Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697637128100.pdf (Australia)
Government Response to the Recommendations of the Senate Environment, Communications, Information Technology and the Arts References Committee Inquiry The Value of Water: Inquiry into Australia's Management of Urban Water Whole of Government Response to Recommendations of the Senate Environment, Communications, Information Technology and the Arts References Committee Inquiry - The Value of Water: Inquiry into Australia's Managemeni of Urban Water.
Introduction On 5 December 2002 the Senate Environment, Communications, information Technology and the Arts References Committee (ECITA) tabled its report "The Value of Water: Inquiry into Australia's management of urban water."

he Australian Government would like to acknowledge the efforts of the Committee in preparing this report that addresses a range of issues relating to the management of urban water in Australia, and contributed to the debate leading to the creation of the National Water Initiative.
The Australian Government is committed to the efficient and effective management of Australia's water resources.

Major recent achievements include the National Water Initiative (NWI), the establishment of the $2 billion Australian Government Water Fund and the National Water Commission, and the Australian Government's investment of $500 million in the Murray Darling Basin.
On 25 June 2004. the NWI was considered bv the Council of Australian Governments (COAG) and signed by the Australian Government and the governments of New South Wales, Victoria, Queensland, South Australia, the Northern Territory and the ACT.

Tasmania signed the NWI on 2 June 2005.

Western Australia signed the NWI on 6 April 2006, completing the national coverage of the initiative.
The NWI provides a blueprint for national water reform over the next decade and sets out a number of specific actions to be implemented as priorities by the signatory governments.

These include speciiic actions regarding urban water reform.
Implementation of the NWI will be overseen by the Natural Resource Management Ministerial Council (NRMMC) in line with detailed implementation plans to be developed by each state and territory and accredited by the National Water Commission (the Commission) by the end of June 2005.A copy of the Intergovernmental Agreement on a National Water Initiative is at Annex A.
The recommendations of this Senate Inquiry and a report by the Prime Minister's Science, Engineering and innovation Council (PMSEIC), "Recycling Water For Our Cities", were considered during the development of the N WI.

The PMSEIC report, released in November 2003, analyses the current situation and outlines options for overcoming water shortages.

Consistent with the NWI, the National Water Commission was 'established as an Australian Government independent statutory agency.
The Commission will accredit state and territory government implementation plans, assess progress in implementing the NWI and advise on actions required to better realise the objectives of the NWJ.

'The Commission will also undertake the 2005 assessment of progress with implementing water reform commitments under the National Competition Policy and administer the Water Smart Australia and Raising National Water Standards programmes of the Australian Government Water Fund.
The Australian Government has considered the report and is pleased to provide the following response, which is based on existing programmes and initiatives.

The Committee's recommendations are addressed in turn below.

GENERAL RECOMMENDATIONS Recommendation A: The Commonwealth play a more prominent rule in driving the changes needed to manage urban water more sustainably.

RESPONSE The Australian Government supports and is implementing this recommendation through a number of initiatives as outlined below.
COAG Water Reform Framework As recognised by ECII'A, the Australian Government and state and territory governments agreed to nationwide reform of urban and rural water management through the 1994 COAG Water Reform Framework.
The Water Reform Framework sought to establish integrated and consistent approaches to water resource management throughout Australia, including in urban areas, and includes provisions for water entitlements and trading, environmental water requirements, institutional reform, water pricing, research and public consultation and education.

To help drive reform, COAG decided in 1995 that implementation of the reforms would he included under the umbrella of National Competition Policy (NCP).
Under NCP, the Australian Government makes competition payments to the states and territories for the implementation of a range of important reforms - including the COAG Water Reform Framework.

The National Competition Council (NCC) assessed the progress of jurisdictions in implementing reforms and made recommendations on the level of competition payments lo the states and territories.
Signatories to the National Water Initiative (NWI) have agreed that the National Water Commission will undertake the scheduled 2005 assessment of states 'and teaitories' progress in implementing their NCI' water reform obligations.

National Water Initiative Whiie much has been achieved under the Water Reform Framework, the Australian Government and state and territory governments recognise that there is a need to continue the reforms.
In August 2003, with the leadership of the Commonwealth, COAG agreed to develop further options to progress the national water policy agenda through the development of the National Water Initiative (NWI).

On 25 June 2004, the Prime Minister and Premiers and Chief Ministers of the states and territories (except WA and Tasmania) signed an intergovernmental Agreement on a National Water Initiative to complement and extend the Water Reform Framework to more fully realisc the benefits intended by COAG in 1994.
'1 asmania signed on 2 June 2005.

Wcstern Aush-alia signed on 6 April 2006 completing the coverage of the NWI.

The NWI establishes a number of national water reform actions to be implemented as priorities by the Australian Government and state and territory governments over the next ten years, including with regard to urban water reform.
Specifically, agreed outcomes for the urban water reform element of the NWI include: 0 healthy, safe and reliable water supplies; 0 increasing water use efficiency in domestic and commercial settings; encouraging the re-use and recycling of wastewater where cost-effective; 0 facilitating water trading between and within the urban and rural sectors; 0 encouraging innovation in water supply sourcing, treatment, storage and discharge; and 0 achieving improved pricing for metropolitan water.
fhe U WI also sets oul the processes tbr ensuring ongoins i~nplemc.n~atioti o f r e f i ~ r ~ n ;stion\.

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;sion (the Commission).

The Commission has been established as an independent statutory agency within the Prime Minister's portfolio.

A key role of the Commission is to assist with the effective implementation of the NWI.
The National Resource Management Ministerial Council (NRMMC) is responsible for overseeing implementation ofthe NWJ with reference to advice fiom COAG and in consultation with other Ministerial Councils.
Ministerial Councils that may have a particular interest in aspects of the NWI include the Environment Protection and Heritage Council (EPHC), the Local Government and Planning Ministerial Council (LGPMC), the Primary industries Ministerial Council and the Murray-Darling Basin Ministerial Council On 22 March 2006, the Prime Minister's Parliamentary Secretary with special responsibility for water, the Hon.

Malcolm 'Turnbull MP, announced an urban water inquiry.
States and territory governments and water agencies have been invited to examine and report on impediments to and options open to major cities to render their water sustainable.

In August 2006 the Department of Prime Minister and Cabinet released a discussion papcr on the Role of the private sector in the supply of water and wastewater services.
Public submissions to the discussion paper will provide information to the Australian Government on the implications of private sector participation for Australia and its potential role as a source of investment, innovation and improved managed practices fbr water and sewemge services.
The Parliamentary Secretary to the Prime Minister, Mr Malcolm Turnbull MP wrote to the state and territory governments and their government owned water utilities to seek their submissions on water supply and demand management issues.

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to meet future water demands with an additional analysis of the financial and operational performance of government owned water utilities.
The Environment Protection and Heritage Council (EPHC) aims to ensure people enjoy the benefit of equivalent protection from air, water or soil pollution and from noise, wherever they live in Australia; and that decisions of the business community are not distorted, and markets are not fragmented, by variations between participating jurisdictions in relation to the adoption or implementatio~ of major environment protecti&measures.
With respect to water the EPHC in conjunction with the NRMMC, develops national approaches to water quality standards and improving water quality and monitoring, and conservation of Australia's urban water resources.

- The Local Government and Planning Ministerial Council (LGPMC) leads debate and decision-making on key strategic policy matters for local government and planning in Australia and New Zealand that can be addressed at the national level.
The LGPMC has agreed to work in partnership with the NRMMC and the EPHC on water recycling and water sensitive urban design.

The Australian Government Water Fund On 13 September 2004, the Prime Minister, the Hon John Howard MP, announced a $2 billion Australian Government Water Fund (AGWF) to assist with the funding of practical, on-ground water solutions.
The Australian Government Water Fund will provide: $1.6 billion over six years for the Water Smart Australia programme to accelerate the smartest technologies and practices in water use across Australia, including $5 1 million over six years for the operational costs of the National Water Commission Relevant to urban Australia, the Water Smart Australia programme can help assist projects that improve river flows, desaiinate water, recycle and re-use stormwater and 'grey' water, provide more efficient storage facilities, develop water efficient housing design and provide alternatives to ocean outfalls and better management of sewage in coastal cities and towns; 0 $200 million over six years for the Raising National Water Standards programme to lift Australia's national capacity to measure, monitor and manage water resources.
Areas for investment include water accounting, groundwater assessment, the conservation of high environmental value water systems and water efficiency labelling.

m $200 million over live years for the AGWF Community Water Grants programme to reward a culture of wise water use through grants of up to $50,000 to community organisations for on-the-ground work to increase water use efficiency, improve river or groundwater health or improve community education on water saving.
This includes departmental funding of $23.1 million over five years.

