Water sharing

With electricity we have a national grid. Essentially an electricity retailer can buy power from any generator, anywhere in Australia. Since water is stored and its collection is based on a catchment area, water retailing - even in Melbourne with its three retailers buying water from the same wholesaler - is a monopoly supply everywhere in the world. There is no "contestability" in water retailing, unlike electricity (and gas). However in a nation where some State boundaries are entirely arbitrary and towns on either side of the State boundary may draw on the same natural catchment, there are arguments for sharing water across State boundaries.

The Australian Local Government Association (ALGA) reports the ABC says it wants authorities to consider allowing regional towns to share water across state boundaries during drought. Mayors agreed to the idea at the annual ALGA national conference in Canberra this week. Steve Jones, the Mayor of the Lockyer Valley, west of Brisbane, put forward the motion and says it is time authorities realised water shortages do not end at state borders. "Because it doesn't matter what we do in life - we must have water," he said. "We can't overemphasise enough that we need to look at all possible alternatives to make water available to those who need it in this country."