2021-22 Annual progress report on water strategy implementation

The government will improve how the water sector engages with communities about water management and make it much easier for water users and the broader community to engage with and understand water management and how decisions are made.

We will:

• use plain English in water management communications and documents
• improve coordination between water sector agencies on engagement activities to reduce overlap, confusion and consultation fatigue
• test community interest in each region of NSW to be involved in oversight of the implementation of each of the 12 regional water strategies
• build knowledge, seek feedback and explore new ways to increase confidence among water users about water management decisions
• work with First Nations/Aboriginal People and peak organisations to design appropriate and inclusive approaches for engagement and consultation with Aboriginal People.

Deliverable	Status	Update
Provide plain English explanations with water access licenses to provide clarity for water users about mandatory conditions.		The department is giving plain English explanations of mandatory conditions for water access licences and water supply work approvals when any conditions change or updates are notified to water users. This work will continue, with a focus on continuous improvement.
Host a monthly public webinar about upcoming water engagement events.		The Water Engagement Roundup began in April 2021. This monthly webinar provides updates on current consultation and engagement about important water policy and programs from the department. The webinars focus on a topic of interest to stakeholders.
Publish the findings of an independent review of the effectiveness of our stakeholder and community engagement activities every 2 years.		KPMG was engaged in November 2021 to independently review the department's Water Stakeholder and Community Engagement Policy and to recommend a future recurring audit program. The department published the findings of the audit on its website in May 2022.
Publish multimedia content that makes water information available at a time and in a format that suits customers and the community.		The department has progressively published a series of videos on online platforms that provides a range of information about water in NSW, including availability, allocations, drought and water quality. These videos are free, non-technical resources that users can access at any time. Publication of content will be an ongoing action.
Develop a strategy to implement changes to the licensing and approvals system with a focus on accountability and performance, driven by customer experience.		In June 2022, the NSW Government announced funding for a 2-year program to deliver customer-focused water licensing and approval improvements. The program will reduce application and process times for customers, and give more seamless online navigation. Staged improvements will be tested with targeted stakeholders from 2023 onwards to ensure delivery of an improved customer experience.
Publicly report on progress of all commitments made in response to recommendations from inquiries, reviews and audits.		The Department of Planning and Environment has developed a Commitments Library that summarises all commitments made by the NSW Government that the Department of Planning and Environment – Water is responsible for implementing in response to recommendations from independent inquiries, reviews and audits. The Commitments Library will be published on the department’s Water website in 2022.

The government will continue to improve the quality and range of water-related information made publicly available and ensure it is easy to find, search and navigate.

We will:

• provide easier access to information about how water is managed and how decisions are made, particularly decisions around future water availability
• improve data management, accessibility and transparency and take an open-by-default approach to information and data
• improve NSW’s public water registers to increase transparency (while protecting privacy).

The government will continue to improve and expand our modelling capabilities and make more data, models and model outputs openly available.

We will:

• develop best practice guidelines/Codes of Practice to ensure that all models are widely applicable, and that modelling is of the highest quality
• maximise the benefits from existing fit-for-purpose models by investigating how we can link these different models and expand their application
• identify opportunities to increase transparency in model methods and to make publicly available models and data that have been peer reviewed and quality assured.

Deliverable	Status	Update
Through the open data framework, publish models and model outputs, with an initial focus on rainfall and runoff models.		Work has progressed on drafting best-practice guidelines for modelling. Completion of the guidelines is scheduled for December 2022. Work has also progressed on making climate and flow data publicly available. A pilot project has released this data for north coast catchments. A project design is in place to extend this to more complex models and larger geographic areas. Full implementation of this statewide rollout is likely to take 2 to 3 years.

The government will continue to build the capacity of the NRAR to fulfil its role as a fair but firm regulator of water management and give the community confidence that water plans are implemented and rules are enforced.

We will:

• undertake more extensive and effective promotion of the regulatory approach and actions of the NRAR
• clarify water user obligations and communicate them clearly, so that water sharing plans across the state more effectively underpin a modern and enforceable licensing system
• increase the NRAR’s use of and access to technology, such as remote sensors, satellite imagery and drones, enabling the NRAR to better direct its investigations and resources to address the instances of highest harm to water users and the environment

