Abstract

The classic poem about Australia was penned by Dorothea McKellar in the early years following Australia’s birth as a nation and in the shadows of the infamous 1895–1902 Federation Drought. A century later, Australia again found itself in the grip of a drought that tested the resolve of Australia’s Federation in several capital cities and across the iconic Murray-Darling Basin. In both the Federation and the recent 1996–2009 “Millennium” drought, severe water shortages have catalyzed reform of Australia’s water sharing arrangements. The chapter explores the evolution of water management in Australia, including the intergovernmental governance arrangements in the Murray-Darling Basin, the 1994 Council of Australian Government water reforms, the 2004 National Water Initiative and the establishment of the Commonwealth Water Act. In conclusion, current progress and challenges for future water reform in Australia are discussed.

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