Modelling the economic impact of environmental flows for regulated rivers in New South Wales, Australia.

The management of water resources across Australia is undergoing fundamental reform in line with the priorities identified by the Council of Australian Governments (COAG) in 1994. This includes reforms to the specification of property rights, the way the resource is shared between the environment, irrigators and other users, charges for water use and the operational management of the river systems. In New South Wales (NSW), a series of water sharing plans (WSPs) is being developed for each water source in the State including regulated rivers, unregulated rivers and groundwater aquifers. These plans, which are the mechanisms by which COAG reforms are being implemented, are being developed by community-based water management committees (WMCs). The role of the WMCs is to develop a plan that achieves a balance between environmental, economic and social outcomes. NSW Agriculture has assisted a number of WMCs by quantifying the economic impact of proposed WSP options on the irrigation community. This paper outlines the approach taken by NSW Agriculture to quantifying economic impacts on irrigators in regulated catchments and provides results of case studies in the Lachlan River Catchment which is heavily developed for irrigation.