Powers and functions

Last updated: 2 Jul 2025

The Inspector-General of Water Compliance’s functions and powers are set out in the Water Act 2007 (Cth). The agency is supported by the Department of Climate Change, Energy, the Environment and Water (DCCEEW)

Water Act 2007

The passage of the Water Act(Opens in a new tab/window) initially set up two Australian Government agencies:

The MDBA performs many roles under the Water Act(Opens in a new tab/window). One is managing the Murray-Darling Basin's water in a sustainable way.

The CEWH manages the Australian Government's water holdings to be used in a way that improves the health of Australia's rivers, wetlands and floodplains.

The Water Act also gives certain responsibilities to:

An amendment to the Water Act in 2021 established the Inspector-General of Water Compliance.

Basin Plan 2012

More than 3 million Australians use the Basin's water for crops, stock and drinking water. It's also a place for tourism, recreation and cultural connection. A variety of ecosystems, communities, industries and cultural practices rely on water from the Basin.

The Basin Plan(Opens in a new tab/window), authored by the MDBA, sets out how water is managed in the national interest, including balancing environmental outcomes with social, economic and cultural interests. The Basin Plan is a separate legislative instrument. It is made under and in accordance with the Water Act.

Water trade

The Basin Plan sets out water trading rules. The Inspector-General of Water Compliance is responsible for enforcing these rules.

Water trade regulation checks that Basin governments and agencies meet the trade rules. The rules apply to water buyers, sellers and brokers when trading water.

Records of trades must be accurate and complete for water market price reporting. The frequently asked questions below provide general guidance and information on the rules for trading water.

Download

Data accuracy on trade forms (PDF 154 KB) 
Data accuracy on trade forms (PDF 238 KB)

If you have difficulty accessing this file, visit web accessibility(Opens in a new tab/window) for assistance.

Functions

The Inspector-General’s functions include:

  • Oversight of other Commonwealth agencies under the Act
  • Oversight of Basin State governments and agencies under the Act
  • Enforcing compliance with the Act
  • Conducting inquiries into how agencies perform obligations under the Act
  • Engaging with the Australian public on the management of Basin water resources

These functions focus on the integrity of the management of Basin water resources. They are directed towards four outcomes for the Inspector-General of Water Compliance, to:

  • Ensure it is lawful
  • Ensure it is visible
  • Do it better
  • Make it better

Ensure it is lawful

The Inspector-General of Water Compliance works to ensure Basin water managers and users meet their obligations under the Water Act and the Basin Plan.

Ensure it is visible

The Inspector-General of Water Compliance works to provide the Australian community with visibility over the integrity of Basin water management.

Do it better

The Inspector-General of Water Compliance works to raise performance and drive improvements in standards of Basin Plan delivery.

Make it better

The Inspector-General of Water Compliance uses knowledge, evidence and insights to input to the ongoing reform of water regulation.

Stay in the know for news and updates from Inspector-General of Water Compliance

Everyone in the Murray-Darling Basin can help ensure that the Basin Plan is fair, transparent and sustainable. Join us on the journey.