Jennifer Margaret McKay

Aspects of water markets for developing countries: experiences from Australia, Chile, and the US

Water market reforms are being promoted by international organisations, such as the World Bank, and pursued within many developing countries. Actual experiences with water markets are limited and the opinions regarding the beneficial or detrimental impacts diverse. It is therefore crucial to learn from the few functioning markets. Some of the longest operating, and most mature markets in the world, are to be found in Southeastern Australia. This paper examines the outcome of water trade in Southeastern Australia and combined with US and Chilean experiences outlines some lessons for the introduction of markets in developing countries.

Factors affecting water prices in a rural water market: A South Australian experience

Government agencies and water managers have showed an increasing interest for tradeable water entitlements (TWE) as a tool to alleviate the influence of raising water prices and to facilitate a reallocation of water resources to more efficient and sustainable uses from economic, social, and environmental perspectives. An understanding of how the water market works and which factors determine water right prices has become important to establish whether TWE policies facilitate this process. This research shows that the objectives largely have been achieved and that the more efficient irrigators are willing to pay a higher price for water, whereas the least efficient farmers are willing to sell at a lower price, showing that the buyers with high value of marginal product are willing to pay a price in excess of the value of the income generated by the sellers with low value of marginal product. Within the present legislative framework TWE does not, however, always direct water to the most sustainable users in an equitable manner.

Recent Australian Market Mechanisms as a Component of an Environmental Policy That Can Make Choices Between Sustainability and Social Justice

Markets in terms of tradeable water or pollution rights, are increasingly being offered as rational solutions for environmental problems. The rational pursuit of personal gain through trading is assumed to promote increased efficiency in resource use and promote a reduction in the negative aspects of the resource use. The social and distributive effects of the introduction of markets and their rules and operations have received little concerted study and examination. In this paper the role of justice considerations in the development of economically rational environmental decision making will be addressed through some case studies of rural water markets and urban water markets in Australia.

Models of ‘appropriate’ practice in private dam safety assurance

Abstract Large dams are generally built and managed by Governments and private dams are built by individual owners. A number of horrific failures of both types have triggered serious concerns over the safety of dams in each country. For the larger dams, the response has been to spend vast amounts on structural upgrading works. Unfortunately, only a few countries have developed mature dam safety assurance schemes for smaller private dams as identified here. Dam safety legislation is often considered too ‘extreme’ and alternative action is proposed but rarely follows. This is largely because there are no uniform systematic guidelines on determining the level of assurance policy that is ‘appropriate’ for varying circumstances. This paper establishes such guidelines together with eclectic policy models of ‘appropriate’ practice, based on a comprehensive review and analysis of international best practice.

On Community Capitals as We See Them through Photovoice: Cowell Oyster Industry in South Australia

In this article, we discuss a photovoice study of the oyster industry in Cowell on the Eyre Peninsula in South Australia. For the last 15 years the Cowell community has been adding water-based farming – the environmentally sensitive industry of oyster aquaculture - to its land-based farming. The community capitals approach for assessing community sustainability was undertaken using photovoice and a photo stimulated workshop. Whilst this study provides data on natural, produced, and institutional capitals, the method enabled subtle reflections to be made on social and human capitals. Hence it provides some data on these hard to capture aspects of the capitals approach. The method allowed the Cowell community to tell their insider-looking- out story of the impact of oyster aquaculture on their community. The capitals approach linked well with photovoice methodology, and would have wider applicability in assessing the impact of other environmentally sensitive industries and developments in other communities. Findings from the study indicated that oyster aquaculture is viewed by Cowell community members as adding positive social and human capital, and that any negative aspects of the industry on the other capitals are seen as minor.

Using Photostory to Capture Irrigators Emotions About Water Policy and Sustainable Development Objectives: A Case Study in Rural Australia

Participatory research approaches have gained popularity within the natural resource management domain, particularly irrigation management since 1980s. Some of these methods allow the examination of values and emotions with regard to the management of natural resources and hence can supplement other ways of eliciting community responses to policy change. This article discusses the methodology and findings of an image-based participatory research project called PhotoStory. The project was conducted with members of stressed and conflicted irrigation communities in rural Australia. Participants were provided with cameras to record their views about different issues related to sustainable water management and conflicts and were also able to record their emotions and values on these topics. Findings of this project – PhotoStory – give a two-dimensional narration (visual and written) about complex issues related to water policy such as the creation of regional water allocation plans. This method answers how plans and a widespread drought have been experienced and interpreted by people living in two communities. The article concludes with some pros and cons of using this technique with an irrigation community and reflects on the use made of the work by the community and policy-makers.

