Water buyback cancelled as Murray-Darling Basic sees overhaul of old ways

Policing of water allowances across the basin will also be placed in new hands after Water Minister Keith Pitt announced $38 million would go towards installing a new inspector-general of a water compliance office.

After 12 years of water buybacks through the basin plan, key stakeholders say management is a step closer to finding the long-debated balance between environmental sustainability and productivity for farmers.

The initial buyback scheme saw the government 'buy back' a farmer's water entitlements in order to top up the quantity of water flowing through the system for the environment.

Murrumbidgee Irrigation CEO Brett Jones welcomed the news, and said future success depended on a commitment to infrastructure upgrades.

"Buyback is a blunt instrument that hurts communities and any further recovery should only be taken through water savings projects and infrastructure upgrades," he said.

"Investment in infrastructure programs supports communities and will enable us to continue to be as efficient as possible and improve our water management."

Mr Jones said that MI had always, and will continue to, support the "triple bottom line outcomes" of the Murray-Darling Basin Plan.

"We all want healthy rivers, healthy communities and a continuing capacity to produce food and fibre for the nation," he said.

"The best way of achieving this is by implementing the Plan and getting on with the SDL projects that will provide over 600GL of benefit to the environment."

Murray-Darling Basic Authority staff will be combined with the Interim Inspector-General of Murray-Darling Basin office to join forces under the new statutory office.

Nericon irrigator Frank Battistel said the change came just in time.

"If they kept taking all the water they planned to from farmers, you might have to wonder where your next feed would come from," he said.

Mr Battistel said the success of the new regulations rested in the promise to focus on water efficiency.

"The environmental water they do have needs to be managed more efficiently, and the latest technology allows for that, so that they set the best examples for farmers who then can follow in their footsteps to efficiently manage their own water," he said.

"At this stage, a lot of water is wasted still and there are options available on how to improve overall water efficiency across the board that now needs to be focused on."

As the debate continues between the environment and farming productivity, Mr Battistel said the change would foster a good balance.

"No one wants to lose the environment, but we need that balance between wanting to look at green trees and wanting green food as well," he said.

Murray-Darling Basic Authority chairman Sir Angus Houston said the funding pledged to support Basin communities would help toward future-proofing the plan.

"We recognise the need to update the 20-year-old hydrology models used by the MDBA, state governments and science community to understand the Basin's rivers and water ways," he said.

"The proposed investment by the government is a necessary first step.

"It's important that our scientists and other water managers and researchers have the most up-to-date systems available to do their job."

So-called "new water" needed to be an additional focus of the region, according to Mr Battistel.

"Everyone is fighting for what's available now, but you never hear of making new water, damming new rivers and finding new channels and diversions to areas you can irrigate," he said.

"We have all the knowledge in the world now, but it seems we're too frightened to do anything with it.

"We will always need more water, so let's find out how to create it."

NSW Irrigators' Council interim CEO Claire Miller said the decision was a long overdue but welcome political reality check.

"Today is the first time in a long time that decision-makers have shown themselves willing to listen to those findings and work with communities on innovative solutions that work for both people and the environment," she said.

"More than 20 per cent of water once used for farming is now dedicated to the environment - That's in addition to the undiverted water that is more than 70 per cent of river flows."