Deliverable	Status	Update
Release 20 planned compliance program final reports to industry and the public.		This action has been revised. NRAR has reviewed the way that it targets regulatory effort. As part of this review, NRAR has developed and published Regulatory Priorities which has resulted in a reorganised compliance effort. NRAR is now targeting 4 annual priority areas and will publish annual reports to ensure transparency and accountability.
Publish information to make sure that water users understand their obligations and are aware of the consequences of non- compliance and the compliance approach of the regulator.		NRAR continues to publish a range of education material to facilitate both general compliance and in support of the Regulatory Priority areas. NRAR also issues media releases and updates a public register when enforcement sanctions are issued for non-compliance.
Undertake 50 formal stakeholder events that inform and promote NRAR’s regulatory work in priority areas.		The COVID-19 pandemic created significant disruptions to all planned travel and face-to-face meetings and events. Despite this, between January and June 2022, NRAR attended 20 events and Customer Advisory Group meetings, and is on track to meet the target of 50 events per calendar year.
Engage regulated entities in 5,000 site inspections through the Routine Monitoring Project.		Routine monitoring, fieldwork and site visits have been significantly affected by COVID-19 travel restrictions. NRAR is on track to meet this target by end of the 2022 calendar year. As of the end of April, 6,020 works had been inspected on 3,205 properties.
Hold a minimum of 3 meetings per year between the NRAR Executive/Board and major stakeholders.		The COVID-19 pandemic created significant disruptions to all planned travel and face-to-face meetings. This has meant that the NRAR Board could not attend many stakeholder events. It is expected that this target will be delayed only slightly, with regional NRAR Board trips planned for June to July 2022.
Invest in data, intelligence, analytics and systems to focus our regulatory effort towards greatest compliance outcomes.		NRAR has invested significant resources to establish the following teams: Spatial analysis unit: specialising in aerial and satellite data analysis to support and direct investigations work. Intelligence unit: analysing data provided by the public and collected in the field to establish patterns of conduct and inform the Regulatory Priorities. ICT unit: planning and delivering an ICT strategy to better support all aspects of NRARs work.

The government will finalise floodplain harvesting reforms by issuing floodplain harvesting licences and amending draft water sharing and water resource plans to manage take within legal limits.

The government will review and consult with the community about how domestic and stock basic landholder rights are regulated.

We will:

• review the current situation to better understand how much water take is occurring under domestic and stock basic landholder rights and whether this is creating risks in particular areas or circumstances
• consult with the community on options for improving understanding of domestic and stock basic landholder rights, and whether rules are required to better manage that form of water take and enhance the regulator’s (NRAR) ability to enforce compliance.

The government will ensure that the vast majority of non-urban water take, including floodplain harvesting, in NSW is measured by accurate, auditable and tamper-proof meters.

Key milestones for delivering this action are:

Non-urban water metering rules:

• 1 December 2020 – compliance date for pumps greater than 500 mm
• 1 December 2021 – compliance date for all other works in northern inland region
• 1 December 2022 – compliance date for all other works in southern inland region
• 1 December 2023 – compliance date for all other works in coastal regions.

Floodplain harvesting measurement rules:

• January to May 2022 – compliance date for large storages (1,000 ML or greater)
• 1 July 2022 – compliance date for all other storages.

The government will strengthen the role of First Nations/Aboriginal People in water planning, management, governance and decision-making by:

• working with First Nations peak organisations, Aboriginal water interest groups and First Nations communities to determine how we will work together on critical state-wide water strategies, policies, programs and issues
• adopting more appropriate and inclusive approaches to engagement and consultation with Aboriginal people, including in accordance with each First Nation’s cultural protocols
• ensuring existing water governance and decision-making processes provide for First Nations representation, including through identified First Nations roles on relevant boards and committees and supporting roles for Aboriginal community-controlled organisations in water governance
• partnering with First Nations in water planning and management consistent with the principle of self-determination, and building the capacity of First Nations to develop water governance and decision-making processes that empower Traditional Owners
• ensuring water related plans, policies and programs deliver social, spiritual, cultural, economic and environmental outcomes for First Nations/Aboriginal People.

We will also improve accountability and transparency in water governance and management, consistent with actions under Priority 1.

The government will partner with First Nations/Aboriginal People to co-design a state-wide Aboriginal water strategy that will identify a program of measures to deliver on First Nations’ water rights and interests in water management. Delivering the Aboriginal Water Strategy will involve:

• reviewing and identifying required amendments to the water management legislative framework to enable Aboriginal rights, interests and ownership of water
• revising existing, and developing new, water policy and planning approaches
• designing programs to deliver outcomes
• securing sustainable funding and resourcing
• building the organisational capacity of First Nations/Aboriginal People to enable self determination and sustained participation in projects relevant to water interests.