The AGWF Community Water Grants programme will be administered by the Department of the Environment and Herita~e with the assistance of the Department of Agriculture, Fisheries and Forestry.
- The Environment Industry Action Agenda The Environment Industry Action Agenda (EIAA) announced in September 2001 and currently being implemented, was developed by the environment industry and thc Austratian Government in consultation with mainstream industry and all State and Territory governments.

The overarching goal of the EIAA is to 'Capture the High Ground'.
The objective of this goal is to provide clear leadership from both industry and government to change the way the environment is viewed and the way environmental issues are addressed.
Fulfilling this recommendation, the Business Roundtable on Sustainable Development (BRSD), consisting of a number of CEOs from major businesses and chaired by Mr Leon Davis of Westpac Banking Corporation, was established to provide high-level business advice to the Government on ways to increase the uptake of sustainable business practices in Australia.
The BRSD also promotes dialogue on key sustainable development issues between business leaders from a variety of sectors in the Australian economy and key Government leaders.

The BRSD has held a number of meetings since 2003 has agreed on a vision of sustainable development from a business perspective, and reported to Ministers its views on arange of issues including sustainable water use.
- Thc Barton Gmup of environment industry CEOs was established to champion and implement the industry aspects of the EIAA.

In 2004 the Barton Group secured broad industry support and a matching gmnt of $190,000 from the Auslndustry Innovation Access Program to develop a roadmap for the Australian water industry.
A comprehensive discussion paper was produced and discussed with stakeholders in consultation seminars held around Australia in November 2004 and the "Australian Water Industry Roadmap" was released in June 2005.
This timely project will complement the policy work of the COAG National Water Initiative by identifying in-place best practice approaches to sustainable water use in Australia, with a view to promoting faster uptake of innovative technologies by water utilities and increased private sector involvement.

A comprehensive discussion paper was produced and discussed with stakeholders in consultation seminars held around Australia in November 2004 and a national 'Blueprint' is Juc to be rclrrascd i n mid-2005.
In addition, 13anon Grulrp n~cmhcrs.

nith supporl firom industrv and all l~vels of govcrntnenr, facilitu~ed a maior promotional publication "U titer ~nnovation: A New Era fgr Australia".

Launched in four state capitals-in mid 2004, this document was well received as an aid to policy and industry development reform.
National Water Quality Management Strategy The Australian Government and state and territory governments have jointly developed the National Water Quality Management Strategy (NWQMS) to achieve sustainable use of the nation's water resources by protecting and enhancing water quality while maintaining economic and social development.
The policies of the NWQMS emphasise the importance of ecologically sustainable development, integrated (or total) catchment management, best management practices, including the use of acceptable modem technology and waste minimisation and utilisation, and the role ofeconomic measures, including 'user-pays' and 'polluter-pays' approaches.

Implementation of the NWQMS was incorporated into the COAG Water Reform Framework in 1994.

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- In response to the need for further guidance on water reuse, the Australian Government and state and territory governments are progressing the development of National Guidelines For Water Recycling - Managing Health and Environmental Risks (the Guidelines).

The Guidelines will promote the safe reuse and recycling of sewage effluent, greywater and stormwater for non-drinking purposes such as open space irrigation, industrial purposes, garden watering, car washing and toilet flushing.
The Guidelines will be implemented through the NWQMS and will supersede the current Guidelines for Urban Stormwater Management and Guidelines for Sewerage Systems - lJse of Reclaimed Water.

The Guidelines are being prepared in two phases - sewage effluent and greywater components currently being developed for completion hy the end of 2005 and a stormwater component to be developed thereafter.
The Guidelines will provide national guidance on best practice in water recycling and will use the innovative risk management framework approach pioneered in the 2004 revision of the Australian Drinking Water Guidelines by the joint National Health and Medical Research Council (NHMRC) and NRMMC.

The NHMRC is undertaking further work to improve drinking water quality with the development of an Electronic Decision Supporl Tool for the management of rural and remote community drinking water supplies.
The draft tool has undergone national and international scrutiny and is expected to be finalised in late 2005.

The NHMRC: "Guidelines for Managing Risks in Recreational Water 2005" provide water managers with another tool that has a preventive risk assessment and risk management approach to the management of fresh (including drinking water reserves) estuarine and marine recreational water.
Sustainable Cities Programme The Australian Government announced the establishment of the Sustuinuhle Cities programme in May 2003, The programme is a new urban environment initiative aimed at making Australian cities and towns cleaner and more sustainable.
Key features of the programme relevant to urban water management include: the national Water Efficiency Labelling and Standards (WELS) scheme which includes mandatory labelling and minimum performance standards for agreed appliances to reduce urban water consumption.
Under the National Water Initiative (NWI), signatory state and territory governments agreed to have legislation to implement the WELS in place and a regulator undertaking compliance activity by 2005 ; and e a new green buildings programme that includes the National Australian Built Environment Ratings System (NABERS) that will ensure that future building projects are more environmentally-friendly.
NABERS enables building owners, users and tenants to rate the environmental perFormance of existing commercial office and residential buildings across a suite of key environmental impact areas including water use, stormwater runoff and pollution, and sewage outfall volume.

The Sustainable Cities programme also connects to a water cycle management plan for local government, undertaken by the International Council of Local Environmental Initiatives (ICLEI).
As part of Sustainable Cities, the Australian Government is providing $ 1 million over five vears to the lCLEl for the national rollout of its local eovemment Water Campaign.

This programme will link local government and water utilities with catchment management agencies and other resource managers to more effectively coordinate water supply, demand and discharge.
- Sustainabk Schools Initiative The Australian Government supports schools management of resources, including water, through the Sustainable Schools Initiative.

This initiative aims to integrate sustainable resource use practices into existing curriculum and daily running of the schools.

Funding and capacity building are delivered by partnerships between both government and non- government organisations in most Australian states and territories.
A critical element of the programme is incorporating and involving the school's local community.

National Water Savings Initiative As part ofaNational Water Savings Initiative, the Australian Government Department of Agriculture, Fisheries and Forestry has initiated a domestic water savings website to encourage urban Australians to help save water.

Water savings ideas were gathered from public submissions and are featured on www.savewater.com.au.
The website lists ideas and technologies for saving water around the home, garden, business, farm and public places.

Examples include rainwater harvesting systems, grey water recycling, and other ideas.
Focusing Commonwealth funded Research In the 2002, the Prime Minister announced Australia's four National Research Priorities, which include the specific goal of supporting research that aims to deliver "Sustainable ways of improving water productivity, using less water in agriculture and other industries, providing increased protection of rivers and groundwater and the re-use of urban and industrial waste waters."
In a major initiative to focus research towards issues of national importance the Australian Government allocated an additional $305M over 7 years (from 2004105) to the CSlRO to develop six new National Research Flagships in collaboration with other research agencies.

In excess of $20M per annum of CSIRO's resources is now allocated to undertake research to address national water issues under the Water for a Healthy Country National Research Flagship.
The Australian Government is also providing $6.7 million through the Department of Education, Science and Training for a new International Centre of Excellence in Water Resource Management to be based in Adelaide.

In addition, six Cooperative Research Centres with a focus on water issues have tbrmed a CRCs Water Forum.

Recommendation B: A national approach is taken to overcome the jurisdictional barriers lo better practice.
RESPONSE: The Australian Government supports and is implementing this recommendation.

The Australian Government has and continues to take a national approach to overcoming jurisdictional barriers to better practice through cooperation with state and territory governments and participation in intergovernmental fora such as the Council of Australian Governmmts (COAG) and various Ministerial Councils.
Participation in these councils provides the opportunity to bring together jurisdictions to discuss and resolve cross- jurisdictional issues of national significance, including issues related to water.

COAG is the peak intergovernmental forum in Australia and is responsible for initiating, developing and monitoring the implementation of policy reforms that are of national significance and require cooperative action by Australian governments.
COAG agreed the 1994 Water Reform Framework, recognising that better management of Australia's water resources is a national issue, and state and territory governments have made considerable progress towards implementing that agreement and moving towards more efficient and sustainable water managcment.

Embedding achievement of the 1994 Water Reform Framework within the COAG National Competition Policy framework provided further incentive for jurisdictions to implement the agreed water reforms.
The National Water Initiative (NWI), agreed at COAG in June 2004, builds on and extends the 1994 Water Reform Framework and recognises the continuing national imperative to more fully realise the benefits intended by COAG in 1994.

