A NSW Government website

2022-23 Annual progress report on water strategy implementation

Sustainable groundwater

Enhanced, state-wide focus on sustainable groundwater management

Long grass by the water.
An enhanced, state-wide focus on sustainable groundwater management

Groundwater is a vital and strategic natural resource for NSW, critical for towns and villages, agriculture and other industries. Without groundwater, many towns and villages would run out of water during drought. Groundwater provides vital refuges in river pools for animals and vegetation and many of our wetlands and a wide range of other ecosystems also rely on groundwater.

What we have delivered in 2022-2023

NSW Groundwater Strategy

Our knowledge of groundwater and the ecosystems it supports continues to grow and our notion of achieving sustainability is evolving. Community perceptions of what constitutes fair access to groundwater are also evolving, particularly concerning access for Aboriginal people. However, our groundwater resources are vulnerable. A more variable climate is affecting rainfall patterns, decreasing surface water flows and reducing groundwater recharge and availability. These risks are heightened as population growth, land use practices and increased demand from communities and industries place a strain on our groundwater resources. Apparent gaps in our knowledge and data about the resource and its quality make managing these risks challenging.

Without better management, ecosystems, regional towns and cities, communities and valuable economic activities that depend on groundwater are threatened.

To respond to these challenges, the NSW Groundwater Strategy has been developed through a comprehensive, evidence-based whole of government process, supported by stakeholder engagement and technical input of an external advisory panel over a 3-year period.

The draft NSW Groundwater Strategy was exhibited in July 2022 for a 6-week consultation window. Over 529 stakeholders participated in engagement sessions, with 59 formals submissions received.

The final NSW Groundwater Strategy was released in December 2022. An Implementation Plan has been developed and will be published by the end of 2023.

Implementation of the Strategy has progressed, with two companion guides that provide relevant background information on our groundwater resources and how we manage them released:

The NSW Groundwater Strategy relates to place-based strategies. Currently there are 44 actions listed in finalised regional water strategies that specifically identify regional groundwater issues.  This will increase as more regional water strategies are finalised.

Reducing groundwater risks

Groundwater is at risk from climate change, and it is projected that groundwater recharge will decrease by 15% on average across the state by 2060. Future groundwater management responses will continue to be informed by evidence-based processes and the department has recently partnered with the CSIRO to study potential climate change impacts on groundwater. The research project used new climate and river flow simulations to provide an overall picture of how climate change could impact groundwater resources in NSW. This work has been published by the CSIRO in Impact of climate change on groundwater in NSW.

A review of the NSW groundwater policy framework has commenced and will consider policy approaches to groundwater dependent ecosystems, groundwater quantities, levels and quality, and groundwater interactions with land and surface water. Review outcomes will inform further actions.

Building on evidence-based processes, a further review is also underway on sustainable groundwater extraction limits to examine our approach to setting long term average annual extraction limits in priority areas, and to consider resource sustainability and socio-economic factors in a changing climate.

Research program

Throughout 2024, the department will collaborate with our research partners to establish long-term science programs. These programs aim to continually improve our knowledge of groundwater dependent ecosystems, groundwater quality and flows, impacts of climate change on groundwater resources and to identify potential sources of potable water in some regions. Improved understanding of groundwater processes will inform future groundwater management decisions.

We are also partnering with OneBasin CRC to progress water banking (also called Managed Aquifer Recharge) in NSW.

Contribution to water strategies

Development and progressive implementation of the NSW Groundwater Strategy contributes to implementing the following water strategies:

  • NSW Water Strategy
    • An enhanced state-wide focus on sustainable groundwater management
    • Pilot new technologies to increase our water options
    • Collaborate to harness new research, innovation and technology
  • NSW Groundwater Strategy
    • All strategy outcomes
  • Regional water strategies
    • Publish guidance on accessing groundwater for high priority needs
    • Protect priority aquatic and groundwater dependent ecosystems
    • Protect ecosystems that depend on groundwater
    • Protect ecosystems that depend on coastal groundwater
    • Establish sustainable extraction limits for surface water and groundwater sources
    • Characterise and plan for climate change and land use impacts on coastal groundwater sources
    • Support towns to understand if groundwater can provide a reliable water supply when surface water availability is limited
    • Use groundwater more efficiently, innovatively and sustainability