Water Management
Groundwater availability
Groundwater is an important natural resource in NSW. Groundwater is a source of drinking water for many rural towns, is used for industrial needs such as mining, the domestic and stock requirements of farms or remote households and communities and for irrigation. While water availability in a river can change very quickly because of rainfall or dry conditions, groundwater availability is more stable.
Groundwater is water which is found below the water table in saturated soil and rocks and is most commonly accessed by bores or wells. Of all water use in NSW, 11 per cent is sourced from groundwater. The NSW Office of Water is responsible for the management of NSW's groundwater resources.
Until relatively recently, management of the State's groundwater resources was generally focused on investigation and subsequent development. Little attention was paid to the impacts that extraction might have on its continuing availability and the possible impacts on the environment.
The NSW State Groundwater Policy Framework Document (PDF 2 MB) highlights the need to manage the access to groundwater within the sustainable yield of a system so that the availability of the resource is sustained for all consumptive uses as well as the dependent ecological processes. Sustainable groundwater management also requires the protection of water quality and groundwater dependent ecosystems.
Groundwater availability in embargoed systems
In December 2008, two orders were made which embargo new applications for groundwater licences for all groundwater not covered by water sharing plans in the inland part of NSW.
Where the embargo orders apply, an application for a new water licence for groundwater under the Water Act 1912 cannot be lodged unless it fits within one of the exemptions specified in the relevant order or in the Water Act 1912. The embargo orders also do not apply to applications for bores for groundwater to meet basic landholder rights for domestic and stock use under s. 52 of the Water Management Act 2000.
Generally, new or expanding businesses requiring groundwater in inland NSW now need to obtain it from an existing licence holder. In the highly committed inland groundwater systems, the new Policy does not allow permanent trading but does allow temporary trading of the unused portion of the active component of an individual's account water. In all other groundwater systems in inland NSW both permanent and temporary trade can occur. Trading is permitted only where transfers are consistent with the Policy for groundwater transfers in inland NSW outside water sharing plan areas. For more information see the Guideline to the policy for groundwater transfers in inland NSW outside water sharing plan areas (PDF 85 KB).
The Policy provides an opportunity across inland NSW for new or expanding enterprises to obtain access to groundwater through the water market. The changes standardise the transfer rules in systems where trading is already in place and gives the licence holders in the remaining systems the ability to trade, which will encourage a greater return on this limited and valuable resource.
This new Policy does not change existing groundwater trading rules on the coast, which are established by the relevant water sharing plan in areas covered by the Water Management Act 2000, or, in areas still under the Water Act 1912, are established either by an embargo or in accordance with the Act and the associated water licence.
For information on applying for a transfer in areas under the Water Act 1912, visit Licensing under the Water Act 1912
More information on Groundwater licences under the Water Act 1912 – Frequently asked questions
More information on Embargo orders applying to groundwater outside water sharing plan areas in NSW.
Monitoring groundwater
The NSW Office of Water undertakes drilling to investigate the States' groundwater resources. The Office has more than 3000 monitoring bores and uses computer-based groundwater modelling to better understand groundwater flow systems.
NSW groundwater data archive reports provide preformatted reports containing information about licensed water bores, wells and excavations. Please note there is a slight delay while this application is loading.
Groundwater status reports
The Office is producing a series of status reports on the State's groundwater resources. These reports describe the physical state of the resources for different areas, provide information on groundwater licensing and use, and discuss the response of the groundwater system to variability in groundwater use and rainfall.
- Lower Gwydir Groundwater Source: Groundwater Management Area 004. Groundwater Status Report – 2008 (PDF 1.7 MB)
- Lower Namoi Groundwater Source Groundwater Management Area 001. Groundwater Status Report – 2008 (PDF 2 MB)
- Mid Murrumbidgee Alluvium: Groundwater Management Area 013. Gundagai to Narrandera. Groundwater Resources Status Report 2007 (PDF 2 MB)
- Upper Murray Alluvium: Groundwater Management Area 015. Albury to Corowa. Groundwater Resources Status Report 2008 (PDF 1 MB)
NSW Great Artesian Basin water auction
Central, Warrego and Surat groundwater sources
On 21 July 2009 in Walgett, the NSW Government held an auction of 1,200 megalitres of water saved from the Central, Warrego and Surat groundwater sources of the Great Artesian Basin through the Cap and Pipe the Bores Program. See below for background information explaining this process. A full review will be carried out before any further GAB water is released.
