Water Account, Australia

Nationally, 2022–23 was one of the wettest years on record, with rainfall well above the long-term average, driven by a third consecutive La Niña and widespread flooding. Major dam storages reached near capacity, and inland water bodies expanded to their largest extent since 2011. 

In contrast, 2023–24 began with the driest three-month period on record before shifting to heavy rainfall in November and January, followed by dry conditions in southern regions. Overall, rainfall remained above the long-term average, but storages declined by 8%, with notable falls in inland New South Wales, southern Victoria, South Australia, Tasmania and south-west Western Australia. These fluctuations shaped water allocations and consumption patterns, with high opening allocations early in the year supporting irrigation and household use, while later dryness increased reliance on distributed water and reuse sources. 

The Water Account, Australia, 2023–24 provides national and state/territory estimates of water supply, use, and consumption for the 2022–23 and 2023–24 reference periods, along with an updated time series from 2014–15. It includes physical and monetary supply and use tables, summary indicators, water productivity and intensity measures at state and territory level, and downloadable data cubes.

This edition introduces a major methodological update: a CSIRO-developed satellite-based evapotranspiration model to estimate irrigation water use, replacing survey data and providing nationally consistent estimates, though still experimental and explained in an information paper with planned enhancements.

Total water consumption rose 12.9% to 17,223 GL in 2023–24, despite annual rainfall being above the long-term average. This increase was driven primarily by agricultural irrigation, which accounted for the largest share of water consumption and responded to drier conditions later in the year. Three consecutive La Niña years (2020–23) left major dam storages full, enabling strong irrigation early in the season, while the return of El Niño in 2023–24 brought a warmer spring, reinforcing demand for irrigation and household water. The increase in total water consumption was driven by:

• New South Wales, increasing 13.8% from 5,759 GL to 6,552 GL
• Victoria, increasing 21.3% from 3,009 GL to 3,649 GL
• South Australia, increasing 24.7% from 955 GL to 1,191 GL
• Tasmania, increasing 58.8% from 374 GL to 594 GL.

Despite an increase in water availability, household water prices rose across most states and territories:

• Households paid an average of $3.71 per kilolitre, up 4.4% from 2022–23.
• Industry paid an average of $0.35 per kilolitre, down 3.4% from 2022–23.

Industry water intensity and water use per household estimates are shown below to illustrate how usage patterns have changed alongside the pricing changes noted above:

• Average household water use rose 3.6% from 2022–23 to 2023–24, from 168 kL to 174 kL per household, despite higher prices. This reflects warmer, drier conditions in southern regions and population growth in major cities.
• Over the longer term, household water use has steadily declined, from 190 kL per household in 2015–16 to 174 kL in 2023–24, a decrease of 8.5%, reflecting improved efficiency and conservation habits.
• The lowest average household water use since 2014–15 occurred in 2022–23, at 168 kL per household, driven by widespread rainfall and flooding during the La Niña climate phase, which kept gardens green and reduced outdoor watering needs.
• Industry water intensity increased from 6.34 to 7.04 ML per $m GVA, indicating industries - particularly the Agriculture, forestry and fishing industry - used more water per unit of economic output as irrigation expanded during dry conditions.

In 2023–24, total self-extracted water use decreased 14.2% to 58,447 GL, reflecting reduced demand for hydroelectricity generation during drier conditions and lower dam storages.

• The Electricity, gas, water and waste services division accounted for 89.9% of self-extracted water use, which decreased 15.7% to 52,561 GL in 2023–24. A large proportion of this water (76.3%) was used for hydroelectricity generation and is non-consumptive, meaning it is largely returned to rivers after use.
• The decrease aligns with a 22.5% drop in hydroelectricity water use nationally, driven by reduced dam inflows and storage levels, particularly in Tasmania.
• In 2023–24, Tasmania’s Hydroelectricity generation industry self-extracted 27,673 GL of surface water. Although this was 24.4% lower than in 2022–23, it still represented 47.3% of Australia’s total self-extracted water. Almost all of this water was used in-stream and returned directly to river systems.