The NWI sets out priority reform actions designed to result in a nationally compatible market, regulatory and planning based system of managing surface and groundwater resources for rural and urban use that optimises economic, social and environmental outcomes.
A key aspect of the N WI is the establishment of a National Water Commission to assist with the effective implementation of the agreement.

The National Wuter Commission Act 2004 establishes the Commission as an independent statutory agency.
The Commission is made up of seven commissioners, of whom four are nominated by the Australian Government and three by the state and territory governments, The Commission's responsibilities include regularly assessing and providing advice to COAG on progress with implementing the N WI and promoting the objectives and outcomes of the NWI.
The $2 billion Australian Government Water Fund can also assist state and local governments, the private sector and community groups to overcome barriers to better practice by providing assistance for practical, on-the-ground water solutions.

The Natural Resource Management Ministerial Council (NRMMC) is responsible for developing policies and strategies for national approaches to the conservation, sustainable use and management of Australia's land, water, vegetation and biological resources.
Specific to water, the NRMMC is responsible for overseeing implementation of the NWI, in consultation with other Ministerial Councils as necessary and with reference to advice from COAG, and for addressing ongoing implementation issues as they arise.

The NRMMC provides annual reports to COAG i n progress with the actions being taken in imnlementing the NWI.

It has also develooed a comorehensive national set of pekormancekdicators for the NWI.
The NRMMC has an agreed framework for a workplan, which focuses its efforts on facilitating jurisdictions to reach outcomes on those issues where compatible arrangements between jurisdictions are required under the N WI.
- - The Environment Protection and Heritage Council (EPHC) aims to ensure people enjoy the benetit of equivalent protection from air, water or soil pollution and from noise, wherever they live in Australia; and that decisions of the business community are not distorted, and markets are not Fragmented, by variations between participating jurisdictions in relation to the adoption or implementation of major environment protection measures.
With respect to water the EPHC in conjunction with the Natural Resources Management Ministerial Council, develops national approaches to water quality standards and improving water quality and monitoring, and conservation of Australia's urban water resources.

The Local Government and Planning Ministerial Council (LGPMC) leads debate and ilwiiion-making on key drategic polic) matters tiw local go\ernmeut and planring in Australi;~ and I\?\\ Zealand that ran he acidress~.d at the national le\el.

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(iPVC' has agreed to work in partnership with the NRMMC and Environment Protection and Heritage Council on the issues of water recycling and water sensitive urban design.

The National Water Quality Management Strategy (NWQMS) is another example of the Australian Government taking a cooperative approach to overcoming barriers to better practice.

The NWQMS provides a nationally consistent approach to water quality management.
Implementation of the N WQMS forms part of commitments under the 1994 COAG Water Reform Framework and, as a result, has been linked to the competition payments under thc National Competition Policy arrangements.

Recommendation C: A high priority be given to scientific research into water management coordinated at the national level.

RESPONSE: The Australian Government supports, and is implementing this recommendation.
In December 2002 the Prime Minister announced four National Research priorities including the research agenda, "An Environmentally Sustainable Australia."

A key priority ol'this agenda is to devise "sustainable ways of improving water productivity, using less water in agriculture and other industries, providing increased protection of rivers and groundwater, and the re-use of urban and industrial waste waters."
'The National Research Flagship program led by CSlRO is aligned with the national research priorities.

There are currently six flagships within the program, each focussing on a challenge of importance to Australia, including water.
The Water for a Healthy Country flagship is focusing on developing a better understanding of the economic, social and environmental value the Australian community derives from the nation's water resources with the aim of developing the technologies and information needed to deliver more value to the nation.

The Flagship is focussed on 4 key research areas - Urban Water Systems, irrigated Agriculture, Catchment Management and Riverine and Estuarine Ecology.
The program is specifically designed to integrate, focus and direct national scientific resources and is about building collaborative partnerships and delivering results.

The Urban Waterscapes component of the Water for a Healthy Country flagship will encourage wise resource access, use and re-use through demonstration urban and rural water systems designed to deal with population growth, climate variability and climate change and the continually changing demands on limited water resources.
The flagship is developing strong linkages with the COAG Water Reform Framework and will work cullaboratively with other research partners to provide much of the science required to support implementation of the National Water Initiative (NWI) and water policy developments occurring at state and local government level.

The NWI recognises that significant knowledge and capacity building is needed to support its ongoing implementation.
Particular areas identified are: e regional water accounts and assessment of availability through time and across catchments; improvements in farm, irrigation system and catchment water use efficiency; interaction between surface and groundwater components of the water cycle; e changes to water availability from climate and land use change; e e demonstrating ecological outcomes from environmental flow management; e 8 catchment processes that impact on water quality; improvements in urban water use efficiency; and e independent reviews of the knowledge base.
(Clause 98 of the NWI) Under the N WI, signatory governments have agreed to: r e identify the key knowledge and capacity building priorities needed to support ongoing implementation of the NWI; and identify and implement proposals to more effectively coordinate the national water knowledge effort.

(Clause 101 of the N WI).


In addition, the Raising National Water Standards programme of the Australian Government Water Fund will invest in lifting Australia's national capacity to measure, monitor and manage its water resources.
Under the Raising National Water Standards programme, $200 million will be invested over six years to support: 8 improved water accounting, including a nationally consistent system for collecting and processing water-related data; r strategic assessment of groundwater resourccs; e working with local communities to improve the conservation of water systems with high environmental values through measures such as planning, voluntary conservation agreements and improved knowledge; and e establishing and promoting the Water Efficiency Labelling Scheme for household water appliances and development and implementation of a 'Smart Water Mar!?
regime for household gardens.

A number of Cooperative Research Centres have a research focus on water issues and have formed a CRCs Water Forum.

These include the Cooperative Research Centres for Coastal Zone Management, Estuary and Waterway Management, eWater (combining the CRCs for Catchment Hydrology and Freshwater Ecology), Environmental Biotechnology (formerly, Waste Management and Pollution Control), and Water Quality and Treatment.
The Forum enables coordinated research and joint problem solving across disciplines and organizations, drawing on the skills of, for example, engineers, ecologists and chemists.

Issues that the Water forum CRCs work on include catchment management, wastewater management, urban stormwater quality, land use impacts and river ecology.

Together their research interests cover the water cycle and enable them to inform public and scientific debate on national water issues.
The Australian Bureau of Statistics has produced two water accounts and the third is in development now.

These accounts have integrated data from across Australia into a standard format and the Bureau continues to work with governments at all levels as well as the private sector to ensure nationally consistent data collection and reporting.
The water accounts link economic and environmental data, and have been used by government and academic researchers investigating patterns of water use, and for forecasting future water demands and how these demands may be affected by changes to water price and availability.

The National Land and Water Resources Audit (the Audit) was established under the Nuturul iferitage 1iwtAct 1997 to provide a comprehensive national appraisal of Australia's natural resource base.
From 1997 - 2002 the Audit significantly progressed the collection and collation of primary data and inibrmation related to Australia's natural resource management.

With regard to water issues, the Audit reported on water availability, sustainability of use and environmental flows; infrastructure and dcvelopment; groundwater sustainability-availability; demand and allocation; and groundwater quality.
The Natural Heritage Ministerial Board has approved a continuation of the Audit from 2002 through to 30 June 2007.

The Australian Government, through the Department of Education, Science and 'Training is funding a new International Centre of Excellence in Water Resource Management to be based in Adelaide.
The Centre will be established by the Water Australia Ckoup, a collaboration between sixteen institutions including six universities, TAFE South Australia, the CSIRO, key water research centres, South Australian government agencies and key industry partners.

The Centre will work across the full spectrum of water resource management issues, from governance and policy aspects through to scientific, technical and engineering issues.
The collaborative Australian Water Conservation and Reuse Research Program is currently being developed by CSIRO and the Australian Water Association to f i l l knowledge gaps and provide firm foundations for policies and practices relating to water conservation and reuse.

This program is supported under CSIRO's Water Sor a Healthy Country Flagship.
The Australian Water Conservation and Reuse Research Program is supporting research into water conservation, reuse, water sensitive urban design, integrated water management, health considerations, new technologies, economic implications and arrangements, and agricultural and environmental issues The lnternational Science Linkages programme (ISL), delivered by the Department of Education, Science and 'Training, is providing grant funding to the Oz AQUARBC project to develop integrated concepts in water reuse.
The project contributes to 4 Work Packages (WP) of the European 5th Framework Project AQUAREC: Integrated Concepts in the Reuse of Upgraded Wastewater.

The objective is to provide knowledge for a rational strategy for municipal wastewater reclamation and reuse as a major componcnt of sustainable water management practices.

