Northern Basin irrigators will be banned from floodplain capturing unless Menindee Lakes reaches 250 gigalitres, under a NSW Government decision that has ignited fresh tensions as the 2026 review of the Murray–Darling Basin Plan gets under way.
The change lifts the storage trigger from 195 gigalitres to 250 gigalitres, effectively narrowing upstream access based on a downstream rule. Federal Nationals say the announcement came without consultation with irrigators and without any form of compensation for those affected, describing it as another blow for regional communities already grappling with uncertainty around water policy.
Nationals Senator Ross Cadell said the lack of consultation had become a hallmark of recent water decision-making.
“Water policy in this country needs to be clear and transparent,” Senator Cadell said.
“Instead, Labor has used the stroke of a pen on Macquarie Street to again muddy the waters, leaving regional communities with no trust in their elected officials.”
“Our regional communities have lost faith in Government to listen, care, and respond.”
Shadow Assistant Minister for Agriculture and Member for Parkes Jamie Chaffey described the decision as “bureaucracy gone mad”.
“It is a clear case of a department making decisions without the NSW Minister for Water taking any responsibility, and without any proof this will make an ounce of difference to environmental outcomes or fish deaths,” Mr Chaffey said.
“On paper, this might not look like much, but on the land, it’s a whole world of difference. This is yet another knife in the heart for regional communities. Our farmers are already tackling enormous challenges to provide the country with food and fibre, and they are at the heart of wealth generation for our regional communities and the nation.”
Murray Darling Basin Plan under review
Chaffey said the timing was particularly concerning given both the federal Menindee review and the broader Basin Plan review are currently under way, with submissions open until 1 May 2026.
The regulatory change lands at the same time as the Murray–Darling Basin Authority undertakes its first major review of the Basin Plan since its implementation in 2012.
Federal Environment and Water Minister Murray Watt said the task ahead was balancing ecological health with economic resilience.
“A healthy Murray–Darling Basin means resilient ecosystems, stronger industries, thriving communities, and opportunities for future generations,” Senator Watt said.
“Our challenge in the Basin is to balance competing pressures: reducing stress on major ecological systems, supporting Basin economies and communities, and adapting to a drying climate with increased scarcity and competition for water.”
In accordance with the Water Act 2007, the Authority must review the Basin Plan before the end of 2026. The release of the 2026 Basin Plan Review Discussion Paper on 5 February formally kicked off that process.
MDBA Chief Executive Andrew McConville said the Discussion Paper examined progress to date and set out issues and challenges for the decade ahead.
“Today’s release of the Discussion Paper kicks off the Basin Plan Review,” Mr McConville said.
“Through the Discussion Paper, the Authority has explored progress that has been made to date and considered some of the issues and challenges for the Basin as we look forward over the next decade.”
He said the intention was to inform communities that depend on a healthy working Basin and encourage them to make submissions.
“The Basin Plan has delivered real benefits, and we are starting to see improvements in some of the Basin’s most important rivers and wetlands.
“But the evidence is also clear that climate change, ageing infrastructure, disconnected floodplains, declining native fish, and poor water quality mean we need to do some things differently.”
Looking ahead, he said, the Basin would need a plan that supports greater adaptation to a changing climate.
The Discussion Paper identifies priority challenges, including improving river connectivity in the Northern Basin, addressing barriers to native fish recovery, protecting end-of-system outcomes, and restoring habitats. It also considers Sustainable Diversion Limits, climate change adaptation, environmental water reform, First Nations rights and governance, and water quality.
Mr McConville stressed that the Review was not a set of predetermined decisions.
“At this point it is a discussion, not a set of decisions. Nothing in the Review is yet settled, and we want to have a genuine conversation with communities, informed by their lived experience,” he said.
Consultation runs for 12 weeks, from 5 February until 1 May 2026. The Authority has committed to travelling across the Basin to hear directly from communities, industries, First Nations groups, scientists, and stakeholders about what is working and what needs to change.
At the end of the consultation period, submissions will inform the final Review, which must be delivered to the Commonwealth Government before the end of the year.
Local voices mobilise to make sure northern Basin is heard
On the ground in the northern Basin, councils and peak bodies are mobilising to ensure the region’s voice is heard.
Gunnedah Shire Council convened a Northern Basin Forum this week, bringing together key stakeholders from across the northern Basin to collaborate on submissions. Gunnedah Shire Councillor and Murray Darling Association Region 11 Chair Robert Hoddle said the review cycle elevated the importance of coordinated regional input.
“Water is critical to the Gunnedah Shire – not only for essential human needs but for the powerhouse industries that sustain our community,” Cr Hoddle said.
“This review is an opportunity to tell our story clearly and ensure our region is protected for the next decade.”
He said the region needed to be proactive and united.
“We need to be proactive, coordinated, and vocal to secure a stable, prosperous future for the northern basin,” Cr Hoddle said.
“This is our chance to make sure decisions made in Canberra reflect the realities of communities like ours.”
Farm groups are also weighing in on the direction of reform.
The National Farmers’ Federation says the Discussion Paper reinforces that environmental outcomes are influenced by more than just the volume of water recovered.
NFF Water Committee Chair Malcolm Holm said the science pointed to a more complex picture.
“The Discussion Paper reinforces what farmers have been saying for many years: that environmental outcomes are nuanced and depend on more than just the volume of water,” Mr Holm said.
Sustainable Diversion Limits are being met across virtually all catchments, he said, and where environmental problems persist, they are often driven by invasive species such as carp, physical or rules-based constraints, and connectivity issues rather than a lack of water.
After more than 3,000 gigalitres has been returned to the environment at a cost of around $13 billion, Mr Holm said the next phase of reform must focus on smarter management and better outcomes from the water already recovered.
“Given the Report, what further evidence do we need to provide to cease more buybacks?” he said.
NSW Farmers Water Taskforce Chair Richard Bootle said water was the single most precious resource farmers had to feed and clothe the nation.
“We’ve been sounding the alarm on water management for a number of years. It’s beyond time that farmers and communities were treated as equal partners with the environment,” Mr Bootle said.
He said NSW Farmers would fully engage in the Basin Plan Review process, preparing a detailed submission to ensure members’ voices were heard.
All those affected are urged to read the discussion paper and make a submission via the MDBA’s consultation website before consultations close on 1 May 2026.
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