Sustainable Management of Water Resources
in the Mount Lofty Ranges
Final Project Report
August 2014
Table of Contents
Table of Contents ................................................................................................................... 2
1 Background......................................................................................................................... 3
1.1 Purpose of this Report ................................................................................................. 3
1.2 Overview of the Mount Lofty Ranges PWRA ........................................................... 3
1.3 Background of the Sustainable ................................................................................ 4
1.4 Objectives .................................................................................................................... 4
2 Project Conduct .................................................................................................................. 8
2.1 Project Management ................................................................................................. 8
2.2 Risk Management ....................................................................................................... 9
3 Project Benefits.................................................................................................................. 10
3.1 Project Outcomes/Deliverables .............................................................................. 10
4 Financial Information ........................................................................................................ 11
Western Mount Lofty Ranges vineyard irrigated by surface water
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Background
1.1. Purpose of this Report
In May 2006 the Australian Water Commission and the Minister for Environment and
Conservation entered into a funding agreement for the purpose of establishing a
program to manage the Mount Lofty Ranges water resources. The program sought to
achieve sustainable water use, improved water quality and the protection of water
supply catchments in the Mount Lofty Ranges. The Sustainable Management of
Water Resources in the Mount Lofty Ranges (MLR) Project commenced upon signing
of the agreement and concluded in December 2010. This report has been prepared
to acquit performance of the State in accordance with Items 5.7. – 5.10. of the
funding agreement.
1.2. Overview of the Mount Lofty Ranges PWRA
The water resources of the Mount Lofty Ranges (MLR) are socially, economically and
ecologically important to South Australians. Approximately 20,000 dams and 11,000
bores with ten water supply reservoirs are distributed throughout the region over an
area of 5,300 km2. Approximately 75% of the State’s population relies on the Mount
Lofty Ranges for its water. In an average year, 60% of water requirements are
supplied from the MLR and in exceptional years, more than 90%.
The region supports a population of 101,000 in 160 towns and 25,000 hectares of
irrigated agriculture that generates $720 million annually. Population growth in the
region was 10.6% between 1996 and 2001. Rivers, wetlands and swamps in the region
are of high conservation significance with a number listed under the Ramsar
Convention and Environment Protection and Biodiversity Conservation Act 1999 given
the biological communities they support, extent of historical loss and continuing
threats.
At the time of implementing the project water resources in the region were under
pressure and demands for agriculture, industry and domestic supply were increasing.
Primary producers, industry and domestic water users required secure access to water
to plan for the future and provisions needed to be made for environmental flows for
rivers, streams and wetlands. The need to better manage these resources were
previously highlighted in a number of reports including the State of the Environment
Report 2003, Integrated Natural Resource Management Plan for the Mount Lofty
Ranges and Greater Adelaide Region, the National Land and Water Audit, 2000 and
the recommendations of Thinker in Residence, Professor Peter Cullen.
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1.3. Background of the Project
This project was implemented over a ten-year period with two distinct stages of
implementation, each requiring significant community engagement. The initial stage
involved the implementation of a moratorium on new water extraction (Notice of
Prohibition) and consultation regarding the Government’s intention to prescribe the
region’s water resources (Notice of Intent to Prescribe). The second stage of the
Project involved the development and implementation of Water Allocation Plans
under the Natural Resources Management Act 2004, assessment of existing water use
through a land and water use survey and the management and administration of
water licences and metering.
1.4. Objectives
The main objective of the Project was to establish an integrated program for the
management of the MLR water resources to achieve sustainable water use, improved
water quality and protection of water supply catchments.
The specific objectives of the Project were to:
 achieve an informed community supporting and involved in the development of
sustainable natural resource management measures, including the Project;
 deliver monitoring, identification and remediation of pollution through strong
partnerships with local government and the community;
 obtain robust technical information that supports sound decision making and
policy development for the sustainable water resource management and
allocation; and
 achieve sustainable management of the future development and use of the
Mount Lofty Ranges’ water resources within the framework of the Natural
Resources Management Act 2004 to balance economic, social and environmental
outcomes, including by securing access to regional water supplies for agricultural,
industrial and recreational water users. The benefits of doing so include reduced
barriers to investigate and development in the Mount Lofty region.
Under the Natural Resources Management Act 2004 (the ‘Act’) the Natural Resources
Management Boards (NRM) have an obligation to undertake an active role with
respect to the management of natural resources within their region. This involved
promoting public awareness and understanding of the importance of integrated and
sustainable natural resources management within its region, undertake or support
educational initiatives with respect to natural resources management, and to provide
mechanisms to increase the capacity of people to implement programs or to take
other steps to improve the management of natural resources.
