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Murray-Darling Basin: A$13 Billion and 30 Years of Reform, but the River System Remains in Decline

Maggie Johnson

By Maggie Johnson

December 2, 2024

Image Credit: “Murray-Darling Basin Australia,” available at Yahoo Images (12/02/2024).


A landmark study has revealed that despite spending over A$13 billion and implementing 30 years of policy reforms, Australia's Murray-Darling Basin remains in a state of decline. The four-year research, conducted by 12 scientists from leading Australian universities, draws on data from 1980 to 2023 and is the most comprehensive analysis of government efforts to protect the river system to date. The study found that many expensive reforms, including the much-touted Murray-Darling Basin Plan, have largely failed to improve conditions for people and the environment.

The Murray-Darling Basin, a vital river system that runs through Queensland, New South Wales, Victoria, and South Australia, is in a state of crisis. Extensive damage due to over-extraction of water, largely for irrigation, has led to toxic algae blooms, drastic declines in fish and bird populations, and towns struggling with undrinkable water supplies. The situation has been exacerbated by invasive species, climate change, dams blocking water flow, and land clearing that increases salinity. Indigenous nations, who once thrived in the region, now hold rights over less than 0.2% of the river's surface water. Urgent action is required to tackle these critical issues.

Government action to address these issues began over three decades ago. In 1994, Australian governments agreed to cap the further issuance of water extraction licenses, and in 2008, Prime Minister John Howard’s “Water Act” sought to reallocate water from irrigation to environmental needs. The Murray-Darling Basin Plan, enacted in 2012, was intended to curb water extraction and ensure the environment received its share. To date, almost $8 billion has been spent on implementing the plan, but the study's findings suggest that it has not delivered the promised benefits for people and nature.

A major flaw in the basin plan’s implementation was the reduction of funding for independent audits, which were replaced by less effective monitoring systems that lacked clear targets and failed to measure real-world outcomes. For instance, instead of tracking the health of fish populations, the focus was often on measuring water flow at specific locations. The study team developed their own monitoring system, using 27 indicators covering Indigenous, environmental, social, economic, and compliance aspects, based on publicly available data spanning over 40 years.

The results were troubling: 74% of success indicators were unmet, indicating either no improvement or worsening conditions. Notably, only two of the 12 environmental indicators showed positive results. The flow of water required to achieve environmental outcomes was not met at 65% of the river sites assessed. Moreover, much of the water returned to rivers was not effectively used to restore the environment, and the abundance of waterbirds continued to decline. At the same time, fish kill events, like those at Menindee Lakes in New South Wales, increased. Indigenous rights to water also continued to diminish, and many communities, particularly Indigenous ones like Wilcannia, NSW, still lack access to safe drinking water.

On a more positive note, some irrigation communities were found to have prospered economically during the period of water buybacks. Additionally, the populations of large-bodied freshwater fish showed improvement, likely due to the cessation of commercial fishing, and nitrogen and phosphorus concentrations in the Murray River decreased.

Despite these challenges, recent efforts by the federal Labor government, including the 2023 "Restoring Our Rivers" laws aimed at increasing water returns to the environment, represent a significant step forward. These initiatives show that positive change is possible. However, much remains to be done. A review of the Murray-Darling Basin Plan scheduled for 2026 shows a clear need for better monitoring and accountability. The paper suggests mapping river ecosystems and ensuring Australia meets its international obligations to restore inland water ecosystems. Furthermore, those responsible for implementing the plan should be held accountable when targets are not met.

Urgent reform is needed to ensure that taxpayers’ investment in the Murray-Darling Basin leads to tangible improvements and that the river system and the communities that depend on it can thrive in the future.

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