Of the 58,447 GL of water extracted from the environment in 2023–24, 12,496 GL was extracted for the purpose of supplying to others (distributed water), of which:

• 10,635 GL was supplied to industries, including own use by the Water supply, sewerage and drainage services industry and distribution losses.
• 1,861 GL was supplied to households.

Key industries extracted the following volumes directly from the environment:

• Agriculture, forestry and fishing: 4,054 GL, up 4.1% from 2022–23, reflecting strong irrigation demand during drier conditions and expanded summer cropping.
• Mining: 1,349 GL, down 6.5%, as reduced rainfall-related disruptions allowed more efficient water use and less need for dewatering.
• Manufacturing: 351 GL, up 18.7%, driven by higher production activity in food and beverage processing and increased reliance on self-extracted sources in eastern states.
   

• Distributed water use increased by 16.8% in 2023–24 to 12,496 GL, with 99.8% supplied by the Water supply, sewerage and drainage services industry.
• The increase was driven primarily by demand from the Agriculture, forestry and fishing industry, which relies on irrigation suppliers and paid river water allocations. In 2023–24, the Agriculture, forestry and fishing industry used 7,618 GL of distributed water – an increase of 21.1% from 2022–23 – and accounted for 61% of total distributed water use.
• The Manufacturing industry used 235 GL, a 3.6% increase, reflecting steady demand from food and beverage processing and other water-intensive activities.
• The Mining industry used 132 GL, up 14.2%, supported by higher production activity and operational needs in major resource regions.

Australian households used 1,861 GL of distributed water in 2023–24, which accounted for 14.9% of national distributed water and represented an increase of 6.2% from 1,753 GL in 2022–23. This rise reflects warmer conditions and lower rainfall across many capital cities. All states and territories recorded increases, with the largest percentage gains in Western Australia (12.9%) and the Northern Territory (9.6%).

Household water use varies across Australia, with the Northern Territory and Western Australia well above the national average of 174 kL per household in 2023–24, up from 168 kL in 2022–23. Every state and territory recorded an increase in water use per household from 2022–23 to 2023–24.

• Northern Territory: highest average use at 330 kL per household, up 6.8% from 309 kL in 2022–23, driven by a hotter climate and larger outdoor areas.
• Western Australia: second highest at 243 kL, up 8.8% from 224 kL, reflecting Perth’s driest six-month period on record and population growth.
• Tasmania: lowest at 155 kL, up 8.2% from 143 kL, consistent with cooler conditions and smaller irrigated areas.
• Other states and territories:
   
  • New South Wales: 166 kL, up 2.3% from 162 kL
  • Victoria: 156 kL, up 3.2% from 152 kL
  • Queensland: 164 kL, up 2.0% from 160 kL
  • South Australia: 190 kL, up 2.1% from 186 kL
  • Australian Capital Territory: 174 kL, up 5.0% from 166 kL.

Reuse water is playing a growing role in water security strategies, particularly during dry periods. In 2023–24, national reuse water supply increased by 11% to 306 GL. Despite this growth, reuse water remained a small share of total water consumption – less than 2% nationally.

Key users of reuse water:

• Electricity, gas, water and waste services: 106 GL, an increase of 14.7% from 2022–23.
• Agriculture, forestry and fishing: 88 GL, an increase of 13.8%, supporting irrigation during dry conditions.
• Manufacturing: 25 GL, a decrease of 3.0%.
• Households: 7 GL, an increase of 14.9%.

Victoria used the most reuse water of any state or territory, with 90 GL in 2023–24. This was a 26.5% increase from 2022–23, reflecting expanded recycled water schemes and irrigation during a period of warmer weather and below-average rainfall.

Total national water consumption by industry increased by 11.5% in 2023–24, from 15,795 GL to 17,604 GL, reflecting higher irrigation demand and increased reliance on water utilities during drier conditions. The Agriculture, forestry and fishing industry remained the dominant user, while other industries showed mixed movements.

