On 1 July 2026, the NSW Department of Climate Change, Energy, the Environment and Water announced opening water allocations for the 2026-27 financial year.
The announcement provides an overview of water availability across NSW and highlights the varying conditions facing groundwater, unregulated, and regulated river users. While many licence holders have received full opening allocations, dry conditions in parts of inland NSW continue to impact general security water users.
Water allocations
The announcement is largely positive for groundwater users, with most major and local water utilities, domestic and stock, salinity and water table management receiving 100% entitlement.
Unregulated river uses have mostly received full opening allocations. However, access to water in unregulated systems depends on river flow conditions. Even where a licence holder has an allocation, water can only be taken when the flow thresholds and licence conditions are satisfied.
The position for regulated river systems varies. High-priority users, including local water utilities and holders of domestic and stock licences have received full opening allocations, ensuring essential community needs, town water supplies, stock watering and environmental conditions can continue to be met. The Namoi and Gwydir valleys have performed well, with moderate to high opening allocations. In contrast, no opening allocations have been announced for general security users in the NSW Border Rivers, Murray and Murrumbidgee valleys, while irrigators in the Lower Darling have received only limited allocations.
These results reflect the varied seasonal conditions experienced across NSW such as below-average rainfall, and reduced inflow in parts of inland regions.
Importance of Water Rights
The 2026–27 allocation announcements are a timely reminder that water rights are not just an environmental or policy issue. They are also a critical legal, commercial and operational issue for farmers, landowners, developers, businesses and regional communities.
In NSW, a water access licence is required to extract water for irrigation, industrial or commercial purposes. These licences are governed by the Water Management Act 2000.
Water rights are managed separately from land ownership. A water access licence provides an entitlement to a share of available water and may be bought, sold or transferred separately from the land itself.
This means water rights can significantly affect the value, productivity and future use of rural land. Without adequate water access, cropping and livestock options may be limited, and long-term planning can become more difficult. Conversely, properly structured water entitlements, approvals and agreements can protect productivity, support commercial certainty, and reduce the risk of disputes.
How M+E can help:
Morgan + English has extensive experience advising on water licences, entitlements and related transactions. With our rural roots and practical understanding of regional communities, we assist clients with the sale and purchase of water entitlements, access licences and approvals, transfers, water rights in property transactions, easements, compliance issues, environmental advice and negotiations with water authorities.
It is essential that landowners, irrigators, and businesses ensure that their water rights are properly understood, protected, and managed. Our Land, Home + Water team can provide tailored advice on water licences, entitlements, purchases and related agreements.
For further information please contact Jacki Osmand at jacki.o@morganenglish.com.au
