The Federal Government’s announcement that it will consider purchasing water entitlements in the northern Murray-Darling Basin has, unsurprisingly, provoked differing responses. The announcement from Minister Watt and the responses from Nationals Senator and Shadow Minister for Water, Ross Cadell, from the Shadow Minister for Water (NSW), Steph Cooke, and from the Nature Conservation Council of NSW point to the different issues and views on this contentious topic.

Exploring options to restore the rivers of the Northern Murray-Darling Basin: Watt

The Hon. Murray Watt, Minister for the Environment and Water, Media Release, 27 February 2026

The Australian Government is considering opportunities to purchase water entitlements from willing sellers in the northern Murray–Darling Basin as part its commitment to recover 450GL of water for the environment.

Today’s release of an updated Restoring Our Rivers Trading Strategy includes a voluntary Expression of Interest (EOI) process that will gauge entitlement holders’ interest in selling held water in the northern Basin.

Voluntary offers to sell water entitlements through the EOI will help inform when and where the Government may look to purchase water in the northern Basin in the future.

The EOI follows advice from the Murray?Darling Basin Authority (MDBA) highlighting the environmental benefits of extending water recovery efforts into the northern Basin.

The Basin Plan Evaluation released by the MDBA in July 2025 demonstrated the critical role that environmental water played in supporting river flows during the 2017-2019 ‘Tinderbox Drought’.

Additional water for the environment in the northern Basin can be used to support river connectivity flows during dry times and reduce the frequency or duration of cease-to-flow periods where rivers stop running.

Advice on the social and economic impacts associated with buying northern Basin water will be considered as part of any future Government purchasing decision, as required by the Water Act 2007.

Acknowledging the impact environmental water recovery can have on communities, the Australian Government is providing $300 million to support communities to build capacity and diversify their economies under the Sustainable Communities Program.

The Australian Government is also providing funding to Basin states to deliver local water efficiency projects that can contribute water towards the 450GL target under the Resilient Rivers Water Infrastructure Program.

Minister for the Environment and Water Murray Watt said exploring water recovery opportunities in the northern Basin was critical to the Government’s commitment to meet the 450GL target by the end of 2027.

“The previous Coalition Government let communities down, let industry down, and put the long-term health of the Basin at risk by failing to take meaningful action to recover water for the environment.”

“We have acted decisively and have recovered almost half of environmental water required to meet the 450GL target under the current Basin Plan.

“So far, water recovery efforts have been focused on the southern Basin.

“Expert advice from the MDBA has highlighted the benefits of environmental water recovery in the northern Basin.

“Unlike the southern Basin, flows in northern Basin rivers are more naturally variable and rely on floods to reconnect them after extended dry periods.

“Recovering environmental water in the north will mean more water is available to help restore river connectivity and get water into wetlands, waterholes and floodplains when it is most needed.

“That is particularly critical for iconic northern Basin wetlands like the Ramsar-listed Macquarie Marshes in north-western NSW, an eco-system that was listed as endangered last month, based on recommendations from Australia’s Threatened Species Scientific Committee.

“We will look at water entitlement offers made through the EOI process to see how that water could help improve river connectivity or ecological outcomes in a particular catchment.

“Those assessments will inform whether we proceed to a tender to purchase water in those catchments.”

For more information, see www.dcceew.gov.au/water/policy/publications/restoring-our-rivers-trading-strategy.

Labor’s Northern Basin buybacks will smash Australian households: Cadell

The Hon. Ross Cadell, Nationals Senator for New South Wales and Shadow Minister for Water, Media Release, 27 February 2026

The Albanese Labor Government has confirmed it will begin exploring water buybacks in the Northern Murray-Darling Basin, expanding its search beyond the Southern Basin in a desperate attempt to meet its disastrous 450 gigalitre target.

The move follows the Government’s own Third Review of Water for the Environment Special Account, which revealed an additional $1.3 billion is needed to recover the remaining water – nearly double the original funding allocation – while recovery is still projected to fall short of the legislated target by 2027.

Nationals Senator for New South Wales and Shadow Minister for Water, Ross Cadell, said Labor’s latest move would drive up water prices and hit household grocery bills across the country.

“Every time Labor buys water, it makes farming more expensive, and that cost flows straight through to Australian families at the checkout,” Senator Cadell said.

“At a time when Australians are already struggling with the cost of living, Labor is deliberately pushing up the price of food and fibre.”

Senator Cadell said Basin communities had already endured years of economic damage from water recovery programs.

“Regional towns are shrinking, businesses are closing, and families are leaving, all because governments keep taking more water out of production,” he said.

“The environment already holds significant water, and all evidence now points past it being a volume issue. What communities need now is investment in infrastructure, efficiency measures and other practical solutions, not more buybacks driven by political ideology.”