Through the Natural Heritage Trust and Ausaid, support is also provided to facilitate international access to Australian Science.
For example, the Australian Water Partnership provides urban water systems knowledge to Southeast Asia and the Pacific as part ofthe Global Water Partnership.

Recommendation D: Efforrs be made to enhance awareness of the environmental issues associated wifh water use and management.
RESPONSE The Australian Government supports, and is implementing, this recommendation A key element of the National Water Initiative (NWI) is to engage water users and other stakeholders in achieving the objectives of the NWI, including by ensuring that sound information is available to all sectors at key decision points (Clause 93 of the N WI).
Signatory state and territory governments have agreed to ensure open and timely consultation with all stakeholders in relation to pathways for returning overdrawn surface and groundwater systems to environmentally sustainable extraction levels, the periodic review of water plans and other significant decisions that may affect the security of water access entitlements or the sustainability of water use (Clause 95 of the NWI).
State and territory governments have also agreed to provide accurate and timely information to all relevant stakeholders regarding: progress with the implementation of water plans, including the achievement of objectives and likely future trends regarding the size of the consumptive pool; and e other issues relevant to the security of water access entitlements and the sustainability of water use, including the science underpinning the ideniif cation and implementation of environmental and other public benefit outcomes.
(Clause 96 of the NWI) Other agreed actions under the NWI that can enhance awareness of the environmental issues associated with water use and management are: Jurisdictions have agreed to prepare water plans, informed by best available science, socio-economic analysis and community input, for surface water and groundwater management units in which water access entitlements are issued.
Broadly, water plans will describe the environmental and other public benefit outcomes for water systems and define appropriate management arrangements.

Water plans will also determine the shares in the consumptive pool, or the amount of a water resource available for consumptive use, and the rules to allocate water during the life of the plan.
In the implementation of water plans, jurisdictions will monitor the performance of water plan objectives, outcomes and water management arrangements and provide regular public reports (Clauses 36-40 ot'the NWI).

o Jurisdictions have agreed to periodic independent audit, review and public reporting of the achievement of environmental and other public benefit outcomes and the adequacy of water provision and management arrangements in achieving those outcomes (Clause 79 of the N WI).
State and territor) govemnw-ds ha\e agreed to de\elop narional guidelind\ lbr mctronolitan cuscomcr~' jvater accounts that providc infol~nation on thcir water u3c relati;e to equivalent households in the community (Clause 66 on the NWI).

With regard to demand management, jurisdictions have agreed to introduce legislation to implement the WELS and for the regulator to be undertaking compliance activity by 2005.
They have also agreed to develop and implement a 'Smart Water Mark' for household gardens, including garden irrigation equipment, garden designs and plants (Clause 91 of the NWI).

0 I'hc el'tltctiveness o f temporary \rater restrictions and associated public education >rratcgics will be revie\wd and the s c o p lnr extending lo\+-level nater rr.srrictions as standard practice will be assessed (Clause 9 1 of the NWI).
The Australian Government Water Fund's Community Water Grants programme will provide $200 million over six years to promote a culture of wise water use.

Local schools, communities and conservation groups will be able to obtain grants of up to $50,000 for projects to increase water use efkiciency, improve river or groundwater health, or improve community education on water saving.

'The community will identify worthwhile projects at the local level and see them through to completion.
Projects could include, for example, cost effective local stormwater harvesting and channel care, partnerships for efficient water use, and river care and riverbank repair.

The State of the Environment Report is a key Australian Government report on the status of our environment, the conditions and pressures facing our environment, and the responses of all stakeholders to those pressures.
The "Human Settlements" theme provides information regarding the environmental issues associated with urban water use and management.

The State ofthe Environment report is available on-line at http:llwww.deh.gov.au/soelindex.html.

In recognition of growing concern for water quality, the Australian Government initiated Waterwatch in 1993.
Waterwatch is a national community-based water-monitoring network with a goal of involving community groups and individuals in the active protection and management of their local waterways.

In urban centres Waterwatch raises community awareness and understanding about water and catchment issues as it relates to stormwater.
Waterwatch programs in urban and regional areas have also developed and implemented a number of stormwater education campaigns, such as stormwater drain stencilling, and have engaged the community in monitoring and managing their local creeks.

During the Year of the Built 1:nvironmcrit irl 2004, thc Australian Go\emrnenr worked uith the M'ester~i Australian (io\crnment and the Ru>al Au.
;tralian Institute of' Architects on a national program of events and activities to showcase some of Australia's most valued and innovative urban structures.

Events were held which explored how Australians can contribute to a more positive and sustainable future, by demonstrating best practice and imparting the knowledge and skills to promote vibrant and healthy urban environments.
They highlighted how, through managing industrial or household wastes, air and waterway pollution, reducing greenhouse gas emissions and efficient water and energy consumption, Australians can contribute to a more sustainable Australia The National Australian Built Environment Rating System will enhance the awareness of building owners, users and tenanls regarding the environmental performance of existing commercial office and residential buildings across a suite of key environmental impact areas, incfuding water use, stormwater runoff and pollution, and sewage outfall volume.
The domestic water savings website initiated under the National Water Savings lnitiative lists ideas and technologies for saving water around the home, garden, business, farm and public places.

'She National Land and Water Resources Audit provides a comprehensive national appraisal of Australia's natural resource base and an independent, objective assessment of the extent of degradation.
The Audit is publicly available at www.nlwra.gov.au The Australian Bureau of Statistics (ABS) has collected data on household water use and conservation measures since 1994.

These data show more households are using water saving devices in homes (e.g.

dual fush toilets and reduced flow shower heads) as well as adopting water saving practices in the garden (e.g.

usingmutch and recycled water).

These national data were last produced in 2004 and are next scheduled for collection in 2007.
ABS publications are available from www.abs.gov.au.

Recommendation E: Water prices should better reflect the signwcant impacts of current extraction and discharge.

Any extra revenue generated should be used to improve performance in this area.

RESPONSE: The Australian and state and territory governments have and continue to pursue appropriate water pricing through the 1994 COAG Water Reform Framework and the 2004 National Water Initiative (NWI).
The water reforms are also relevant to local government in jurisdictions where local government utilities providc urban water and wastewater services.

The objective of the Water Reform Framework is the efficient and sustainable reform of' the Australian water industry.

Guidelines for applying the pricing commitments in thc Water Reform Framework were provided by the then Agriculture and Resource Management Council of Australia and New Zealand in 1998.
The pricing commitments 16 sought to achieve the economically efficient use of urban and rural water resources, infrastructure assets and government resources devoted to the management of water.

in relation to its assessments of implementation of NCP related water reforms, the National Competition Council considers the urban pricing reforms to be substantially complete.

Almost all metropolitan and regional urban water businesses charge for water on the basis of the votume of water used.
In addition, the prices of water and wastewater services are set to recover eflkient business and rcsourcc management costs (at least at thc lower bound of cost recovery) including the cost of appropriate asset refurbishment and augmentation, while avoiding monopoly pricing.

All jurisdictions now use independent regulators to set or review prices or pricing processes.
However, some elements of the pricing reforms, such as incorporating the costs of externalities are still to be fully addressed by the states and territories, and some urban water businesses are yet to achieve upper bound full cost recovery.

Generally, there is no charge for the water itself (other than i n the Australian ~ a ~ i t a l ~ ~ e r r i t o r y , charge of 20 cents).

The NWI aims to complement and extend the 1994 COAG Water Reform Framework.
Under the NWI, signatory governments have agreed to implement water pricing and institutional arrangements which: Ghich applies a pe;kilolitre water extraction promote economically efficient and sustainable use of water resources, water infrastructure assets and government resources devoted to the management of water; 0 ensure sufficient revenue streams to allow efficient delivery of the required services: facilitate the efficient functioning of water markets, including inter-jurisdictional water markets, and in both rurdl and urban settings; * give effect to the principles of user-pays and achieve pricing transparency in respect of water storage and delivery in irrigation systems and cost recovery for water planning and management; 0 avoid perverse or unintended pricing outcomes; and * provide appropriate mechanisms for the release of unallocated water.
(clause 64 of the N WI).
With regard to water pricing which reflects the impacts of water use, in accordance with NCP commitments, state and territory governments have agreed under the N WI to bring into effect pricing policies for water storage and delivery in rural and urban systems that facilitate efficient water use and trade in water entitlements, including through the use of:- * consumption based pricing; 0 full cost recovery for water services to ensure business viability andavoid monopoly rents, including recovery of environmental externalities, where feasible and practical; and consistency in pricing policies across sectors and jurisdictions where entitlements are able to be traded (clause 65 of the NWI).
Further to this, state and territory governments have agreed to specific actions regarding pricing in metropolitan areas, including continued movement towards upper bound pricing and the development of pricing policies for recycled water and stormwater that are congruent with pricing policies for potable water, and stimulate efficient water use no matter what the source (clause 66 of the NWI).
With regard to environmental externalities, jurisdictions have agreed to: 4 continue to manage environmental externalities through a range of regulatory measurm; e continue to examine the feasibility of using market based mechanisms such as pricing to account for positive and negative environmental externalities associated with water use; and e implement pricing that includes externalities where found to be feasible (clause 73 of the NWI).
These and other pricing reforms are scheduled under the NW1 to be implemented by jurisdictions by the end of 2008 with some actions implemented on an ongoing basis.