Auction terms and information for potential buyers (PDF 98 KB)
Background information
Why is the water being sold?
Through the NSW and Commonwealth Cap and Pipe the Bores Program up to 47,000 megalitres of water will be saved from 1999-2014 by capping and piping old free flowing bores. Local landholders must meet 50 per cent of the cost to cap and pipe inefficient bores on their property. Water is the life-blood of rural communities – returning a small portion of the water saved will help stimulate rural economies and improve the social wellbeing of many NSW towns hit hard by the drought.
What is the legal basis for this sale?
Extraction of water from the NSW Great Artesian Basin is governed by the legislation for the Water Sharing Plan for the NSW Great Artesian Basin Water Sources 2008. The order for the controlled allocation of access licences in the Great Artesian Basin can be viewed in the Government Gazette.
How much water is available for sale at the auction?
The water sharing plan for the NSW Great Artesian Basin Groundwater Sources allows 30 per cent of the water to be saved through the Cap and Pipe the Bores Program from 1999-2014 to be allocated to the community. The vast majority of water saved, some 70 per cent, will be left in Great Artesian Basin aquifers to benefit the environment and ensure security of supply for existing users.
This is the first auction of water saved through the Program and only 1,200 megalitres is being released. This represents about 2.5 per cent of the 47,000 megalitres to be saved over the life of the Program. This water will be auctioned on the water market in 24 lots of 50 megalitres.
In total, 14,100 megalitres of water may be made available to the community over the next ten years, depending on the savings made and future demand for water.
What water sources will the water to be auctioned come from?
1,200 megalitres of water is being released for sale from the Central, Warrego and Surat groundwater sources.
Will increasing groundwater extraction in the NSW Great Artesian Basin decrease water availability in the Murray–Darling Basin?
No. The water is being released from contained aquifers, which means they have very little or no connection with surface water systems in the Murray–Darling Basin.
Will increasing groundwater extraction in the NSW Great Artesian Basin mean there’s less water for the environment and existing users?
The water being sold is the result of savings made through the Cap and Pipe the Bores Program and represents only 2.5 per cent of the 47,000 megalitres to be saved from 1999–2014. This is water that is being returned to the aquifers that otherwise would have continued to be lost through old, inefficient free flowing bores. Therefore, releasing a portion of this water to the community will not affect existing users or the environment, both of which will benefit from more water being retained in the aquifers. Up to 70 per cent of the water saved will be kept in the Great Artesian Basin aquifers for the long-term.
Who will benefit from the sale of this water?
Rural communities who rely on water from the Central, Warrego and Surat groundwater sources will benefit from the sale of this water through increased opportunities for agriculture, tourism and mining.
How much will the water be sold for? Is the water being sold for a profit?
The water will be sold at market price as determined by the auction. The proceeds of the sale will offset the ongoing cost of capping and piping free flowing bores.
Will the sale of this water lead to over-allocation?
No. Scientific analysis undertaken during the development of the water sharing plan for the NSW Great Artesian Basin Groundwater Sources indicated that a percentage of the water saved through the Cap and Pipe the Bores Program could be released to the community without exceeding the sustainable limits of the water sources.
I'm interested in buying this water, how can I participate in the auction?
The auction will be held in Walgett at the Walgett District Sporting Club, cnr Fox and Montkeila Streets commencing at 11.00am on 21 July 2009.
Detailed information is available in the Auction terms and information for potential buyers (PDF 98 KB).
If I am successful in my bid, what happens next?
Information is contained in the Auction terms and information for potential buyers document. You will need to apply for a new water access licence pursuant to a controlled allocation order.