• Agriculture, forestry and fishing: consumed 11,760 GL in 2023-24 (a 14.6% increase from 2022–23), accounting for 68.3% of total consumption.
• Water supply, sewerage and drainage services: consumed 3,577 GL (a 10.0% increase from 2022–23), representing 20.8% of total consumption, including distribution losses.
• Mining: 749 GL (a 7.7% decrease), representing 4.4% of total consumption.
• Manufacturing: 472 GL (a 9.9% increase), representing 2.7% of total consumption.

Favourable wet conditions early in 2023–24, combined with hotter, drier conditions later in the year, drove strong irrigation demand, pushing water use for the Agriculture, forestry and fishing industry to its highest level in the time series. The states with the highest water consumption for this industry in 2023–24 were:

• New South Wales: 4,679 GL (an increase of 13.4%), contributing 39.8% of the national total.
• Victoria: 2,666 GL (an increase of 29.3%), accounting for 22.7% of the total.
• Queensland: 2,546 GL (an increase of 0.9%), representing 21.6% of the total.

Tasmania recorded the largest percentage rise (78.2%), reflecting low rainfall and high irrigation demand, while Western Australia (-18.9%) and Northern Territory (-6.0%) were the only jurisdictions to record decreases, linked to local water availability and climatic conditions.

The increase in water consumption by the Agriculture, forestry and fishing industry occurred despite area-average rainfall falling 12.3% from 611 mm in 2022–23 to 535 mm in 2023–24, and major dam storages declining by 8.1% to 57,931 GL. High storage levels early in the year enabled irrigators to take advantage of full allocations, while drier conditions later drove demand for irrigation. Over the decade, water use has closely tracked climate variability:

• Lowest consumption (7,109 GL) in 2019–20 during severe drought and low storages (39,388 GL).
• Highest consumption (11,760 GL) in 2023–24, supported by strong allocations despite declining inflows.

In 2023–24, total expenditure on distributed water was $11.57 billion, an increase of 13.4% from 2022–23. Key contributors were: 

• Households at $6.90 billion, an increase of 10.9% from 2022–23.
• Other industries at $2.19 billion, a 13.1% increase.
• Agriculture, forestry and fishing at $0.67 billion, a 13.2% increase.
• Despite using far less water than industry, households spent nearly twice as much overall – reflecting the higher cost of treated water supplied to homes versus raw or bulk water supplied to businesses.

Average household water prices showed moderate movements across states and territories in 2023–24, with New South Wales recording the largest increase, while South Australia maintained price stability.

• New South Wales recorded the largest average household price increase between 2022–23 and 2023–24 at 10.0%, reflecting higher costs for water utilities and infrastructure upgrades.
• Western Australian average household prices rose 5.3%, driven by increased reliance on desalination during a very dry period in Perth.
• South Australian average household water prices remained unchanged at $3.79 per kL, showing price stability compared to increases in most other states and territories.

In 2023–24, the Water supply, sewerage and drainage services (WSSDS) industry extracted 12,470 GL of water from the environment, sourced as follows:

• Surface water: 11,753 GL (94.2% of total), remaining the dominant source and reflecting reliance on rivers and major dam storages for urban supply.
• Groundwater: 547 GL (4.4%), providing a stable secondary source, with extraction slightly higher than in 2022–23 as utilities supplemented supply during dry conditions.
• Seawater for desalination: 170 GL (1.4%), continuing as a contingency source mainly used in Western Australia and parts of New South Wales during very dry periods. While national desalination volumes fell slightly from 180 GL to 170 GL, localised increases occurred in Western Australia due to a dry period in Perth.

Desalination use fluctuates sharply with climate extremes – peaking at 385 GL in 2019–20 during severe drought, remaining elevated through 2020–21 and 2021–22, then easing as storages recovered. Groundwater, by contrast, has remained relatively stable over the decade, averaging around 550 GL per year, underscoring its role as a consistent backup source.

