain the health of aquatic ecosystems;

(e) cultural – to provide water to meet aesthetic, recreational and cultural needs;

(f) industry – to provide water for industry, including secondary industry and a mining or petroleum activity, and for other industry uses not referred to elsewhere in this subsection; and

(g) rural stock and domestic – to provide water for the purposes permitted under sections 10,11 and 14.

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conjunctive use the practice of managing the use of surface water and groundwater, often involving storing surface water underground. Conjunctive use includes managed aquifer recharge (MAR) where an aquifer is artificially recharged using the surface water available from high-flow events (floods). Water is collected and aquifers recharged using infrastructure and/or management to take advantage of the unused storage capacity in an aquifer; water stored there is then available to feed interconnected surface water systems.

Conjunctive use can increase the consumptive pool available for allocation, improve supply security and reliability, and improve the reliability of environmental flows. The planned conjunctive use of groundwater and surface water has the potential to offer major economic, social and environmental benefits through improving the efficiency of water management and use.

consumptive use the use of water for private benefit consumptive purposes, including irrigation, industry, urban use, stock and domestic use.

consumptive pool the amount of water that can be made available for consumptive use in a given water system under the rules of the relevant water plan.

environmental flow a water regime applied to a river, wetland or estuary to improve or maintain ecosystems and their benefits where there are competing water uses and where flows are regulated.

groundwater water below the land surface, which is continually moving and circulating as part of the water cycle.

longer term more than 2 years.

near term up to than 2 years.

over-allocation a situation in which, with the full development of water access entitlements in a particular system, the total volume of water able to be extracted by entitlement holders at a given time exceeds the environmentally-sustainable level of extraction for that system.

over-use is where the total volume of water extracted for consumptive use in a particular system at a given time exceeds the environmentally sustainable level of extraction for that system. Overuse may arise in systems that are over-allocated, or it may arise in systems where the planned allocation is exceeded due to inadequate monitoring and accounting.

potable water that is drinkable or intended for drinking or food preparation.

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precautionary principle in the application of the precautionary principle public and private decisions should be guided by:

careful evaluation to avoid, wherever practicable, serious or irreversible damage to the environment; and

an assessment of the risk-weighted consequences of various options.

reliability measured in years over a time period (say 1 in 30) where the entitlement of water in water extraction licences is forecast to be available.

sewage used water and domestic waste from homes or industry.

sewerage a network of drains, pipes, pumps which collect and transport sewage to a sewage treatment or disposal facility.

surface water water that flows over the earth’s surface, including rivers, creeks, wetlands and in watercourses or artificial channels and that is able to be captured, stored and supplemented from dams and reservoirs.

sustainable management of water water is allocated and used to achieve social and economic objectives in a manner that is environmentally sustainable while protecting high conservation-value systems.

water access (abstraction) entitlements the Northern Territory legislation only provides for limited period water extraction licences and not water access entitlements which are for perpetual or ongoing entitlement - as a property right - to the exclusive access to a share of water from a specified consumptive pool as defined in the relevant water plan.

water allocation the volume of water allocated to a water access entitlement in a given season, defined according to rules established in the relevant water plan.

Water Allocation Plan (WAP) a plan that informs the management of water within a declared water control district. It provides the planning framework for determining consumptive and environmental shares and trading rules.

Water Allocation Plan Area an area for which a statutory WAP is declared or being developed. A WAP area can be an entire water control district or only part of one.

Water Allocation Planning Framework the Water Allocation Planning Framework defines how the consumptive pool is established and managed under the Water Act, and Water Allocation Plans.

water conservation water conservation encompasses the policies, strategies and activities to manage fresh water as a sustainable resource including reducing demand through not using water and efficiency measures and water reuse.

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water control district a district declared when there are signs that water resources (groundwater reserves, river flows or wetlands) may be at risk of becoming stressed due to water extraction. Legislation covers all aspects of sustainable water resource management in water control districts, including the investigation, use, control, protection and allocation of the water resource.

water dependent ecosystem ecosystems that require access to water on a permanent or intermittent basis.

water extraction licence an authority to take and use surface water or groundwater for purposes other than stock and domestic use, subject to conditions. Water licences are issued, transferred or amended in accordance with the requirements of the Water Act and any applicable water allocation plan.

water management zone a zone within a WAP area usually developed for the purpose of establishing trading rules to protect water-dependent ecosystems and sustainable consumptive use.

water stewardship managing the water resources entrusted into our care, for the environment and current and future generations.

water trading the process of buying, selling or leasing water licence entitlements.

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Water Directorate Department of Land Resource Management

PO Box 496 Palmerston NT 0831

W: www.nt.gov.au/waterE: [email protected]

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