Creating the next generation of water governance

Australia has taken different approaches to water governance, first relying on common law riparian rights, then upon administered allocations, and now on water markets. Each iteration has taken something from its predecessors but also each reflects the circumstances and imperatives of its time and, to some degree, policy fashion. The current version emphasises markets and science, and aims to diminish the role of traditional instruments such as regulation and administration. An important lesson of history is that public policy often fails, at least to some degree, or causes adverse "spillovers". Whatever is perceived to be today's perfect solution is likely in time to be understood to have been inadequate, or perhaps foolish. Even as current water policy settings are being put in place, it is important to envisage their inevitable change and replacement. Drawing on the history of water governance, emerging challenges and opportunities, and basic concepts of natural resource governance, this article considers what might be needed for the next generation system of effective, efficient and fair water governance. The article is particularly informed by the expectation that the renewed interest in infrastructure development and the proposed substantial investment in the north of Australia will trigger the need for new legal arrangements, and be the catalyst for further policy reforms.