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
achieve an informed community supporting and involved in the development of
sustainable natural resource management measures, including the Project.
A Communication Strategy was originally prepared with the aim to effectively
communicate progress on the new water management practices in the MLR. It was
designed to keep affected stakeholders up-to-date and informed of why water in the
region needed to be managed, who was and was not affected, how different water
users would be affected and to prevent confusion and mis-information amongst
stakeholders whilst maintaining consistent messaging across previous communication
media.
A wide range of communication methods were utilised including media liaison, close
association with NRM Boards, the Department website, printed information sheets and
fliers, public meetings, stakeholder briefings and paid notices/advertisements.
The objectives of the Communication Strategy were to:
 Provide feedback to the community and industry about the consultation
process;
 Provide regular updates to the community and industry;
 Provide timely announcements and information about key milestones such as
the decision to prescribe;
 Ensure that the community and key stakeholders clearly understand the
proposed water resources management system and their rights and
responsibilities;
 Ensure that the community and key stakeholders clearly understand the
process of implementing the water resources management process and how
they can be involved in influencing this process;
 Allay any fears and correct any misunderstandings about the prescription
process; and
 Gain community support for developing and implementing new water
management arrangements.
In development of the WAPs for EMLR and WMLR the South Australian Murray Darling
Basin (SAMDB) Natural Resources Management (NRM) Board and Adelaide Mount
Lofty Ranges (AMLR) NRM Board also undertook extensive community consultation
including:



consultation during the preparation of a concept statement;
community meetings during the preparation of the draft Plan and on the
completed draft Plan; and
the opportunity for the community to provide written submissions.
EMLR
The draft WAP was released for community consultation for a period of 14 weeks
between 4 May and 5 August 2011 and included five public meetings held across the
region in May 2011. A total of 66 written submissions were received.
The
SAMDB
NRM
Board
published
an
Achievement
Report
(http://www.naturalresources.sa.gov.au/files/70ef44f0-a91e-41fe-8a55-a1b300fecbc0/emlrwap-achievement-rep.pdf ) on this public consultation describing the public
Mount Lofty Ranges Final Project Report (August 2014)
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consultation undertaken, providing copies of the publicity materials, setting out all
submissions received and the Board’s responses to the issues raised. Section 80(2) of
the Act requires that, in considering the draft Plan, you must have regard to these
submissions and to the reports of the people who conducted the public meetings.
The adoption package submitted to the Minister by the SAMDB NRM Board
recommended a number of amendments in response to the public consultation.
Following an internal review by Departmental staff, a small number of further
amendments were proposed in consultation with the AMLR Regional staff.
WMLR
The draft WAP was released for community consultation for a period of 15 weeks
between 13 October 2010 and 10 January 2011. Ten public meetings were held in
the region. Approximately 400 people attended the meetings and 79 submissions
were lodged.
Following the conclusion of the consultation period the Board prepared a report on
the consultation, collated all comments and amended the draft Plan where
necessary.
Strong community support in the MLR fuelled support for a draft regulation to extend
the licence application period for existing water users. On the 31 January 2013 the
Natural Resources Management (Eastern and Western Mount Lofty Ranges –
Prescribed Water Resources) (Exemption of Certain Existing Users) Regulation 2012,
(the Regulation) came into operation, allowing existing water users a final opportunity
to apply for a water licence. The deadline for submission of licence applications
closed on 31 July 2013.
As a result of the Communication Strategy, a number of Frequently Asked Question
(FAQ’s) fact sheets were developed, along with an on-line Water Response Form
allowing existing and secondary users to accept or dispute proposed licence
packages, as well as an on-line Meter Notification Form.
 deliver monitoring, identification and remediation of pollution through strong
partnerships with local government and the community.
Both WAP’s address environmental water quality requirements as water quality plays
an important role in determining the nature and condition of water-dependant
ecosystems, and is linked to the flow regime in many complex ways. Increased
periods of zero flow, reduced flow rates and less frequent flushing fresh flows can
allow pollutants to build up in pools and increase in concentration through
evaporation.
Through engagement with the community and partnership
arrangements with the South Australian Environment Protection Authority (EPA) water
quality issues of particular local significance were identified that included dissolved
oxygen, salinity, temperature, suspended solids, nutrients, and toxins such as
pesticides, herbicides and heavy metals. Determining the environmental water
requirements for the Prescribed Water Resource Areas (PWRA), the WAPs aim to
ensure that water quality is managed within acceptable tolerance levels for
environmental and consumptive purposes.