Implementation will be overseen by the NRMMC and subject tothe biennial assessments of progress undertaken by the Commission.

Australians generally be encouraged and assisted to use less water, recycle more effluent and signijlcanfly reduce the impact that urban development and its stormwafer collection and transport has on natural systems.
RESPONSE: The Australian Government supports and is implementing this recommendation.

The objectives of the National Water Initiative (NW1) include, among other things, policy settings which facilitate water use efficiency and innovation in urban and rural areas.

Urban water reform is a key element of the NWI.


Parties to the NWI agreed that the outcome for urban water reform is to, among other things, increase water use efficiency in domestic and commercial settings; encourage the re-use and recycling of wastewater where cost effective; and encourage innovation in water supply sourcing, treatment, storage and discharge.
Parties agreed to undertake specific actions with regard to demand management, including: e implementing the Water Efficiency Labelling Scheme and a 'Smart Water Mark' for household gardens (clause 91(i) and (ii) of the N WI); and e reviewing the effectiveness of temporary water restrictions and associated public education strategies, and assessing the scope for extending low-level restrictions (clause 91 (iii) of the NWI).
Parties also agreed to undertake a number ofactions with regard to innovation and capacity building to create water sensitive Australian cities by the end of 2 0 6 , including: 0 developing national health and environmental guidelines for priority elements of water sensitive urban designs; 4 developing national guidelines for evaluating options for water sensitive urban developments; e evaluating existing 'icon water sensitive urban developments' to identify gaps in knowledge and lessons for future strategically located developments; reviewing the institutional and regulatory models for achieving integrated urban water cycle planning and management, followed by preparation of best practice guidelines; and * a review of incentives to stimulate innovation.
(Clause 92 of the NWI) The Australian Government's $2 billion Australian Government Water Fund can also help to encourage and assist Australians to use less water, recycle more effluent and reduce urban impacts on natural systems.

Under the Water Smart Australia programme of the Australian Government Water Fund, $1.6 billion will be invested over 5years to accelerate the smartest technologies and practices in water use across Australia.
The types of projects that could be eligible for funding include, but are not limited to, on-farm water use efficiency improvements; recycling and re-use of stormwater and 'grey' water; more efficient storage facilities: alternatives to ocean outfalls and better management of sewerage; and developing water efficient housing design.
The AGWF Community Water Grants programme can also assist communities to increme water use efficiency, improve river of groundwater health or improve community education on water saving.
- Other Australian Government initiatives that can encourage and assist Australians to use water wisely and more efficiently and with less impact on natural systems include: the Sustainable Cilies programme, particularly the WELS scheme, NABERS and the ICLEl's local government water campaign; 0 e the Sustainable Schools initiative; the National Water Savings Initiative; and research activities such as CSIRO's Water for a Healthy Country flagship and the Australian Waler Conservation and Reuse Research Program, the Oz AQUAREC' programme, CRC research activities.
Specafic Recommendation I : A National Water Policy The development of a National Wuter Policy (NWP) through a National Water Partnership Framework.

RESPONSE: The Australian Government supports and is implementing this recommendation.

The Australian Government and all state and territory governments, except Tasmania and Western Australia, agreed the National Water Initiative (NWI) on 25 June 2004.

Tasmania signed on 2 June 2005 and Western Australia signed on 6 April 2006.
The NWL provides a detailed plan, which sets out activities to be taken by signatory governments to improve the way water is managed.

Many of the components of the National Water Policy proposed by the Senate Environment, Communications, Information Technology and the Arts References Committee (ECITA) are encompassed within the NWI or are being addressed through other government initiatives.

The NWI was developed and is being implemented in partnership with signatory state and territory governments.
A range of stakeholders were involved with thc NWl's development.

A discussion paper was developed and a formal consultation process was conducted in March and April 2004 involving key stakeholders in each of the states and territories.

The NWI also puts mechanisms in place for stakeholder involvement during its implementation (clause 93-97 of the N WI).

~ C ~ ~ t ( s llw Vdw o/ i t c ~ i ~ ~ I W i w p i q mio ~ I I h r s &Itviiagt v;t,~rl ( I / !
~ W I If ((/I The National Water Commission (NWC) has been established under the NWI to provide advice on national water issues and to assist with the effective implementation of the NWI.

In undertaking these tasks, the NWC will work with state and territory governments and consult with stakeholders where relevant.
Ministerial councils such as the Natural Resource Management Ministerial Council, the Environment Protection and Heritage Council and the Local Government and Planning Ministerial Council, involve all jurisdictions and allows for discussion and resolution of cross-jurisdictional issues of national significance.

Intergovernmental agreements such as the National Action Plan for Salinity and Water Quality and the National Water Initiative involve all levels of government and enable stakeholder involvement.
Specific Recommendation 2: The National Water Partnership Framework The National Water Partnership Framework befween all levels of governmenf, research institutions, catchment management authorities and thegeneral public should include: * refarm to simplify institutional arrangements for urban water managemen$ an examination of the effectiveness of COAG water reforms in achieving sustainable water management; collaboration between levels of government and all stakeholders; participation by local communities; * consideration of consumption targets in water service provider licences or revenue caps for retail water distributors; and @ developing a system of water conservation targets in operating licences.
RESPONSE: The Australian Government supports and has implemented much of this recommendation as outlined below.
Reform to simplify institutional arrangements for urban water management: Under the 1994 Water Reform Framework, COAC agreed the following with regard to institutional reform: 4 * * - to develop administrative arrangements and decision-making processes to ensure an integrated approach to natural resource management; to adopt an integrated catchment management approach to water resource management and set in place arrangements to consult with representatives of local government and the wider community in individual catchments; to the principle that, as far as possible, the roles of water resource management, standard setting and regulatory enforcement and service provision he separated institutionally and that this occur as soon as practicable; to the need for water services to be delivered as efficiently as possible and that comparisons of inter-agency performance be further developed, with service providers sceking to achieve international best practice; 0 that the arrangements in respect of service delivery organisations in metropolitan areas in particular should have a commercial focus; and to the principle that constituents be given a greater degree of responsibility in the management of irrigation areas, for example, through operational responsibility being devolved to local bodies, subject to appropriate regulatory frameworks being established.
The National Water Initiative (NWI) builds on and extends the 1994 Water Reform Framework.

Parties to the NWI agreed to reform institutional arrangements to achieve a number of outcomes, including: 0 facilitating intraand interstate water trade (clause 60 of the NWI); best practice water pricing (clauses 64 and 74-77 of the NWI); integrated management of environmental water (clauses 78 and 79 of the N WI); and integrated urban water cycle planning and management (clause 92 of the NWJ).
Parties to the NWI also agreed that as far as possible, the roles ofwater resource management, standard setting and regulatory enforcement and service provision continue to be separated institutionally (clause 74 ofthe NWI).

Such institutional arrangements are considered necessary by governments for providing effective and efficient water management for urban and rural use that optimises economic, social and environmental outcomes.
a An examination of the effectiveness of COAG water reforms in aclaievmg sustainable water management: The 1994 COAG water reforms were incorporated as part of the National Competition Policy (NCP) in 1995.

Under the NCP arrangements, the National Competition Council (NCC) assessed governments' application of the water reforms in 1999,2001, 2002,2003 and 2004.

It also conducted several supplementary and deferred assessments.
Under the NWI, the scheduled 2005 NCP assessment for water will be conducted by the newly established National Water Commission (NWC) (clause I 1 of the NWI).