The department will partner with First Nations/Aboriginal groups to co-design:

• the principles for developing the Aboriginal Water Strategy
• the process and framework for developing the Aboriginal Water Strategy
• the engagement model needed to consult with peak groups and First Nations/Aboriginal People, including the involvement of Native Title claimants and holders.

The government will enhance First Nations/Aboriginal People’s access to water for cultural and economic purposes by:

• recognising and protecting Native Title rights to water in water sharing plans
• working with First Nations to better understand cultural values and flow requirements to inform water planning and sharing decisions
• increasing water available for cultural and spiritual purposes
• increasing water entitlements in First Nations/Aboriginal ownership
• where there are synergies, using water allocated for environmental and consumptive purposes to deliver Aboriginal outcomes and benefits
• improving and enabling access to Country to maintain healthy waterways and engage in cultural practices.

The government  will work closely with First Nations/Aboriginal People to improve shared water knowledge and enable Aboriginal-led programs to implement projects informed by Aboriginal knowledge and science. We will also take action to make sure that Aboriginal people have a better understanding of water management frameworks and regulation in NSW.

We will do this by:

• establishing culturally safe mechanisms for 2-way sharing of water knowledge, where appropriate, supported by appropriate mechanisms for data sovereignty that ensure the protection of First Nations/ Aboriginal People’s intellectual property rights and interests
• delivering programs to improve cultural competency in the water sector
• delivering programs to improve knowledge of water management policies, rules and frameworks in Aboriginal communities.

We will also partner with First Nations/Aboriginal People to develop programs and initiatives that will:

• increase the participation and employment of Aboriginal people ‘on the ground’ in maintaining the health of land, rivers and wetlands
• provide opportunities at regional and local levels for Aboriginal people to contribute traditional ecological knowledge to the management of land and water resources.

The government will work closely with Aboriginal communities to ensure that:

• regional and metropolitan water strategies appropriately consider First Nations/Aboriginal People’s cultural heritage in assessing infrastructure, policy and planning options in each region
• meaningful engagement occurs with First Nations/Aboriginal People upstream and downstream of new infrastructure proposals
• cultural heritage implications of new water policies are considered.

We will also partner with First Nations/Aboriginal People to explore programs and initiatives that will support Aboriginal communities to identify and map water-dependent cultural sites and record cultural water practices, where culturally appropriate.

The government will work to:

• consider the objectives and targets outlined in the NSW Long Term Water Plans to guide water planning, and to develop equivalent products for coastal regions of NSW, including protecting and enhancing our nationally listed wetlands and internationally recognised sites/species
• improve understanding of the impact of climate change on environmental water management
• engage with stakeholders, including First Nations/Aboriginal People in the implementation and review of NSW Long Term Water Plans.

The regional water strategies will identify specific priorities and target programs towards improving land use and land management practices in catchments where these are major contributors to a decline in river and catchment health. We will also examine barriers to land management practices which improve river health.

The NSW Government will deliver three statewide, catchment scale initiatives to address key threats to native fish populations.

We will:

• implement the NSW Fish Passage Strategy
• address cold water pollution through interventions such as temperature monitoring, new operating protocols and cold water pollution mitigation technology at priority dams where cold water impacts are severe
• invest in fish-friendly water extraction technology at priority sites, guided by the regional water strategies.

The government will:

• implement monitoring, evaluation, and reporting frameworks to track the effectiveness of plans and policies and inform future management actions
• update the River Condition Index across NSW in 2021 after detailed assessments are completed in coastal water sources to provide a baseline for addressing progress of the NSW Water Strategy and the regional and metropolitan water strategies.

The government will:

• continue to monitor and review the NSW Water Quality Objectives across NSW to ensure they reflect contemporary community and environmental values and uses
• define clear roles, accountabilities and frameworks for monitoring, assessing and addressing water quality risks across the state
• ensure the community can access information about water quality.

