The Council of Australian Governments (CoAG) launched a National Water Initiative in August 2003, with the aim of implementing a co-ordinated approach to water conservation across the country. The Commonwealth and the State and Territory governments now intend, among other things:
- to restructure systems of water access entitlements, so as to provide greater flexibility in tailoring water allocations to available resources
- to facilitate the expansion of water markets and trading across and between districts and States, by establishing trading rules and mechanisms, and
- to reform pricing of water and introduce charges based on a full cost recovery approach.
State governments are also undertaking their own reforms in this area. The Victorian Government, for example, has recently handed over to an independent regulator the power to regulate prices in its water industry. It also plans to release a white paper which will announce proposals to encourage water conservation, reform the water sector and enhance management of that State's water resources.
The reform of the water industry presents challenges and opportunities for firms whose businesses require security of access to water or use significant quantities of water (such as water distribution companies, manufacturers and major rural industries such as food and wine producers). There is also likely to be a demand for new infrastructure, including privately funded and operated infrastructure. The developing water trading arrangements and markets are also likely to give rise to new opportunities.
Mallesons is a principal legal advisor to major water utilities (Sydney Water and ACTEW), and has provided advice to these clients on the implications of changes to water regulation in recent years. The firm also has significant expertise in advising on the development and implementation of strategies for securing water entitlements under current arrangements, and the evolution of markets and regulatory regimes in other sectors.
“Mallesons remains at the top of the tree, owing to the strength of its individuals and the sheer quality of instructions it wins.”
Chambers Global Guide 2006-2007