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As part of water quality activities in the region, the EPA coordinates The Healthy
Waters Project in partnership with the AMLR NRM Board and DEWNR. An aim of the
project is the identification of environmental values and water quality objectives for
water resources specifically in the AMLR PWRA region. This project was important
during the MLR Project and the objectives identified will eventually be incorporated
into the environment Protection (Water Quality) Policy 2003 and will help inform future
water quality management decisions in prescribed areas.
 obtain robust technical information that supports sound decision making and
policy development for the sustainable water resource management and
allocation.
The funding deed sets out specific Project Activities. The following activities were
undertaken:
 Conduct technical studies to assess the surface water and groundwater
resource capacity, development impacts and constraints at a sub-catchment
scale; and
 Conduct technical studies to determine the water needs of dependent
ecosystems and to provide advice on how to provide for these needs and
protect the important aquatic and riparian ecosystems.
One of the objectives of the technical studies was to develop a methodology to
determine the reasonable requirements of existing users and to develop a database
and geographic information system (GIS) tool to effectively store this information.
The Department for Water (DFW) contracted GHD Australia (GHD) to identify a
suitable methodology for determining reasonable water requirements of existing users
in the WMLR PWRA and the EMLR PWRA.
Data from ecological monitoring at a number of sites was used to develop a model
which predicted the responses of important species to various water regimes in both
the Eastern and Western Mount Lofty Ranges regions. Hydrological models were then
used to test whether particular policy settings delivered the water regime required to
achieve acceptable ecological outcomes. As a result, there are defined linkages
between the ecology, hydrology and policy in the WAP’s.
The management strategy for surface and watercourse water was based on not
capturing flows when flow was below a threshold flow rate. This contributes to the
environmental flow regime by reducing the period of time that watercourses are dry
and increases the period of time that they flow, which has a large ecological benefit
for a small reduction in the rate at which water is captured. This allows a larger
consumptive use limit while still achieving appropriate environmental targets.
The scientific methodology used to calculate the consumptive use limits, for surface
water and watercourse water, used the assumption that all licensed dams, plus stock
and domestic dams with a capacity of five megalitres or greater, will provide low
flows. Further scientific work was carried out that shows that it is possible to achieve
similar levels of environmental benefit by requiring fewer dams to provide low flows
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and using a strategic approach to selecting which dams are required to provide low
flows.
Throughout the course of these projects the Department has contracted subject
matter experts to calculate the theoretical crop water requirements of all
‘recognised’ crops in EMLR and WMLR.
 achieve sustainable management of the future development and use of the Mount
Lofty Ranges’ water resources within the framework of the Natural Resources
Management Act 2004 to balance economic, social and environmental outcomes,
including by securing access to regional water supplies for agricultural, industrial
and recreational water users. The benefits of doing so include reduced barriers to
investigate and development in the Mount Lofty region.
The Eastern and Western Mount Lofty Ranges PWRA were established in order to
manage water use in these areas as the resource was deemed at risk. The WMLR
WAP was adopted on 17 September 2013, and the EMLR WAP was adopted on the
17 December 2013 by the Honourable Ian Hunter MLC, Minister for Sustainability,
Environment and Conservation under the Natural Resources Management Act 2004.
Community, industry and the environment in both the Eastern and Western Mount
Lofty Ranges regions will benefit from the adoption of the water allocation plans as
they provide water security for the future. The plans outline how water will be
managed to protect the environmental, social and economic well-being of the
Prescribed Areas for future generations. They are guided by the Natural Resources
Management Act 2004, which provides the legal framework for sustainably
managing South Australia’s water resources for the benefit of all water users.
The plans are based on scientific investigations and considers the sustainable, longterm balance between all users – the general community, industry and our natural
environment. The aims are to manage water use by ensuring that new allocations
are within sustainable limits and minimises the risks of new use on existing users.
2. Project Conduct
2.1. Project Management
From August 2003 until December 2010 the MLR Project was run as a discrete program
under the direction of a Program Manager. During this period the program was
located close to its customer base of water users in the Department’s Offices in Stirling
in the Mount Lofty Ranges.
During this period the Program was focussed on the identification of existing water
users and determination of their reasonable requirements in accordance with s164N
of the Natural Resources Management Act 2004 (the Act). Another key focus of the
Program during this period was the development of the draft EMLR and WMLR Water
Allocation Plans in conjunction with the SAMDB and AMLR Natural Resources
Management Boards.
