2026 will see the continuation of more than three decades of constant water reform, with a range of water issues active at local, state, Basin and national levels. Cotton Australia, working in close partnership with key organisations such as the National Farmers Federation, National Irrigators Council, Queensland Farmers Federation and New South Wales Irrigators Council, along with many valley-based irrigator groups, will be striving to protect your water property rights and minimise the costs and regulations associated with using water for irrigation.

The following is a snapshot of some of the key issues, with links to sites and documents that can provide further information.

Murray-Darling Basin Review

On 5 February, the Murray-Darling Basin Authority (MDBA) released its discussion paper and commenced the formal consultation period on its review of the Murray-Darling Basin Plan. This is a review mandated by legislation, and it is the first of what will be 10-year reviews. It is important to note that the review is not a formal re-write of the existing plan, but at the end of the process (late 2026/early 2027) the Authority will recommend to the Minister any changes it believes need to be made to the Plan.

The Review Discussion Paper can be found online, along with additional information and resources. The MDBA is calling for submissions, which will close on 1 May. Cotton Australia will be developing its submission over the coming weeks and would welcome any input from growers. Please contact Michael Murray on 0427 707 868 or email [email protected]

As a high-level summary, the Review Discussion Paper:

• Assumes full recovery of the 450GL “Upwater”, including 100GL of recovery from the Northern Basin.
• Finalises the Sustainable Diversion Adjustment Mechanism projects (605GL “Downwater”) with a likely shortfall of around 300GL that could be recovered through the markets.
• Indicates no general expectation that catchment Sustainable Diversion Limits need to be decreased further; if required, additional water recovery would result.
• Recognises that “just adding water” will not be enough to improve the environment and that a more holistic approach is required, including investment in complementary measures.
• Includes a chapter on the need to improve connectivity in the Northern Basin, representing a relatively new threat, linked to the NSW Government’s Northern Basin Connectivity Review.

Cotton Australia received a briefing with other agricultural groups from the MDBA in mid-February and will attend an MDBA summit in Brisbane on 10–11 March, which will include a specific workshop on Northern Basin Connectivity.

The MDBA is also conducting a series of invite-only meetings across the Basin during March. If you have attended any of these, it would be useful to provide feedback and insight to Michael Murray.

Northern Basin Expression of Interest to Acquire Water towards the 450GL “Upwater” – As mentioned above, the Federal Government has extended the geographic reach of the 450GL “Upwater” to the Northern Basin. This was enabled by inclusion in the 2023 Restoring Our Rivers Bill. The Federal Government is currently calling for Expressions of Interest.

Read the Minister for Water Murray Watt’s press release or find out more about the Restoring Our Rivers Trading Strategy.

Menindee Review

Running almost concurrently with the Basin review, the Authority has commenced a significant review of the operations of the Menindee Lakes.

The outcome may be significant for Northern members in regard to long-term “trigger” levels and management of water quality and fish habitat, and potentially for reliability in the Murray Valley. Submissions on the Menindee Review also close on 1 May.

NSW Government’s Northern Basin Connectivity Review

The NSW Government is continuing its work in developing recommendations from the Northern Basin Connectivity Review.

At the time of writing, Cotton Australia is awaiting the timing of an industry briefing by Government, which emphasises that the options detailed are not government policy. However, this connectivity review poses a significant threat to irrigated agriculture in the NSW segment of the Northern Basin, because instead of relying on the market to acquire water, the recommendations focus on changing water access rules, effectively returning to compulsory acquisition. Cotton Australia, in conjunction with irrigator groups, is considering engaging expert consultants to review hydrology and economic impact assumptions used by the government.

In related issues, the NSW Government wishes to increase the Menindee “water trigger level” from 190GL to 250GL. Floodplain harvesting and supplementary water access would be restricted in the Northern Basin when total water in storage is below this level. It has also been flagged that in the short term a Section 324 order restricting the take of floodplain and supplementary water is likely due to dry conditions.

Cotton Australia, along with other irrigator groups, will receive an in-depth departmental briefing on the Connectivity Review in Narrabri on 9 April. Cotton Australia, together with other irrigation representative organisations, is actively opposing these changes. Related to, but separate from the Connectivity Review, the Department is also reconsidering requirements for minimum inflows to ensure critical human needs.

Groundwater Transfer Rules

Cotton Australia is aware that the NSW Government and Water NSW have been more strictly applying rules associated with hydrological assessments and neighbour approvals for some groundwater transfers. This is a complex area, and Cotton Australia has joined a NSW Irrigators Council sub-committee to identify and advocate for practical solutions.

Floodplain Management Plans (Southern NSW)

The NSW Government is rolling out floodplain management plans across the Murrumbidgee and Murray Valley. As experienced in northern NSW, this has identified complexity and uncertainty in mapping and identification processes. Cotton Australia is actively working with NSW Irrigators Council on this issue.

Review of RAB-Based Irrigation Prices 2027–29

The Queensland Government has commissioned the Queensland Competition Authority (QCA) to review regulated asset-based pricing for 2027–29. Sunwater and Seqwater currently use an annuity approach to determine funding for capital expenditure. The Qld Government believes efficiency and savings could be made if a Regulated Asset Base (RAB) approach were adopted. Many irrigators are suspicious of the change. Read more about the Review of RAB-based irrigation prices.

The QCA is willing to hold in-person briefings if irrigators express sufficient interest by 9 March. Irrigators can register via the form or by calling (07) 3222 0555.

Through the Queensland Farmers Federation’s Water and Energy Policy Committee, chaired by Cotton Australia, irrigators are engaging a consultant to provide expert advice on which approach will provide the best long-term results.

Cotton Australia would welcome hearing the views of its growers. Please contact Michael Murray on 0427 707 868 or email [email protected]