On the one hand we are the globe's driest inhabited continent, having the least river water, the smallest area of permanent wetlands, the most variable rainfall and the lowest run off. On the other hand substantial parts of the country are often under floodwaters and still others receive regular tropical rainfalls. Australia is also a land of contradictions in another sense. The majority of our population is found in a few large cities scattered around our coastline, generating all the challenges associated with contemporary urban living. But our rural agricultural sector is a significant driver of the economy and a substantial proportion of our exports come from the land.
Water is therefore of paramount importance to our economy.
In fact, we are a world leader in water management. We are world leaders on this front because we have realised that we cannot afford to ignore the warning signs which our ecology is giving us about use of our environmental capital. We have to live off the interest generated by Australia's substantial natural endowments. We need to manage carefully the resources which are required for the welfare of future generations. Over the last decade we have recognised that major contributors to our national wealth, such as the Murray-Darling Basin, have been experiencing severe ecological stress.