Deliverable	Status	Update
Implement Water Quality Management Plans as required under the Murray–Darling Basin Plan.		In line with commitments under the Murray–Darling Basin Plan, NSW has completed the water quality management plan report and submitted the report to the Murray–Darling Basin Authority (MDBA). The report will be published on the MDBA’s website.
Implement the Marine Estate Management Strategy sub- actions to: review and refine governance arrangements for the management of diffuse water source pollution review and (where necessary) update the NSW Water Quality objectives in coastal catchments to ensure they reflect contemporary community environmental values and uses.		In consultation with other agencies, a draft governance framework for diffuse source water pollution has been developed in consultation with relevant government agencies. Proposed revisions to the NSW Water Quality Objectives for coastal catchments have been prepared. Comprehensive consultation with state agencies, local governments, industry and stakeholders is required and this will take additional time.
Continue to support the preparation and implementation of Coastal Management Programs (CMPs) by councils to achieve the objectives of the Coastal Management Act 2016 that may include actions to maintain and improve water quality and estuary health, supported by monitoring and evaluation.		To date, the Minister for Local Government has certified 4 Coastal Management Programs (CMPs) and these are being implemented. Approximately 50 CMPs are being prepared by local coastal councils with technical and financial support from the Department of Planning and Environment. Information and an interactive map on the progress of CMPs is available online.
Prepare a water quality roadmap of roles and responsibilities for water quality management and monitoring across NSW, and consider options to address gaps, remove duplication or uncertainty and improve water quality governance arrangements.		This action has not yet commenced and will be delivered as part of NSW Water Strategy implementation in 2022–2023.
Develop standard, state-wide arrangements for the monitoring of extreme events in order to enhance response actions and reduce risks.		The department has drafted a Water Quality Incident Management Plan – Hypoxic Events paper. The operational provisions in the draft management plan were enabled during the recent (late 2021 to April 2022) hypoxic blackwater events that occurred in the northern Basin. The draft Management Plan will be updated and reviewed following these events, and published.
Monitor and report on water quality.		WaterNSW continues to undertake regular water quality monitoring.

The government will develop and implement an NSW Groundwater Strategy and Action Plan to improve groundwater management across NSW. This strategy will address the challenges and opportunities around sustainable groundwater management and aim to secure and protect groundwater for thriving environments, communities and industries.

We will:

• develop principles and a clear statement about how NSW will increase connectivity across regions of the Murray–Darling Basin
• explore options to improve connectivity between catchments
• develop decision-making support tools and frameworks to better inform water sharing decisions across connected water resources, particularly in the Murray–Darling Basin
• implement the actions in the NSW Government’s response to the Independent Panel Assessment of the Management of the 2020 Northern Basin First Flush Event.

The government will continue to improve our understanding of climate, including variability and climate change, and ensure that it is applied and accessible to inform decisions across the water sector.

We will:

• include new climate data and risk modelling methods in the NSW Common Planning Assumptions
• provide access to climate risk information for water users, councils and local water utilities, and the community to support towns and users adapt to likely reduced water reliability
• incorporate the new climate data into NSW water models, initially for regional and metropolitan water strategies and modelling of new infrastructure projects
• partner with key stakeholders and industry to develop communities of practice for climate risk modelling, and to promote improved risk management and adaptation
• advocate for use of a single climate risk methodology across the Murray–Darling Basin.

Deliverable	Status	Update
Incorporate new climate data into the development of: 12 Regional water strategies Greater Sydney Water Strategy and Lower Hunter Water Security Plan.		New climate data and modelling that improves our understanding of past climate conditions and plausible climate futures has been prepared statewide. Eleven of 12 draft regional water strategies prepared to date have incorporated new climate data, along with the draft Greater Sydney Water Strategy. The draft Murray and Murrumbidgee regional water strategies however did not include the outputs from hydrological modelling as it is still under development. New climate data will be incorporated into the Greater Hunter Regional Water Strategy as part of the next review, and implementation of the Lower Hunter Water Security Plan.
Pilot delivery of climate risk data in a format that meets the needs of local water utilities.		Data has been provided to a number of pilot areas for use in developing water security measures to inform Integrated Water Cycle Management Plans. Work will continue in 2022–2023 to make the data for councils available statewide via a data portal.
Determine a methodology and progressively incorporate climate risk data into water sharing plan and environmental water management decision making.		A work program has been developed for this action. Delivery, however,   is expected to take longer than initially anticipated and will progress over several years.
Establish a NSW Community of Practice (CoP) for water practitioners to share methods, knowledge and resources to improve environmental, economic and social outcomes.		The Office of the Chief Scientist and Engineer has convened a NSW Government Climate Community of Practice. Working groups to further target water modelling and climate change will be established.
Participate in national and Basin wide communities of practice and share learnings from these groups to align and improve decision making.		The Department of Planning and Environment has continued to participate in various national and Basin-wide communities of practice and interjurisdictional working groups.

The government will review water allocation frameworks and water sharing plan provisions in response to new extremes in water availability. This will include:

• exploring ‘critical human needs’ and mechanisms to safeguard water for human needs during extreme events, including development of a position on alternative water supplies where water security for towns cannot be guaranteed in extreme events
• exploring risk management approaches for more adaptive water allocation and accounting frameworks
• improving transparency and clarity for all water users about decision making for water allocations.

