The Water Amendment (Restoring Our Rivers) Act 2023 marks a turning point for Australia's most important river system. Delivering on an election promise, the legislation delivers comprehensive reforms to protect the Murray-Darling Basin for future generations.

The reforms provide more time and options for delivering environmental water targets, with deadlines extended to December 2027. They unlock $1.3 billion for water recovery while ensuring communities receive transition support. The removal of the 1,500 gigalitre cap on water purchases, combined with new market protections, creates a more flexible and transparent system.

To ensure accountability, the legislation strengthens the role of the Inspector-General of Water Compliance and introduces new market conduct rules, including protections against insider trading. An independent review in 2025 is underway to assess progress, particularly on the critical 450 gigalitre environmental water target.

The reforms reflect extensive consultation with states, territories, farmers, irrigators, scientists, environmentalists and First Nations groups - establishing a clear pathway to secure the Basin's future while supporting the communities that depend on it.

The reforms deliver real change through specific measures:

• Extends the deadline to recover 450 gigalitres of environmental water to December 2027, while providing time until December 2026 for states to complete infrastructure projects

• Removes the 1,500 gigalitre cap on water purchases and unlocks $1.3 billion from the Water for the Environment Special Account for recovery activities

• Creates a mandatory code for water market traders with new penalties for market manipulation and insider trading

• Strengthens the Inspector-General of Water Compliance's powers to audit water use and enforce sustainable diversion limits

• Requires a third independent review in 2025 to assess progress on environmental water targets

UPDATE (MAR 2025):

The Albanese Government has announced recovery of 286GL towards the 450GL environmental water target, compared to just 2GL delivered in the previous decade. The first round of voluntary water purchase tenders has closed with contracts being evaluated for up to 70GL, while a second tender for up to 100GL opened in February. Additionally, over $94 million in funding has been allocated for South Australian Basin communities to support infrastructure improvements.

[1] https://minister.dcceew.gov.au/plibersek/speeches/speech-introducing-restoring-our-rivers-bill

[2] https://www.dcceew.gov.au/sites/default/files/documents/water-amendment-restoring-our-rivers-2023-faqs.pdf

[3] https://www.dcceew.gov.au/sites/default/files/documents/restoring-our-rivers-bill-factsheet.pdf