In 2023–24 the WSSDS industry received 2,249 GL of wastewater. Once treated, a large proportion of wastewater is either supplied to industries and households as reuse water or returned to the environment as return flows. In 2023–24:

• 272 GL of reuse water was supplied to industries and households, up 12.6% from 2022–23.
• 373 GL of water was returned to the environment, down 11.8% year on year.

Wastewater volumes have generally increased over the past decade, rising from 2,051 GL in 2014–15 to a peak of 2,420 GL in 2021–22, before easing slightly in the last two years. This trend reflects population growth and service expansion, with recent declines likely influenced by water efficiency measures and variable climatic conditions.

Note: the volume of wastewater received/collected is typically greater than the volume of reuse water and return flows combined. This is due to losses during the treatment process (including evaporation) and stocks of water not yet released. 

Self-extracted water use by the WSSDS industry surged in 2023–24, reflecting its critical role in meeting urban water demand and the influence of climate variability on supply strategies.

• Second-highest volume since 2014–15: the industry extracted 12,470 GL, up 16.9% from the previous year, slightly lower than the 2017–18 peak (12,584 GL) following wetter conditions and storage recovery.
• Highly variable over time: over the past decade, volumes ranged from 8,770 GL in 2019–20 during severe dryness to the 2017–18 peak, highlighting how climatic conditions and water availability drive extraction patterns.

The following key changes were implemented in the 2023–24 edition of the Water Account, Australia (WAA):

Evapotranspiration model introduced for agricultural irrigation estimates

This release introduces a new method for estimating irrigation water use in the agriculture industry, using a satellite-derived evapotranspiration model developed by CSIRO and endorsed by the ABS Economic and Environment Methods Board (TEEMB) in November 2025.

Experimental estimates for 2022–23 and 2023–24 replace survey-based irrigation data following the discontinuation of the ABS Agricultural Survey/Census. This significant methodological change creates a break in the time series. Users should interpret movements between 2021–22 and 2022–23 with caution, particularly for self-extracted and distributed water use splits in Queensland, South Australia, and Tasmania.

The new approach is fit-for-purpose for national and state-level reporting and will be refined over time. Future improvements will include enhanced accuracy, crop-level detail, and separation of surface water and groundwater sources. An information paper in this release provides further detail on the methodology and its benefits, and additional detail can be found in the Methodology section.

Inclusion of state/territory-level productivity and intensity estimates

For the first time, this release includes water productivity and intensity indicators at the state and territory level. These measures show the economic efficiency of water use across jurisdictions, expressed as Gross Value Added (GVA) per megalitre (productivity) and megalitres per million dollars of GVA (intensity). This enhancement supports regional comparisons and aligns with SEEA standards. Refer to Table 1.1 in the Data downloads section for details.

Sea water discharges and discharges to land removed from return flows

This release removes “returns to the sea” including sea water used for cooling, and discharges to land from the return flows component in the Physical Supply and Use tables (PSUTs) to align with SEEA Water standards. These flows do not re-enter inland water systems and are now treated as consumptive use, improving conceptual consistency and accuracy of water consumption figures.

New presentation for hydroelectricity generation in PSUTs

Hydroelectricity generation (ANZSIC 2612) is now presented in its own row in the PSUTs, rather than being grouped under Electricity and gas supply. This change improves transparency, as hydroelectricity accounted for almost all of the water use in that category.

Revisions to the time series

Minor revisions have been applied to the Water Account time series dating back to 2014–15 due to updated source data and model improvements. These changes may result in discrepancies between tables in this release and previous editions.

This release previously used catalogue number 4610.0

The ABS has modernised agricultural irrigation water estimates by adopting a satellite-based evapotranspiration method developed by CSIRO. For details on why the update was needed, how the method works, and what it means for the future of water statistics in Australia, refer to the Information paper.