The government will work with communities across NSW to improve their preparedness for and resilience to drought.

We will:

• develop and maintain the NSW Future Ready Regions Strategy, which will outline the Government’s priority actions over the next few years to prepare for and respond to future droughts. The plan will outline key lessons from the recent drought periods in NSW and confirm the impacts drought can have on local communities, small businesses and industry
• ensure that the regional and metropolitan water strategies identify options to diversify water sources and water operations to be more resilient for drought and emergency response
• consider options for improving the management of shared water resources during times of drought and work with other Basin governments to promote improvements
• document our lessons learnt from managing water during the recent drought and ensure these lessons inform future decision making
• investigate options for a more consistent approach to water restrictions across NSW, including the development of common principles.

The government will better integrate strategic land use planning with water management frameworks and outcomes. We will take steps to:

• establish processes to support communication and early engagement to better inform land use, agriculture and industry investment decisions based on a clear understanding of water availability and constraints, and water allocation risk over the immediate and longer term
• develop new planning policies, if required, to integrate land use and water cycle management decisions
• identify opportunities for the planning system to support water resource health and resilience in a changing climate; for example, through strategic recognition of critical groundwater resources in coastal areas and mitigate impacts from urban development
• improve access to information about water availability to support development
• examine opportunities for information on high value water-dependent ecosystems and cultural values to be considered in land use planning decisions.

The government will increase business and investor confidence in regional NSW by:

• developing Special Activation Precincts and Regional Job Precincts
• developing and implementing the regional water strategies to identify the optimal mix of management and infrastructure investment to support jobs and economic growth in regional NSW.

The government will look for opportunities to invest in R&D and new technologies to lift productivity and improve the economic return on water in NSW by:

• better capturing and quantifying the contribution of water to economic outcomes at the state and regional level, including the economic value of natural systems, in order to better understand and measure water productivity
• improving water use efficiency and productivity in agriculture, food processing and manufacturing, resources and other industries
• supporting the cost effective development of rainfall independent sources of water supply for key industry sectors, such as desalination and recycling
• supporting the development and improvement of irrigation systems to maximise the productive use of water
• improving understanding of how agricultural land use changes the availability of water (for example, the change to permanent pastures and zero till cropping increases the capture of rainfall, which – in turn –reduces runoff)
• continuing to roll-out the Farms for the Future pilots to provide enabling infrastructure that supports agribusiness productivity and improved water use management and efficiency, including on-farm connectivity and other ag tech solutions
• improving the capacity of NSW primary industries to better plan for and respond to climate change by reviewing existing impact and adaptation research and current activities for each industry, and developing a climate vulnerability modelling approach to capture climate exposure risk and sensitivity in key sectors.

The government will take the following actions to improve the operation of the NSW water market.

We will:

• improve the transparency of trading activities and access to information about these activities
• review the need for a regulatory framework covering water brokers and intermediaries to improve confidence in how the market is regulated.

We will:

• identify infrastructure and operational management options for each region in NSW to improve reliability for all water users and the environment through the development of 12 regional water strategies and two metropolitan water strategies for Greater Sydney and the Lower Hunter
• monitor and report on the implementation of all 14 water strategies.

The government will further investigate issues of water availability and consult with the community through the regional water strategies for the Murrumbidgee and Murray valleys.

The government will partner with councils, water utilities, research organisations, the private sector and communities to pilot innovative urban water management that improves resource efficiency and recovery, and contributes to working towards a net zero emissions future.

The government will partner with water utilities, research organisations, the private sector and communities to pilot new technologies and sources of water; for example, onsite household grey water reuse technologies.

The government will collaborate with government, research and industry partners to harness technology for measuring, monitoring and reporting to drive the sector and system outcomes. Including:

• universal metering and telemetry for non-urban water take
• comprehensive and reviewed/enhanced hydrometric network, switching from manual read to telemetry
• interoperability of licence and accounting frameworks
• increased capability in satellite imagery observations
• integration of artificial intelligence and machine learning
• contribute to a digital twin (model) for Sydney
• open access to models, spatial data and derivative products
• effective state-wide water data and systems governance.

The government will:

• develop an NSW Water and Wastewater training strategy with local water utilities to understand skills shortages and the types of initiatives required to address these
• invest in our future water workforce, including through education, training, cadet and graduate programs
• promote the important societal contribution that water management makes through creating jobs with purpose and meaning.

The new Town Water Risk Reduction Program (Action 6.3) will play a leading role in helping councils and local water utilities to improve skills and capability and access the expertise of the wider water sector.