
Australia is the driest inhabited continent on Earth, with a mean annual rainfall of 457mm between 1900 and 2020. However, it has a strong record of water management and investment, with a collaborative approach through the National Water Grid Fund (NWGF). Australia has more than 500 major surface-water storages, several thousand small storages, and more than 2 million farm dams. The total accessible storage capacity is about 81,000 GL, equivalent to a national per-person surface-water storage capacity of about 3.25 ML, which is relatively high compared to many other countries. Australia's water resources include rivers, dams, and reservoirs, and the continent is divided into drainage divisions, water regions, and river basins. While Australia faces challenges due to variable rainfall, increasing water demand, and climate change, it has implemented various measures to secure its water future, including investing in desalination plants and improving water efficiency.
| Characteristics | Values |
|---|---|
| Water supply and sanitation management | The responsibility of each state government |
| Water usage | One of the highest consumers of water per capita |
| Water sources | Surface water, groundwater, seawater desalination, recycled water |
| Water storage | More than 500 major surface-water storages, several thousand small storages, and more than 2 million farm dams |
| Total accessible storage capacity | About 81,000 GL (as of 2018) |
| Total water runoff (2004-05) | 243 billion cubic meters (BCM) |
| Total groundwater recharge (2004-05) | 49 BCM |
| Total inflow to water resources (2004-05) | 292 BCM |
| Average annual rainfall | 457 mm (1900-2020); 347 mm (2019-2020) |
| Water market turnover (2019-2020) | $7 billion |
| Water-saving measures | Water-efficient products, rainwater harvesting, greywater reuse, Water Wise Measures |
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What You'll Learn

Australia's water management and investment
Australia is the driest inhabited continent on Earth, with a mean annual rainfall of 457 millimetres (mm) between 1900 and 2020. However, its rainfall is highly variable, both across the country and from year to year. This, coupled with the increasing demand for water caused by population and economic growth, presents unique challenges for the management of water resources in Australia.
The Australian government has a strong record of water management and investment, supported by a national and collaborative approach through the National Water Grid Fund (NWGF). The NWGF works with states and territory governments to ensure clean and reliable water for all Australians. The fund supports responsible investment decisions that promote nature-positive outcomes, such as supporting biodiversity, restoring natural ecosystems, and developing sustainable construction.
To meet the increasing demand for water, Australia is investing in technology and turning to desalination plants, which can produce up to 674 gigalitres of additional freshwater. As of 2021, desalination plants have been commissioned in Perth, Sydney, the Gold Coast, and Melbourne, with another planned for Port Augusta. However, desalination is costly and controversial due to its high energy consumption.
Other water management strategies include the use of reclaimed water, where treated wastewater is reused for non-potable purposes such as irrigation. Perth is actively replenishing its aquifers by pumping 10% of its treated wastewater into shallow aquifers, a process known as Indirect Potable Reuse, which could be crucial for future-proofing urban water supplies.
Additionally, Australia is promoting water efficiency and conservation practices. Many homes are adopting water-saving features, and more than a quarter of Australian households collect and store rainwater for domestic use, contributing significantly to residential water supplies. Cities are also implementing voluntary or permanent measures to restrict water usage for non-essential purposes, such as garden hosepipes and irrigation systems.
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Water supply challenges
Australia is the driest inhabited continent on Earth, with a mean annual rainfall of 457 millimetres (mm) between 1900 and 2020. However, its highly variable climate means that some years are significantly drier than others. For example, in 2019-20, Australia's total annual rainfall was just 347mm, well below the mean value. This was the second consecutive year of very low rainfall, and the country has experienced its driest 24-month period on record.
The variability of Australia's climate is double that of most other countries, with frequent droughts and floods. This poses a challenge for water supply, as does the increasing demand for water caused by population and economic growth. Australia's limited and unpredictable rainfall is being exacerbated by climate change, with the continent one degree warmer than a hundred years ago and receiving significantly less rain.
To meet the demand for water, Australia has traditionally relied on rain-fed dams and reservoirs. However, with climate change intensifying, the country faces increasingly acute long-term water shortages with lower rainfall, rivers drying up, and dam water levels falling. This has forced an increased reliance on groundwater, with Australia's aquifers being drained at unsustainable rates.
To address these challenges, Australia is turning to technology, with all the mainland states investing in large desalination plants. Each plant can produce up to 674 gigalitres of additional freshwater to cushion city-dwellers against growth and drought. However, desalination is costly and controversial, using a lot of energy.
Other solutions include improving water efficiency in homes and agriculture, with many Australian homes already collecting and storing rainwater for domestic use. This contributes around 177 billion liters to residential water supplies. Australia is also getting better at using less water, with recycled water use increasing in most urban centres in 2018.
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Climate change impact
Australia is the driest inhabited continent on Earth, and among the world's highest consumers of water per capita. As the impact of climate change intensifies, Australia faces acute long-term water shortages with lower rainfall, rivers drying up, and dam water levels falling.
Climate change is causing complex changes to Australia's hydrology and water resources. This is due to a complex interplay of shifts in temperature, rainfall, evaporation, vegetation dynamics, soil moisture, and rainfall-runoff partitioning. Australia's limited and unpredictable rainfall is being exacerbated by climate change, with the continent one degree warmer than a hundred years ago and receiving significantly less rain. In 2018, every state except Tasmania and Western Australia received less than average rainfall, while Queensland experienced persistent high temperatures that contributed to record rates of evaporation.
