The Water Act 2007 is the key Commonwealth law governing the use and management of water across the Murray-Darling Basin.

It was designed to address over-extraction, protect and restore river and wetland ecosystems, and manage Basin water resources in the national interest. Environmental Justice Australia has worked on Murray-Darling Basin law and policy since the Act was passed, including the development and implementation of the Basin Plan.

In 2026, an independent review is examining how the Water Act has operated, whether its objectives have been achieved, and opportunities to better recognise First Nations rights and the principles of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

EJA’s submission argues that the foundations of the Water Act remain strong, but its implementation has often fallen short. We recommend strengthening the law rather than weakening its environmental protections.

A summary of key submissions

Keep strong environmental limits at the heart of the Water Act

The Water Act’s system of sustainable diversion limits – which sets limits on how much water can be taken from rivers and groundwater – must remain a cornerstone of the law.

These limits must be based on an environmentally sustainable level of take and must not compromise the environmental values the Act is designed to protect. EJA also recommends strengthening the law so these limits expressly support ecological restoration, river connectivity, biodiversity protection and Australia’s international environmental obligations.

Strengthen water planning and Commonwealth leadership

Water resource plans translate the Basin Plan into rules for individual river systems and catchments. EJA recommends making these plans more enforceable and giving greater priority to environmental water.

Plans should include clear rules to protect environmental flows, identify environmental watering requirements and better account for connections between rivers, wetlands and floodplains.

Where state-based plans cannot achieve the environmental outcomes required by the Water Act, the Commonwealth should have stronger powers to intervene directly.

Replace the failed SDL Adjustment Mechanism

EJA recommends dismantling the Sustainable Diversion Limit Adjustment Mechanism, or SDLAM.

The mechanism was designed to allow governments to substitute water recovery with infrastructure and other projects said to deliver equivalent environmental benefits. EJA argues it has failed, with more than half of the intended equivalent environmental benefits from notified projects now not expected to be delivered.

Useful projects – including work to reconnect rivers with floodplains – should continue, but through a new, transparent restoration program focused directly on restoring rivers, wetlands and floodplains rather than offsetting water recovery.

Put better science and transparent information behind water decisions

Decisions under the Water Act must continue to rely on the best available scientific knowledge.

EJA recommends stronger requirements for hydrological models, datasets and other technical information to be transparent, publicly available, scientifically credible and tested against real-world observations.

Climate change must also be properly incorporated into the scientific basis of Basin water management, including its effects across the whole water system rather than simply projected changes to river inflows.

Recognise First Nations rights and water governance

The Water Act does not currently give First Nations people meaningful power over decisions affecting Basin water resources.

EJA recommends a new part of the Act that recognises First Nations rights and interests and gives practical effect to relevant UNDRIP principles.

This should include stronger rights to participate, negotiate and reach agreement on decisions affecting Country and water; recognition of Aboriginal law, tradition and cultural authority; support for First Nations water-holding institutions; and pathways for cultural flows planning to become part of formal water resource planning.

Strengthen independent oversight and enforcement

EJA recommends establishing an Independent Water Commission with powers to investigate the administration and performance of the Water Act.

The law should also make it easier for people and organisations to enforce its provisions in the public interest, strengthen the Inspector-General of Water Compliance’s powers, and create clearer mechanisms to address non-compliance with water resource plans and diversion limits.

Protect the human right to water

EJA recommends national minimum standards to protect access to safe drinking water, household water and sanitation, particularly in regional and remote communities.

The law should make clear that critical human water needs and environmental sustainability take priority when water is scarce.

Overall

EJA’s submission argues that the Water Act remains an important and ambitious environmental law. The problem is not that its environmental foundations are too strong, but that key parts of the law have not been properly implemented.

The review is an opportunity to strengthen Commonwealth leadership, restore environmental integrity, improve transparency and accountability, and embed First Nations rights more meaningfully in the way the Murray-Darling Basin is governed.