The National Water Initiative (NWI) is Australia’s blueprint for national water reform.

The NWI builds on the previous Council of Australian Governments (COAG) framework for water reform agreed to in 1994. The overall objective of the NWI is to achieve a nationally compatible market, regulatory and planning based system of managing surface and groundwater resources for rural and urban use that optimises economic, social and environmental outcomes.

The NWI agreement includes objectives, outcomes and agreed actions to be undertaken by governments across eight inter-related elements of water management including:

• Water markets and trading ;
• Water access entitlements and planning framework;
• Best practice water pricing;
• Integrated management of water for environmental and other public benefit outcomes;
• Water resource accounting;
• Urban water reform;
• Community partnerships and adjustment; and
• Knowledge and capacity building.

There are also a number of national working groups, that Western Australia is participating in, that are progressing NWI outcomes. Just under half of the NWI’s actions are the responsibility of the Commonwealth Government or to be progressed through jurisdictions working together. This reflects not just the emphasis in the NWI but on greater national compatibility in the way Australia measures, plans for, prices, and trades water. It also represents a greater level of cooperation between governments to achieve this end. The National Water Commission (NWC) is responsible for driving water reforms and managing the implementation of the NWI across Australia.

Western Australia’s NWI Implementation Plan is being coordinated by the Department of Water’s Water Reform Branch. A draft of Western Australia’s NWI Implementation Plan is scheduled for release early in 2007.