Since the last Murray-Darling Basin Ministerial Council meeting, Ministers noted the progress made on Basin Plan implementation, including progress towards Bridging the Gap and the 450 gigalitres (GL) of additional environmental water recovery targets. The Murray-Darling Basin Authority's (MDBA) 2025 Basin Plan Evaluation report and the Sustainable Rivers Audit showed the Plan was delivering significant environmental outcomes and improved system-wide conditions.
Delivery of the Basin Plan
Ministers were provided an update on the Commonwealth's next stage of the Voluntary Water Purchase Program, noting that more than 99 per cent of the current Bridging the Gap water recovery target was achieved. For the 450 GL water for the environment target, the Commonwealth is on track to recover about 400 GL by the end of 2026 through efficiency measures and continuing voluntary water purchase (buybacks). The Sustainable Communities Program has been established to assist communities impacted by water purchase. The Sustainable Communities Program is rolling out in South Australia and New South Wales. Victoria has agreed to work with the Commonwealth on accepting the available Sustainable Communities Program funding. Funding remains available to Queensland to support communities affected by water purchase.
Ministers noted the third review of the Water for the Environment Special Account (WESA) had concluded that:
- current water recovery programs had the potential to recover all or most of the 450GL/year target by 31 December 2027, but additional funding would be needed to meet the target in full
- the total funding available from WESA was insufficient to deliver the full constraints relaxation outcome.
Two previous independent reports, published in 2020 and 2021, found that progress towards the 450 GL target was slow and delivery was not achievable under the original timeframes and recovery options. Different perspectives were expressed around the ways to achieve the target.
Ministers noted New South Wales will continue engagement with First Nations peoples on its 4 outstanding Water Resource Plans (WRP) in early 2026 to have the plans accredited as soon as possible. WRPs in all other Basin jurisdictions have been accredited and are being implemented.
Ministers for New South Wales, Victoria and South Australia agreed to work together to maximise environmental outcomes from existing Sustainable Diversion Limit Adjustment Mechanism (SDLAM) projects. Ministers discussed the timeframes for delivery of SDLAM projects.
Ministers noted the MDBA's current estimated shortfall range of 255GL to 355GL in the SDLAM and discussed the need for a strategic approach to further recovery of environmental water and the response to projects not completed by 31 December 2026. Ministers also noted the timeframes and approach the MDBA was taking to the SDLAM reconciliation and preparing advice to the Commonwealth Minister by 31 December 2026.
Ministers agreed to employ best endeavours to deliver SDLAM measures and to meet modelling deadlines to best inform the reconciliation and requested the MDBA to do the same.
Setting the future direction of the Basin
Ministers heard about the MDBA's progress in preparing for the 2026 Basin Plan Review, including the public consultation period that will commence in February 2026. The update included early findings about the health of the Basin's environment and what it means for Basin communities. These insights, along with the National Climate Risk Assessment and the recently released 2025 Murray - Darling Basin Outlook: Summary Report show that the future of the Basin will be hotter, drier and with more climate variability.
Ministers were notified of the key findings of the 2025 Basin Plan Evaluation, the Sustainable Rivers Audit, the Sustainable Yields Report and the SDLAM assurance report and the implications for the 2026 Basin Plan Review. The reports highlighted that the environmental condition in many areas of the Basin was better now than it would have been without the Plan. Ministers acknowledged some challenges, including managing water resources for improved water quality outcomes will remain a focus and require collaborative efforts between governments. Ministers discussed the continued need to improve river connectivity, critical human water needs and water quality Basin-wide to support regional communities and agricultural production in the Basin.
Ministers noted that the MDBA's priorities for the Basin Plan Review include recommending ways to simplify the Basin Plan, strengthening adaptive management, better incorporating responses to climate change risks, and support water quality outcomes, improving First Nations outcomes and understanding the needs of industry and the lived experience of communities through extensive consultation. Ministers also discussed the approach to the Water Act Review that is required to be undertaken by 2027 and noted that the reviews would inform the future direction for the Basin and required broad stakeholder engagement. Ministers agreed high level guiding principles:
- Principle 1: Deliver positive environmental, economic, social and cultural outcomes in a changing climate.
- Principle 2: Implementation based on partnerships, across government, industry and communities.
- Principle 3: Implementation that is transparent, simple, has integrity and provides certainty.
Improving First Nations water interests
Ministers also heard about the work underway by the Commonwealth and Basin states to improve water outcomes for First Nations Peoples in the Murray-Darling Basin, including progress with delivering the $100 million Aboriginal Water Entitlements Program. As at 1 December 2025, the Australian Government program has made 35 purchases across the north and south of the Basin contributing 15.68 GL to First Nations ownership. The program buys water entitlements from willing sellers, transferring ownership to support First Nations Peoples' cultural, social, economic, spiritual, and environmental values. All water purchased through the program stays in the consumptive pool. The program will continue to purchase water throughout 2025-26.
Ministers noted the work underway to co-design First Nations water holding arrangements in the Murray-Darling Basin. A project team, including governance and community experts, is leading the consultation process which continues into February 2026. The second phase of engagement is now open to get First Nations views on the design of the holding arrangements.
Ministers also heard that the Commonwealth's $20 million Cultural Flows Planning for Cultural Economies Grant Program attracted strong numbers of applications from Murray-Darling Basin First Nations. The grants can be used by First Nations in the Basin to get ready for water ownership and management.
Running the rivers
Ministers supported the MDBA to progress a review of the Menindee Lakes focusing on the threats posed by poor water quality, declining inflows and impeded fish passage on the values of the Lakes. The work done to date will be used to inform the next steps in identifying options to address the issues and will include extensive stakeholder engagement.
Ministers noted the work underway to move from annual to multi-year budget and workplan cycles for Joint Programs including River Murray operations and assets. Ministers also noted the emergency works on the Koondrook-Perricoota inlet regulator which they had approved out-of-session. Ministers agreed to an additional package of works to start in 2025-26 targeted at reducing asset risk across a range of sites. Ministers were updated on work underway to amend the Murray-Darling Basin Agreement. The proposed amendments are mostly administrative in nature, streamlining approval processes and removing duplication. Ministers agreed to review the amendments out of session.
Closing comment
Ministers acknowledged progress in preparing for the 2026 Basin Plan Review and thanked the Basin Community Committee, the Commonwealth Environmental Water Holder, and the Inspector General of Water Compliance for their updates.
The Murray-Darling Basin Ministerial Council will meet again in 2026.
