Multiple Benefits through the Life Cycle of the Basin Plan

The objectives of the new water-sharing plan for the Murray–Darling Basin Plan are set out in the Water Act 2007 (Cwlth); cardinal among these objectives is the maximisation of economic, social and environmental outcomes for the Australian community (Water Act 2007, ss. 3[c] and [d][iii], s. 20[d]). Meeting this objective requires an extensive process of biophysical modelling and economic analysis of the costs and benefits associated with resetting the balance among multiple water users, including the environment. Maximising net benefits applies to plan development where implementation can be thought of as a two-stage process: a) establishing long-term sustainable diversion limits (SDLs) that set the overall balance of water available for the environment versus consumptive uses; b) developing basin-level plans for environmental watering, water quality, accreditation, and water-trading rules. Included in this is the design of mechanisms and incentives to incorporate basin-wide targets and goals into State water-sharing plans and operational delivery mechanisms.