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Hugh Schuitemaker, Murray Pioneer

The announcement of a “worst-case” water allocation scenario for SA River Murray irrigators – the first in five years – is set to compound the region’s economic struggles, according to a senior irrigation figure, and a Riverland politician.

The Department of Environment and Water (DEW) last week announced South Australian River Murray irrigators were projected to receive minimum opening water allocations of 62 per cent for the 2026-27 water year.

Central Irrigation Trust chief executive officer Greg McCarron said pressure on water availability would add to economic difficulties being experienced by many Riverland irrigators.

“Against the backdrop of mounting pressures on many irrigators — including volatile commodity prices and rising input costs — the announcement of water restrictions following reduced system inflows over the past 18 months is deeply concerning,” Mr McCarron said.

“For many, this decision compounds an already difficult operating environment.

“However, it is important to remember that the announced allocation of 62 per cent for the opening of the 2026-27 water year represents a worstcase scenario, and increased inflows should see allocation increases. Current Bureau of Meteorology rainfall forecasts for the next three to four months mean that a short-term reprieve is less certain.

“Many irrigators will now be considering their water requirements for the year ahead and the options available to manage risk. However, the financial realities facing many businesses mean there may be less capacity to take advantage of those options, further heightening stress across the sector.”

Chaffey MP Tim Whetstone said the announcement would push Riverland irrigators toward the temporary water market.

“This is a reality check on how volatile the water market can be, particularly at a time of vulnerability for many of our irrigators,” Mr Whetstone said.

“Lower allocations are bound to have an impact on prices, so it’s an economic hit to a region that has a high dependency on water to remain viable.

“It’s more important than ever that irrigators are aware of temporary water market, with short-term and long-term leases being an option available to them.

“I would urge anyone contemplating selling their water to look locally before submitting a tender to the Federal Government.”

The last time SA Murray River allocations had been projected to open at less than 100 per cent, was 2021-22, when the projected opening allocation was announced at 82 per cent.

DEW water delivery manager Renee Thompson said management of the Murray River system was vital to ensuring the sustainability of water resources.

“Our water resources are carefully managed to provide reliable water delivery for industry and regional communities alongside environmental and system requirements,” Ms Thompson said.

“In mid-April each year, (DEW) makes a projected opening allocation announcement for the following water year based on worst-case water availability information provided by the MDBA. This is to ensure irrigators are able to plan for the upcoming water year.

“This announcement is not the final determination for water allocations in the 2026-27 water year and we will be closely monitoring Basin conditions over the coming months.”

As the projected minimum opening allocation for 2026-27 is greater than 50 per cent, irrigators will be ineligible to carryover any unused allocation volumes from 2025-26 into 2026-27.

Mr McCarron said maintaining an understanding of allocation processes and updates was key to local irrigators making beneficial business decisions.

“CIT encourages our members to stay informed, reach out if they have questions about the likely restrictions or to discuss their individual circumstances,” Mr McCarron said.

“Support and clear information will be critical as we navigate what is shaping up to be another challenging year for the Riverland community.”

Monthly updates to the volume of water available for allocation will be provided by DEW.

This article appeared in Murray Pioneer, 22 April 2026.

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