The NWC will also undertake a number of activities related to examining the effectiveness of water reforms agreed under the N WI as they are implemented over the next ten years.
This will include: an initial assessment of Australia's water resources and the governance, management and regulation of those resources; to determine whether the plans of the parties to the NWI for implementing the NWI are consistent with the objectives, outcomes, actions and timelines stated in the N WI.
and to accredit those plans in accordance with the N WI; to advise the Australian Government or COAG, where relevant, on whether the parties Lo the N WI are implementing their commitments under the NWI; .
e every two years starting in 2006-07, to assess against national benchmarks the * performance of the water industry in managing and using Australia's water resources and to advise COAG of those assessments; for 2006-07 and 2008-09, assessing the progress of parties to the NW1 towards achieving the objectives and outcomes stated in, and within the timelines required by, theNWI.
The NWC will advise COAG of its assessments and provide advice and recommendations on actions that the parties might take to better achieve those obiectives and outcomes; e in"2010-I I, reviewing the NWI comprehensively and providing advice to COAG, including assessing: - the N WI against performance indicators that are to be developed by the Natural Resource Management Ministerial Council in consultation with the NWC; - the extent to which actions taken under the NWI have improved thc sustainable management of Australia's water resources and have contributed to the national interest; and - the impact of the implementation of the NWI on regional, rural and urban communities.
e Collaboration between levels of government and all stakeholders; and * Participation by local communities: The National Water initiative (NWI) was developed and is being implemented through a collaborative process with relevant state and territory governments and relevant stakeholders.

.
.

- During the development of the NWI, a discussion paper was developed and a formal consultation process was conducted in March and April 2004 involving governments consulting with key stakeholders in each of the states and territories.

The Australian Government recognises the importance of participation by local communities, especially on matters that affect them.
To this end, parties to the NWI have agreed to engage water users and other stakeholders in achjeving the objectives of the N WI by improving certainty and building confidence in reform processes, transparency in decision making and ensuring sound information is available to all sectors at key decision points (clauses 93-96 of the N WI).
* Consideration of consumption targets in water service provider licences or revenue caps for retail water distributors: The National Water Initiative (NWI) approaches demand and supply issues through appropriate water pricing, although individual jurisdictions have the flexibility to introduce consumption targets.

Water conservation targets were included in Sydney Waters' Operating License in 1995.

Currently Sydney Water is aiming at a target of364 L per capita per day, falling to 329 1, in 2010- 1 1.
Rather than introducing revenue caps for retail water distributors, the National Water lnitiative (NWI) establishes pricing policies based on consumption based pricing and full cost recovery for water services to ensure business viability and avoid monopoly rents.
To provide greater transparency regarding the retail water distributors' revenue, under the NWI, independent bodies will set or review prices, or price setting processes, for water storage and delivery by government water service providers and will publicly review and report on pricing.
In addition, state and territory governments are required to report independently, publicly, and on an annual basis on benchmarking of pricing and service quality tbr metropolitan, non-metropolitan and rural water delivery agencies.

(clauses 65- 77 of the N WI).

0 Developing a system of water conservation targets in operaiing licences: Whether to include water conservation targets in operating licences is a decision to be determined by the relevant licensing authority in each jurisdiction.
This enables such targets to be determined according to local or regional circumstances.

Schedule D of the National Water initiative (NWI) sets out the principles for regulatory approvals enabling water use and works at a particular site.
Specific Recommendatjon 3: Setting targets The NWP should include agreed State and local targets with timeframes for: 0 catchment protection and rehabilitation; 0 0 efJ2int reuse; rehabilirating natural waterways and wetlanuk; 0 0 stormwater retention andpollution removal; subsidies to encourage domestic rainwater tanks; * better maintenance and monitoring and reporting of leaks; 4 per capita water consumption reductions; long term infrastructure investment; 0 0 decentralised, small scale sewage freatment; and 0 reducing efluent to ocean outfals.
RESPONSE: The Australian Government does not support this recommendation.

A national water policy framework is not the appropriate forum for setting state and local targets and timeframes for many of tbe areas listed in the recommendation.
The National Water Initiative (NWI) provides a management framework for addressing many of the areas listed within agreed timeframes, and provides state and territory governments with the flexibility necessary for tailoring solutions to suit local or regional needs and circumstances.
Catchment protection and rehabitifation; and e Rehabilitating natural waferways and wetlands: With regard to catchment protection and rehabilitation and rehabilitating natural waterways and wetlands, a key element of the NWI is integrated management of environmental water.
Parties lo the NWI have agreed that the outcome for integrated management of environmental water is to identi@ within water resource planning frameworks the environmental and other public benefit outcomes sought for water systems and to develop and implement management practices and institutional arrangements that will achieve those outcomes by: 0 identi@ing the desired environmental and other public benefit outcomes with as much specificity as possible; * establishing and equipping accountable environmental water managers with the necessary authority and resources to provide sufficient water at the right times and places to achieve the environmental and other public benefit outcomes, including across SlatelTerritoly boundaries where relevant; and optimising the cost effectiveness of measures to provide water for these outcomes (clause 78 of the NWI).
In 'ddition, the Australian, state and territory governments, through the Natural Resource Management Ministerial Council, agreed to adopt a common framework for developing national standards and targets.

The Council has endorsed two national level documents to assist with setting targets, monitoring, evaluation and reporting on natural resource management.
They are the National Framework for Natural Resource Management Standards and Targets and the National Natural Resource Management Monitoring and Evaluation Framework.

The standards and targets framework sets out national outcomes that investment in natural resource management, through programs such as the National Action Plan for Salinity and Water Quality and the extension of the Natural Heritage Trust, should work to achieve.
The framework also identifies 'matters for target', designed to help focus efforts to achieve the national outcomes.

As part of the regional planning process, regional NRM plans prepared by the regional bodies will need to set targets for all relevant 'matters for targets' listed in the framework.
Effluent reuse; -- Stormwater retention andpollution removal; * Decentralised, small scale sewage treatment; and Reducing effluent to ocean outfalls: An outcome for urban water reform under the NWI includes encouraging the re-use and recycling ofwastewater where cost effective (clause 90 of the NWI).
The NWI includes a number of related actions to be implemented by 2005 or 2006, including actions to facilitate the uptake of water sensitive urban developments, to achieve integrated urban water cycle planning and management and to stimulate innovation (clause 92 of the NWI).
Other Australian Government initiatives such as the National Guidelines for Water Recycling - Managing Health and Environmental Risks and the OzAquarec program will potentially provide guidance and information necessary to facilitate increased reuse of wastewater and reductions in effluent discharges to ocean outfalls.
The Natural Heritage Trust's Coastal Catchments Initiative focuses on coastal water quality hotspots, in particular priority catchments draining to the Great Barrier Reef Lagoon, as well as urban areas and other coastal catchments throughout Australia.

This national Natural Heritage Trust program aims to improve the condition of urban river estuaries and coastal waters through implementation of the Australian Government's Framework for Marine and Estuarine Water Quality Protection.
The planning and management kamework addresses pollutant loads and environmental flows so as to protect the Environmental Values orreceiving waters consistent with the National water quality Management Strategy's National Policies for Provision of Water for the Environment.

Information on the program is available on-line at http:Nwww.deh.gov.adcoasts/index.
html In addition, the Water Smart Australia programme of the Australian Governmen1 Q'ater lund \\.ill itiwst $ 1 .h billion o w r six sears to accelerate r h ~ smartest tcchnologi?.

; and practices in water use across Australia.

Recycling and reuse of stormwater and 'grey' water, alternatives to ocean outfalls, better management of sewerage in coastal cities and towns and developing water efficient housing design are examples of the types of project that could be eligible for funding under the programme.
- e Long term infrastructure investment: The Australian Government Water Fund (AGWF) does not include targets for long-term infrastructure investment, however it will provide $2 billion over 6 years to assist with funding practical, on-the-ground water solutions.

Subsidies lo encourage domestic rainwater tanks: It is a responsibility of state jurisdictions or local governments or authorities to determine if subsidies for rainwater tanks should be provided.
The utility and cost-effectiveness of rainwater tanks as an alternative source of water supply varies according to local conditions.

As a result, setting targets may not always be appropriate.
Better maintenance and monitoring and reporting of leaks: With regard to better maintenance and monitoring and reporting of leaks, state and territory governments have agreed under the Natural Water Initiative (NWI) to prioritise and implement, where cost effective, management responses to water supply and discharge system losses including leakage, excess pressure, overflows and other maintenance needs by 2006 (clause 91 of the N Wl).
The Australian Government Water Fund can also provide assistance for these initiatives.

On 19 May 2005, the Prime Minister announced the tirst projects to receive funding under the Water Smart Australia programme.

The programme will provide $3.15 million over four years towards an investment of$9.45 million in a Gold Coast project which wiil use innovative pressure management techniques to secure additional water supply for the city from realised water savings of between 7 and 10 gigalitres per annum.
It will establish 108 separate metered areas in Gold Coast's existing water supply reticulation system and install pressure reducing valves in the pipes to reduce leakage by approximately 14 per cent of total city consumption.