Climate change is also increasing the severity of floods and droughts, which impacts the chemical composition, total organic carbon, and microbial quality of drinking water. The 2019-2020 bushfire season in southeastern Australia was described as "the worst in history," with immediate impacts on water treatment plants that lost the ability to provide reliable and safe drinking water.
Agriculture, one of Australia's largest industries, relies heavily on long-term access to freshwater. Without it, the industry would decline, affecting the economy, jobs, and food production. Climate change is reducing the amount of surface water available and increasing temperatures and evaporation rates, which will impact water quality and availability for agricultural use.
To address these challenges, Australia is investing in large-scale desalination plants and improving water efficiency through technology and water-saving practices. The country is also developing regional water strategies and exploring sustainable construction methods to minimize negative environmental impacts.
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Water efficiency and conservation
Australia is the driest inhabited continent on Earth, with an average annual rainfall of 457mm between 1900 and 2020. However, this rainfall is unevenly distributed, with some inland towns surviving on less than 200mm of rain per year. Australia's water supply is vulnerable to droughts, and only a small proportion of its water comes from groundwater.
To address these challenges, Australia has a strong record of water management and investment, supported by a national and collaborative approach through the National Water Grid Fund (NWGF). The NWGF works with states and territory governments to ensure clean and reliable water for all Australians.
- Water infrastructure development: Australia has invested in effective water infrastructure, including reservoirs, dams, and farm dams. These structures ensure a reliable water supply and support ecosystems, agriculture, and communities.
- Desalination plants: With declining rainfall affecting reservoirs, Australia is increasingly turning to seawater desalination. Desalination plants are being built in major cities like Sydney, Melbourne, and Adelaide to provide additional freshwater sources and cushion against growth and drought.
- Reclaimed water and wastewater reuse: The use of reclaimed water and the reuse of treated wastewater for non-potable purposes, such as irrigation and industrial processes, is common in Australia. Perth, for example, is actively replenishing its aquifers by pumping treated wastewater into shallow aquifers for natural filtration and storage.
- Water-efficient products and practices: Many products in Australia are rated for water efficiency, and homes are adopting water-saving features. This includes water-efficient showerheads and dishwashers, and integrated water management systems that treat and reuse greywater.
- Rainwater harvesting: More than a quarter of Australian homes collect and store rainwater for domestic use, contributing significantly to residential water supplies.
- Water restrictions and conservation measures: During droughts and water shortages, Australia implements restrictions on non-essential water usage, such as prohibiting sprinklers and car washing. Even during less urgent times, residents are encouraged to conserve water through voluntary Water Wise Measures.
- Improving water security and resilience: The NWGF funds projects to increase water security and build long-term resilience to droughts and water scarcity. This includes supporting biodiversity, restoring natural ecosystems, and promoting sustainable construction practices.
- Collaboration with Aboriginal communities: The Australian government works closely with Aboriginal people and organizations in catchment areas to implement projects that respect traditional ecological knowledge and involve local communities in water management.
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Desalination and wastewater reuse
Australia is the driest inhabited continent on Earth, and among the world's highest consumers of water per capita. As the impact of climate change intensifies, the country faces increasingly acute long-term water shortages with lower rainfall, rivers drying up, and dam water levels falling.
Wastewater reuse, also known as water recycling, is another important strategy in Australia's water management. This involves treating and reusing wastewater from various sources, such as sinks and showers, and industrial processes. Treated wastewater can be used for non-potable purposes, such as irrigation of green spaces, golf courses, and agricultural crops, reducing the demand for freshwater in these sectors. Some cities, like Perth, are even exploring the possibility of using treated wastewater as a source of drinking water, known as Indirect Potable Reuse.
In addition to these large-scale projects, Australia is also promoting water-saving practices at the household level. Many homes are adopting water-saving features, such as flow-regulating showerheads and water-efficient dishwashers. Rainwater harvesting is also common, with over a quarter of Australian homes collecting and storing rainwater for domestic use, significantly contributing to residential water supplies.
By investing in desalination infrastructure, promoting wastewater reuse, and encouraging water-saving practices, Australia is working towards securing its water future and ensuring a sustainable and resilient water supply for its population.
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Frequently asked questions
Australia is the driest inhabited continent on Earth, with a mean annual rainfall of 457 millimetres (mm) (1900-2020). Its highly variable climate, coupled with increasing water demand due to population and economic growth, presents unique challenges for water management. Climate change exacerbates these issues, with the continent receiving significantly less rainfall.
Australia's highly variable rainfall impacts the availability of water resources. The country's streamflow is the third most variable in the world, and many parts of Australia rely on surface water stored in reservoirs as their main water source. This makes water supply vulnerable to droughts.
Australia has a strong record of water management and investment, supported by a national and collaborative approach through initiatives like the National Water Grid Fund (NWGF). The country has more than 500 major surface-water storages, several thousand small storages, and over 2 million farm dams.
Australia is investing in large desalination plants, each producing up to 674 gigalitres of freshwater. Additionally, cities like Perth are exploring the use of treated wastewater as tap water, known as Indirect Potable Reuse. Other initiatives include rainwater harvesting, water-saving household features, and water-efficient practices in agriculture.
Australia's variable rainfall has led to the construction of various dams and reservoirs to ensure a consistent water supply. The Murray-Darling river system, in particular, supplies 55% of the country's total water usage and is vital for agriculture. Reservoirs help regulate streamflow and provide reliable water storage during periods of drought.











