Senator Cadell said expanding buybacks into the Northern Basin showed the Government was panicking about its inability to meet the 450GL target.

“This is not policy that puts Australian interests first. Enough is enough, Labor needs to put the politics aside and serve for the benefit of the people.

Minns Government must prevent new Northern Basin buybacks: Cooke

The Hon. Steph Cooke, Shadow Minister for Water (NSW), Media Release, 27 February 2026

The Minns Labor Government must put NSW first and prevent any further Commonwealth water buybacks in the Northern Basin, following the Federal Government’s announcement that it is seeking to purchase additional entitlements.

The updated Restoring Rivers Trading Strategy confirms the Commonwealth will open a voluntary Expression of Interest process targeting entitlement holders in the northern Murray-Darling Basin.

However, recovery targets in the Northern Basin NSW Zone have already been exceeded by 36.1 gigalitres.

As at 31 December 2025, Basin communities had delivered 2,062 GL of the 2,075 GL Bridging the Gap target, in addition to 221.2 GL toward the 450 GL of additional environmental water.

Shadow Minister for Water Steph Cooke said NSW irrigators and regional communities have already carried a disproportionate share of the recovery task.

“NSW has contributed more environmental water than any other state,” Ms Cooke said.

“Targets in the Northern Basin NSW Zone have already been met and exceeded.

“It makes no sense to strip more productive water out of communities that have already done the heavy lifting.

“The Commonwealth should be looking to jurisdictions that have delivered significantly less recovery to date, rather than returning once again to Northern NSW.”

Ms Cooke said the Premier has repeatedly stated in Parliament that his government opposes further water buybacks in NSW.

“This is the Premier’s moment to stand by his word,” Ms Cooke said.

“If he truly opposes further buybacks, he must formally communicate that position to the Commonwealth and make it clear that NSW communities should not be targeted again.

“The Premier cannot continue to speak against buybacks in Sydney while leaving the door open to them in Canberra.”

While the Commonwealth describes the process as voluntary, Ms Cooke said cumulative buybacks have long-term structural impacts on regional economies.

“Every gigalitre removed from production affects local jobs, farm investment, processing capacity and community viability,” Ms Cooke said.

“These impacts do not disappear simply because a sale is voluntary.

“NSW communities deserve clarity, leadership and a Government willing to put their interests first.”

Water buybacks a drop in the bucket without NSW rule reform to reconnect the Darling River:
Nature Conservation Council of NSW 

Nature Conservations Council of NSW (NCC), Media Release, 2 March 2026

The Nature Conservation Council of NSW (NCC), New South Wales’s leading environmental advocacy organisation, has today responded to the Australian Government’s announcement that they are exploring water entitlement purchases in the northern Murray–Darling Basin. While further water recovery in the northern Basin is needed and welcome, NCC warns that only reform to NSW’s water sharing rules will deliver the promised river health outcomes that communities and ecosystems so urgently need. 

Purchasing water licences from willing sellers as announced by Minister for the Environment and Water, Murray Watt, on 27 February 2026 will not, on its own, restore the Barwon-Darling River. Commonwealth purchased water entitlements do not carry the legal conditions and protections required to ensure the basic flow requirements of the Barwon-Darling River. 

“The only way to fix the Barwon-Darling River is to reconnect its NSW tributaries — the Macquarie-Wambuul, the Namoi, the Gwydir and the NSW Border Rivers,” said Jacqui Mumford, CEO of NCC.   

“This requires significant improvements to the rules in NSW Water Sharing Plans to create a protected category of environmental flows known as Planned Environmental Water. Planned Environmental Water carries the legal conditions and priority status to ensure it reaches its destination” Mumford said.

NCC points to the July 2024 Connectivity Expert Panel Final Report as the definitive guide to what must be done. The Panel was convened by the NSW Minister for Water and delivered a comprehensive blueprint for restoring longitudinal connectivity from the northern tributaries through the Barwon-Darling River down to Menindee Lakes. Its findings were stark: 

“The evidence that reduced connectivity is having severe impacts on ecosystem health and downstream communities is undeniable,” the Panel wrote to the Minister.  

Quotes attributable Jacqui Mumford, CEO of Nature Conservation Council NSW: 

“The Connectivity Expert Panel was unequivocal: the environment has continually borne the risk of government inaction.”  

“Commonwealth water recovery is just one piece of the puzzle when it comes to fixing the Barwon-Darling. The first thing that needs to be done is enshrining rules that automatically create the base flows that allow the rivers of the northern to connect to the Barwon-Darling.” 

“We call on the NSW Government to urgently to implement the Connectivity Expert Panel’s recommendations in full.” 

“Public money spent on water buybacks will be wasted unless the policy failures that broke the river are fixed first. The health of the Barwon-Darling Rivers and the communities that depend on them cannot wait any longer.”