The project is the largest and most comprehensive pressure reduction programme undertaken by an Australian water utility.
It will play a significant role in demonstrating to the Australian water industry the benefits of water loss and pressure management as a means of improving water distribution efficiency, water use efficiency at the customer level and realising additional cost-effective water supplies.

These outcomes will make a significant contribution to achieving the urban water industry objectives of the National Water Initiative.
The Australian Government investment allows the project to be implemented over a shorter time period, which will maximise the water savings benefits and the demonstration value of the project.
w Per capita water consumption reductions: The NWI does not set targets for per capita water consumption reductions, however it seeks to put in place policy, institutional and regulatory settings that increase the productivity and efficiency of water use in Australia and ensure the health of river and groundwater systems.
Specific Recommendation 4: Setting standards The National Water Polky (NWP) should set standards that include: 0 model planning codes that incorporate wafer sensitive urban design principles, supporfed by multidisciplinary training; national water efficiency standards and rating schemes for appliances and building system; best practice guidelines in: - the design of stormwater infrastructure and management, - urban forms that minimise impervious areas, - greywater reuse, - on-site rainwater collection, and - small-scale sewage treatment systems; w bestpractice water management standards in the Building and Plumbing Codes of Australia developed in collaboration with the Australian Building Codes Board and the National Plumbing Regulators Forum RESPONSE: 'The Australian Government supports some of the elements of this recommendation as outlined below.
27 Model planning codes that incorporate water sensifive urban design principles, supported by multidiscipiina y training: Planning codes are the responsibility of state and territory governments.
However, governments are seeking to facilitate the uptake of water sensitive urban design through a number of actions agreed by signatory governments to the National Water Initiative (N WI), including: 0 developing national health and environmental guidelines for priority elements of water sensitive urban designs (initially recycled water and stormwater) by 2005; e developing national guidelines for evaluating options for water sensitive urban developments, both in new urban sub-divisions and high rise buildings by 2006; evaluating existing 'icon water sensitive urban developments' to identify gaps in knowledge and lessons for future strategically located developments by 2005; reviewing the institutional and regulatory models for achieving integrated urban water cycle planning and management, followed by preparation of best practice guidelines by 2006; and 0 reviewing incentives to stimulate innovation by 2006 (clause 92 of the NWI).
In addition, the Australian Government Water Fund can provide funding assistance to develop water efticient housing design if proposals meet the relevant criteria.

o National water efficiency standards and rating schemesfor appliances and building systems: The Australian Government supports and is implementing national water efficiency standards and rating schemes for appliances and building systems.
Key features of the Suslainable Cities programme include the national Water Efficiency Labelling and Standards (WELS) scheme which includes mandatory labelling and minimum performance standards 11)r agreed appliances and a green buildings programme that includes rhc Kativnal Australian Huilt environment Ratines S\stcni tNABEIIS) that \ \ i l l cn.

;urc that future building projects are more environmentally-friendly.
NABERS enables building owners, users and tenants to rate the environmental performance of existing commercial office and residential buildings across a suite of key environmental impact areas including water use, stormwater runoff and pollution, and sewage outfall volume.

- .
- 0 Best prac#ice guidelines in: - the design of stormwater infrastructure and management, - urban forms that rninlmise impervious areas, - grey water reuse, - on-site rainwater collection, and - small-scale sewage treatmenf systems: With regard to best practice guidelines, in July 2003, the Local Government and Planning Ministers' Council (LGPMC) agreed to work in partnership with the Natural Resource Management Ministerial Council and the National Environmental Protection and Heritage Council on the issues of water recycling and water sensitive urban design.
This work includes working on the National Guidelines For Water Recycling - Managing Health and Environmental Risks and will assist in meeting commitments under clause 92 ofthe NWI.

The Institution of Engineers has released the drafi Australian Runoff Quality (ARQ), which is a design guideline that provides an overview of current best practice in the management of urban stormwater in Australia.
It contains: * Procedures for the estimation of a range of urban stormwater contaminants; Design guidelines for commonly applied stormwater quantity and quality management practices; 0 Procedures for the estimation of the performance of these practices; and * Advice with respect to the development/consideration of integrated urban water cycle management practices.
The Urban Stormwater Best Practice Environmental Management Guidelines (BPEMG), published by CSIRO in 1999, supports the implementation of best practice by all key stakeholders in this field.

EPA Victoria, Melbourne Water, the Municipal Association of Victoria, local government, industry and the Victorian Department of Natural Resources and Environment developed the Guidelines.
The enHealth Council has revised the monograph "Guidance on the use of Rainwater Tanks" which was initially recently by the precursor group, the National Environmental Health Forum.. To date there are no national best practice guidelines for small-scale sewage treatment systems, however each State and Territory have their own requirements for these systems.
Best pructice water management stattdurds in the Building und Pluntbing Codes of Australia develuprd in culluboratiot~ with the ,4ustrulian Building Codes Bourd und the National Plumbing Rrgulators Forum In ucmsul:ation M it11 industy and a riinge ol'srakeholdcrs (including the Australian Building Codes Hoard and S~andurds Ausrralia).
the Australian Gnernn~rnt recenrl) commenced a multi-year project to assess the feasibility ol; and scope for, incorporating sustainability considerations into national building codes and standards.

While the project is only in the preliminary stages, it is anticipated that sustainable water management issues may be investigated.
Specijic Recommendation 5: Better monitoring, reporting and data The Nutional Water Parlnership Framework include measures to achieve better monitoring, reporling and data access, including: monitoring systems to gauge the effectiveness of urban water management strategies and, in particuhr, the irry,acts on receiving waters; * national& consislent reporting mechanisms on water management; and e a regularly updated, spatially based information system on water consumption, sewage and drainage production.
RESPONSE.

The Australian Government agrees with the need for robust monitoring, =porting and accounting of water use and is implementing this recommendation.

This information is essential to refine hydrologic models, improve water resource management and provide up to date information on access and consumption of water.
- The objectives of the National Water Initiative (NWI) include, among other things, water accounting which is able lo meet the information needs of different water systems in respect to planning, monitoring, trading, environmental management and on-farm management.
Under the N WI, jurisdictions have agreed to water resource accounting with the outcome of ensuring that adequate measurement, monitoring and reporting systems are in place to support public and investor confidence in the amount of water being traded, extracted for consumptive use and managed for environmental and other public benefit outcomes (clauses 23 and 80 of the NWI).
Specific actions under the NWI include: e benchmarking jurisdictional water accounting systems on a national scale; developing and implementing: - accounting system standards; - standardized reporting formats; and - water resource accounts that can be reconciled annually and aggregate to produce a national water balance; and * developing and applying principles for environmental water accounting; improving rl~e coordination ol'and dc\clopin~ partnerships in darn collec~ion and nliinegemcnt s!stc'~n\ to thcililate h d t r r intnrniation sharing: * identifying best practice in data management systems for broad adoption; kyptms:: 10 Uw W 7 i e qf W&:F: h!qidrj, iirlo .,IW!.P&~~ ',s ; M 1 : 7 , 1 q m w i t $ !
fd101r W 1 k r .

undertaking metering on a consistent basis in particular circumstances; and developing a national meter spwitication.

national meter itandards and national standards fur anciilsr) data collection systems associated \r ith meters (clauses 8 1-88 of the N WL).

With regard to reporting, parties to the NWI have agreed to develop and apply national guidelines covering the application, scale, detail and frequency for open reporting (clause 89 of the NWI).
Parties have also agreed to improve the coordination of data collection and management systems (clause 86 of the NWI).

9 The Raising National Water Standards programme of the Australian Government Water Fund will provide $200 million over 6 years to lift Australia's national capacity to measure, monitor and manage water resources.
Fundjng under the programme will provide support for, among other things, improved water accounting through a nationally consistent system for collecting and processing water-related data to create conf dence in decisions by investors in the water market and the water industry more broadly, and to improve the setting of sustainable flow levels in rivers.

The Australian Government also has a number of other initiatives with regard to water- related monitoring and reporting.
The National Land and Water Resources Audit has developed the Australian Natural Resources Atlas and the Australian Natural Resources Library to provide fiee access over the Internet to natural resources information.
These arrangements provide access to integrated environmental, natural resource, social and economic information including water availability, sustainability of use and environmental flows, infrastructure and development, groundwater sustainability-availability, demand and allocation, and groundwater quality.

I'he Australian Bureau of Statistics (ABS) released the Water Account for 2000-01 in May 2004.
The Water Account presents information on the supply and use of water in the Australian economy compiled in accordance with the System of lntegrated Environmental and Economic Accounting (SEEA).