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As part as the Departments water reform agenda the MLR Project team came under
the management of the AMLR water licensing region in December 2010. Under these
new management arrangements the MLR Project Team continued the process of
determining the water requirements of existing water users and preparation for issuing
existing user water licences and the development of the draft EMLR and WMLR Water
Allocation Plans.
2.2. Risk Management
Project Risk Management
The project used the Department’s Risk Management Framework, based on the Risk
Management Standard (AS/NZS 4360:1999). A risk analysis utilising the procedures laid
out in the Department’s Risk Management Framework was undertaken upon
commencement of the project and regularly reviewed throughout the project life
cycle.
Full risk management assessment, treatment and control was completed and
documented.
Risks to the Resource
A number of potentially significant gaps were identified between the rights of existing
users and the environmental water requirements for a number of management zones
in both the EMLR and WMLR PWRA. Estimates of use by existing or prospective users
lead to provisions that fell short of the environmental water requirements that had
been determined by scientific investigations supporting the sustainable extraction
limits.
These potential gaps created a significant source of risk to water resources in the
EMLR and WMLR PWRAs. Risk assessments, undertaken in accordance with
Department’s Risk Management Framework, provided a systematic and transparent
basis on which to identify, assess, evaluate and treat these risks.
The objectives of the risk assessment are summarised as follows:
 Assess and evaluate risks caused by allocation of water to existing users;
 Facilitate sustainable management of the resource;
 Identify water management zones of extreme risk that would meet the criteria
for temporary restrictions;
 Assign risk levels to other water management zones to inform policy responses;
 Prioritise monitoring and compliance responses; and
 Provide transparency with respect to treatment decisions, including trade-offs
made at the water user and management zone scale.
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3. Project Benefits
3.1. Project Outcomes/Deliverables
The adoption by the Honourable Ian Hunter MLC, Minister for Sustainability,
Environment and Conservation of both the Water Allocation Plans for the Eastern and
Western Mount Lofty Ranges Prescribed Water Resources Areas implemented the
formal water allocation arrangements for these regions.
The purpose of a water allocation plan is to provide for the sustainable taking and use
of prescribed water resources to meet present and future water needs of the region.
A water allocation plan guides the granting of licences and allocations to take and
use prescribed water resources, for allocations made once existing user entitlements
have been considered. It also guides transfers of licences and allocations, ongoing
management of water allocations, and the granting of permits for relevant water
affecting activities.
Both WAPs set out specific objectives to encourage efficient use of water resources in
a sustainable manner; maintain the quantity and quality of water resources and
water-dependant ecosystems; minimise the impact of the taking and use of water on
prescribed resources, other resources, other water users and the environment.
Existing user water licences for the WMLR have now been issued and the ongoing
administration of these licences have been integrated into the Departments Adelaide
Mount Lofty Ranges water licensing region as ongoing business. WMLR water licences
are administered in accordance with the water allocation principles set out in the
Water Allocation Plan for the WMLR which was adopted by the Minister for
Sustainability, Environment & Conservation on the 17 September 2013
As water licenses are progressively issued to existing water users in the EMLR the
licences are being progressively integrated into the Departments South Australian
Murray Darling Basin licensing region as ongoing business. EMLR water licences are
administered in accordance with the water allocation principles set out in the Water
Allocation Plan for the EMLR which was adopted by the Minister for Sustainability,
Environment & Conservation on the 17 December 2013.
The MLR Project will be considered to be effectively closed by the 30 June 2014 which
is the date that water licences are expected to be issued to the majority of existing
water users in the EMLR. Beyond this point the EMLR & WMLR will be administered
within the relevant water licensing regions as ongoing water licensing business.
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4. Financial Information
In accordance with Item 10.2.C. of the Funding Deed, audited financial statements of
income and expenditure have been completed and submitted to the
Commonwealth for the years 2005 – 2012.
High level income and expenditure information is included in the following table.
Budgeted Contributions (GST exclusive) ($’000)
Approved Australian Government Contribution
$13,900
Approved State Government and Other Contribution
$16,173
Total Approved Contributions
$30,073
ACTUAL CONTRIBUTIONS ($‘000)
Actual Australian Government Contribution
$13,900
Actual State Government and Other Contribution
$16,200
Total Actual Contributions
$30,100
PROJECT EXPENDITURE ($’000)
Total Project Expenditure*
$30,159
*At the completion of the project there was a net deficit of $59,000 which has been met by
available State funds.
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