Australian water allocation plans and the sustainability objective—conflicts and conflict-resolution measures

Abstract The dominant legal discourse in Australian water law and policy since 2004 has been about incorporating several definitions of Ecologically Sustainable Development (ESD) rules into freshwater management. The strategy selected to achieve this has been the Regional Water Allocation Plan (RWAP), which is based on hydrological and biological information about the impact of water use. Several aims of the ESD policy reflect the three pillars (environmental, economic, and social outcomes) common to the use of the term in international instruments, such as the 1987 UN Declaration; all ESD formulations in several state laws and the recent Federal Water Act 2007 look at the integration of the three pillars. The State Acts and the Federal Act insist on the adoption of the precautionary principle and achievement of intra- and inter-generational equity—a stunning reversal of previous policies, where the economic use and social aspects of water use were the primary concern. The ESD policy is not without its critics, especially from the farming communities, hard hit by new water plans that have reduced the amount of water able to be allocated by up to 52%. City dwellers have also been critical of water restrictions in urban areas and the higher cost for water supplied through desalination plants where the groundwater is severely depleted. The RWAP is the tool that must bear the brunt of these conflicts; at present, there are 190 such plans. This paper outlines a research agenda, but also makes preliminary comments on the types of conflicts that have existed, and the potential future conflict types. This is based on legal case analysis and some field work, reports of other authors, as well as observations and discussions with key informants in the several jurisdictions. It finds that there are conflicts between users, between the environment and users, as well as several conflicts related to processes used to consult the community, the science used to reduce allocations and the way the water reductions have been administered. The social capital of the community, the extent of the water allocation reductions and the level of trust in the science are key determinants of how many conflicts will exist in any given WAP region. The paper suggests a law reform that could reduce conflicts, i.e. that a duty to co-operate be added to state laws to require persons working on water plans to work cooperatively in the region and with others in the next water plan region. Such a duty would go some way to increasing the achievement of ESD and overcome the fragmentation and introspective approach of some of the early regional water plans. Citation McKay, J. M. (2011) Australian water allocation plans and the sustainability objective—conflicts and conflict-resolution measures. Hydrol. Sci. J. 56(4), 615–629.

The Decline of Innovative Local Self-Governance Institutions for Water Management: The Case of Pani Panchayats

Water scarcity to a large extent is manmade and large irrigation projects are seen as a solution to the problems of water scarcity. But the solution to the problems that such scarcity generates lies in recognizing the fact that water is a common resource and can be managed sustainably, based on the principles of local and collective self-management. India has a rich history of indigenous systems of water management, some of which are still in use even after thousands of years. Pani Panchayats in Maharashtra are examples of such indigenous self-governance institutions formed for ecological and equitable use of water on the basis of collective control and decision making. But, today, these innovative institutions have collapsed due to various reasons. A study funded by the Australian Center for International Agricultural Research (ACIAR) was carried out to identify the reasons for the decline of Pani Panchayats from a farmers perspective. The results revealed that lack of effective institutional protocol to enforce the rules to govern water use, resolving the conflicts, accompanied by lack of support from the government and other agencies are the major reasons for the decline.

Australian Community Responses to Upgraded Farm Dam Laws and Cost-Effective Spillway Modelling

Recent attention to farm dams and dam safety in Australia and elsewhere reflects both safety and sustainability issues, and is driven by the fact that since built, many dam safety aspects have changed, e.g. population distributions, meteorological information, estimates of rainfall and runoff, engineering methods, and design standards and techniques. Farmers in Australia have often overlooked the common law obligation to review/design dams in line with current standards because of high engineering consulting costs: this leaves them vulnerable to litigation if their dam fails and the downstream community is susceptible to unacceptable risk levels. The seriousness of this problem has been demonstrated by case studies undertaken in the policy-absent State of South Australia and the policy-driven State of Victoria. In each state, ten hazardous private reservoirs were investigated for spillway adequacy in line with state-of-the-art practice. The investigation follows the release of an innovative Australian developed cost-effective spillway design/review procedure that has been made available and promoted in both states to minimize cost burdens to dam owners and encourage better dam safety management. Recent surveys undertaken in South Eastern Australia to test community attitudes to the procedure and implemented dam safety and water allocation policy in Victoria are also reported. These surveys together with the ‘spillway adequacy’ investigations clearly demonstrate that farmers require more than awareness and encouragement to ensure they look after their dams properly.

A Farmer-Friendly Dam Safety Evaluation Procedure As A Key Part of Modern Australian Water Laws

Abstract The largest dams are generally built and managed by Governments; individual owners build small dams. Over time, many dam safety aspects have changed, such as population distributions, meteorological information, engineering methods and design standards, together with the condition of the dams, raising serious doubts about dam adequacy. For the larger dams response has been to spend vast amounts on remedial works. Unfortunately, only a few countries have developed mature safety assurance schemes for smaller dams: these are comparatively reviewed here identifying elements of “minimum” and “best” practice, and providing policy models and guidelines of “appropriate” practice for varying circumstances. Farmers often overlook common law obligation to review/design dams in line with current standards because of high engineering consulting costs. A cost-effective spillway design/review procedure that is applicable to South Eastern Australia, but is transferable to any other region world-wide, is also reported here: this procedure is integrated with the policy models and guidelines, aiming to minimize cost burdens to dam owners, encourage better dam safety management, and provide an acceptable level of safety assurance to downstream communities.