The information is presented by industry, state and territory, and source of water used.

The Water Account also provides information on water stocks, environmental flows and water trading and highlights some issues relating to consistency of data sources.
The next water account is planned in respect of 2004-05 and a number of additions to the account have been proposed.

The ABS has a draft Water Information Development Plan that examines the supply and use of water data.

The plan outlines major data sources and assess these against information needs with the aim of identifying duplication of efforts, data gaps, data deficiencies and ways these issues can be addressed.
The ABS has also established the Water Statistics Users Group, with representatives from all Australia, State and Territory Governments as well as industry representatives and scientific experts.

This group advises the ABS on water issues.

The State of the Environment Report provides national reporting ofthe status of our environment.

In the 2001 report, the 'Human Settlements' theme reported on water availability and use, water quality and water recycling.
It is available on-line at http:llwww.deh.gov.auisoe/index.html.

The next State of the Environment Report is due for release in 2006-07.

Spec@ Recommendation 6: The Commonwealth examine legislative and regulatory opportunities for reporting on water consumption.

RESPONSE: The Australian Government supports reporting on water consumption.
Parties to the National Water Initiative (NWI) have agreed to develop and apply national guidelines by 2007 covering the application, scale, detail and frequency for open reporting with regard to water accounts.

The guidelines are to address: .

metered water use and associated compliance and enforcement actions; trade outcomes; environmental water releases and management actions; and * availability ofwater access entitlements against the rules for availability and use (clause 89 of the NWI).
I'wties to the NN'l hate also agreed to develop national guidelines for metropolitan customers' water accounts hat pro\ ide inti>rmation on their \rater use relati\e ro equivalent households in the community (clause 66 of the NWI) Spec~j?c Recommendation 7: Funding andfnuncing better water management The Commonwealth, in conjunction with the Slates and Territories and the private sector, consider funding mechanism for a comprelrrnsive research effort to include: e Integrated Urban Water Management; reuse of stormwaler and wastewater; e water quality issues; e a national water reuse research program, coverlng: - socio-economics of reuse, vor exumple, factors affecting public confdence in products grown with reclaimed water, and methods to appropriately account for externalities in investment decisions), - innovative technologies for reuse (in collaboration with private sector investors, to reduce costs of treatment of reclaimed waters), - environmental fate of constituents {viruses, endocrine disruptors, organic chemicals, nuirienrs, salt and their re-entry into the human food chain or human exposure, or ecosystem), and - h u m n heulth risk assessment (toxicology and endocrinology studies and application of risk bused methods); 4 r groundwater management; e catchment management; e small scale treatment technologies; low energy sludge dewutering; leak detection; low cost salinity removal; small scale water treatment and recycling plants for use i n domestic, commercial and industrial processes; and water-independent housing.
RESPONSE: The Australian Government agrees with the intent ofthis recommendation and already makes substantial investments in water-related research.

The National Water Initiative (N Wl) recognises that significant knowledge and capacity building is needed to support its ongoing implementation.
The NWI also recognises that there is significant national investment in knowledge and capacity building in water, including through the Cooperative Research programme, CSIRO Water Flagship and Land and Water Australia, state agencies, local government and higher education institutions.

Scientific, technical and social aspects of water management are multi-disciplinary and extend beyond the capacity of any single research institution (clauses 98 and 99 of the N WE).
Under the NWI, signatory governments have agreed to: 0 0 identify the key knowledge and capacity building priorities needed to support ongoing implementation ofthe N W1; and identify and implement proposals to more effectively coordinate the national water knowledge effort.

(Clause I 0 1 of the N WI).

The Raising National Water Standards programme of the Australian Government Water Fund will invest in lifting Australia's national capacity to measure, monitor and manage its water resources.
Under the Raising National Water Standards programme, $200 million will be invested over six years.

The National Land and Water Resources Audit, new International Centre of Excellence in Water Resource Management, Australian Water Conservation and Reuse Research Program and & AQUAREC programme are further examples of the Australian Government's commitment to water-related research. "
Specific Recommendafion 8: - Consideration ofpricing andfinancing for bder water use and management water-independent housing.
an examination of the water utility dividendspaid to government; an examination of urbun water pricing to develop full cost recovery water pricing mechanism; an exomination of the effectiveness of current Commonwealfh grants program related to urban water management; and consideration of funding options to implement the policy objectives, including environmental levies, resource 'royalties' or general revenue.

RESPONSE The Australian Government supports this recommendation.
A key element of the National Water Initiative (NWI) is best practice water pricing and institutional arrangements that: a promote economically efficient and sustainable use of water resources, water infrastructure assets and government resources devoted to the management of water; 0 ensure sufficient revenue streams to allow efficient delivery of the required services; facilitate the efficient functioning of water markets, including inter-jurisdictional water markets, and in both rural and urban settings; 34 e give effect to the principles of user-pays and achieve pricing transparency in respect of water storage and delivery in irrigation systems and cost recovery for water planning and management; e avoid perverse or unintended pricing outcomes; and 0 provide appropriate mechanisms for the release of unallocated water (clause 64 of the N WI).
In addition, the Australian Government Water Fund will provide funding to assist with better water use and management.

Investment under the Australian Government Water Fund will be made on the basis that it is consistent with, and helps to achieve, the principles, outcomes and actions of the N WI.

Water-independent housing: Some local councils and water authorities provide subsidies or incentives to assist with water independent housing.
This is best provided on a local scale, as water independent housing may not be viable in all circumstances due to factors such as high costs or local rainfall conditions.

Water independent housing may be eligible for funding under the Water Smart Australia or Community Water Grants programmes of the Australian Government Water Fund if it meets the relevant criteria.
An examination of the water ufiliw dividenh paid to government: With regard to examining the water utility dividends paid to government, under the NWI, jurisdictions have agreed to use independent bodies to set or review prices, or price setting processes for water storage and deiive~y by government water service providers, on a case-by-case basis and to publicly review and report on pricing in government and private water service providers (clause 77 of the NWI).
e An examination of urban water pricingto develop full cost recovery water pricing mechanismsr The N WI also includes pricing policies based on full cost recovery for water services to ensure business viability and avoid monopoly rents, including recovery of environmental externalities, where feasible and practical.

In particular, in metropolitan areas, parties to the NWI have agreed to continued movement towards upper bound pricing (clauses 65 and 66 of the N WI).
* An examination of the effectiveness of current Commonwealth grants program related to urban water management: The Australian Government Water Fund has the potential to invest in projects related to urban water management.

Consistent with Government policy the effectiveness ofthese projects will be examined at the appropriate time.
Consideration of funding options to implemenf the policy objectives, including environmental levies, resource 'royalties' or general revenue: With regard to finding options to implement policy objectives, investment undcr the Australian Government Water Fund will be made on the basis that it is consistent with, and helps to achieve, the principles, outcomes and actions of the NWI.
Specific Recommendation 9: Leading by axample The Commonwealth develop a strategy for progressively upgrading all Commonweulth buildings for high stundart& of water efficiency.

RESPONSE The Australian Government is addressing the water efiiciency of government buildings (including tenancies) and government operations in general as an aspect of the Greening of Government Programme.
Some specific actions related to government water use as part of this programme include the: Energy Data Gathering and Reporting (EDGAR) system currently used for agency energy reporting is being altered to allow agencies to report on their water consumption.

development, in 2005, of a set of National Water Intensity Benchmarks for office buildings and public buildings.

These benchmarks will identie average; good and best practice water intensity for these building types in Australia.
The large data set that will produce these benchmarks for office buildings comprises a variety of building ages and building user requirements.

Agencies will be encouraged to use these benchmarks when commissioning new or refurbished space, and during the operational phase of a building's life-cycle.

release, also in 2005, of an Ecologically Sustainable Development (ESD) Design Guide for Australian Government buildings.

This guide will address issues of water efficiency, reuse and source substitution.
Specific Recommendation 10: The Joint House Deparfment be funded fo change all toilet cisterns in Parliament House to dualjlush and to fit water efficient shower roses.

RESPONSE The Department of Parliamentary Services (DPS) is now the agency responsible for managing the Parliament House building, its plant, equipment and services, and the surrounding landscaped areas on behalf of the Parliament.
Toilet and shower facilities will be progressively upgraded over anumber of years as part of the overail program of building facilities works.

DPS has recently upgraded the toilet facilities in the forecourt car park and toilet and shower facilities in the Health and Recreation Centre.

These facilities were fitted with waterless urinals, dual flush toilets and AAA rated shower roses.