Programme OS6g Public-private
partnership abstract 615
Aquifer Storage and Recovery:
Author(s): a framework to compare opportunities
for market based policy approaches in Australia and France
Author(s): John Ward, Peter Dillon, Agnes Grandgirard
agnes.grandgirard@csiro.au
Policy & Economic Research Unit
CSIRO Land and
Water
PMB 2, Glen Osmond SA 5064, Australia
Ph: +61-8-8303 8774 Fax: +61-8-8303 8582
Keyword(s): governance, groundwater, water allocation
Article:
Poster:
Session: OS6g Public-private
partnership
Abstract Many cities are experiencing mature urban water economies, characterised by limited opportunities for
future water impoundments, rising incremental supply and impoundment costs, intensified competition and increased
interdependencies between diverse water uses. Aquifer storage and recovery (ASR) is currently promoted as one
management strategy to augment existing supplies and in many jurisdictions is assuming increasing importance in the
portfolio of urban water management strategies. Consistent with trends in international water policy development,
Australian water reform has emphasised institutional and governance approaches promoting voluntary transfers of
water through market exchange. The reform process has made substantial advances in addressing the constraints and
tensions associated with mature rural water economies, with limited influence in urban water systems. Transferable
water storage and extraction entitlements vested with water bankers warrant exploration due to their potential to
induce private investment to secure water supplies and improve catchment water use efficiency. What remains
unclear is the degree of alignment of new water management technologies such as ASR operations with explicit
water reform directives of market development and the capacity of subsequent urban water legislation to provide
consistent and coherent ASR guidelines. The paper describes a systematic approach to align the hydrological
characteristics of an aquifer with economic and policy interpretations central to the development and management of
ASR. The paper introduces a schema to identify the elements of the urban terrestrial water cycle specific to ASR,
the development of a typology to characterise the aquifer potential for ASR, and determine the nature of property
rights for each system element according to the principles of robust separation of water rights. We implement the
schema to ascertain the opportunities for market based approaches in ASR subject to French and Australian water
policy.