Key points

  • Most of Australia’s rainfall evaporates back into the atmosphere, with only 10% ending up in rivers, lakes and groundwater reserves.
  • Surface water (water in rivers, streams and lakes) is NSW’s most important source of freshwater.
  • These freshwater sources are important for NSW’s environments, wildlife, people and industries to survive.
  • Climate change is warming temperatures, changing rainfall patterns and increasing evaporation, which is reducing water availability and affecting water quality in parts of NSW.
  • The NSW Government has developed state-wide and regional water strategies, and long-term water plans to help NSW adapt to future changes in its water resources. This information is based on the latest climate evidence and climate change modelling data. 

The importance of water resources in NSW

Most of Australia’s rainfall evaporates back into the atmosphere with only 10% ending up in rivers, lakes and groundwater reserves. These sources of freshwater are limited but critical for NSW people, industries and environments. 

Freshwater sources provide us with some of our most basic needs – clean water for drinking and growing food. They also provide spaces for social and cultural activities, and support ecosystems. 

Freshwater contributes to the NSW economy by supporting industries such as tourism and agriculture, and through the value of water entitlements for industry and town water supplies – in 2023, NSW water entitlements were estimated to be worth $41 billion

People

Water resources in NSW are essential for urban water supply. As populations grow in NSW’s major cities, more water is needed to support them. 

In regional NSW, water is also a major part of many livelihoods, and the success of agricultural businesses and jobs can depend on the amount of available freshwater. 

NSW freshwater sources are also valued for tourism, recreation and cultural activities. 

Ecosystems

NSW ecosystems depend on freshwater to some degree. Surface water supports aquatic plants and animals, as well as habitats and species in surrounding floodplains. Water movement that better represents natural flow patterns is needed to keep these ecosystems healthy. 

Groundwater can support entire ecosystems. Natural springs, for example, support a range of plants and animals in arid parts of NSW. 

Economy

Agriculture is one of Australia’s largest industries and uses the most water of any Australian industry. Without long-term access to freshwater, Australia’s agriculture industry would decline, affecting the economy, jobs and food production. 

NSW’s tourism industry also relies strongly on healthy ecosystems to attract tourists. Changes to our water resources can damage tourism businesses. This was seen in 2008, with an estimated loss of $70 million in the River Murray region due to the decline in visitor numbers during drought

How water resources are affected by climate change in NSW

Climate change is increasing temperatures and affecting rainfall, evaporation and climate systems in NSW. These changes will affect the quality and availability of NSW water resources. Pressure on NSW water resources will also increase with the combined impacts of climate change and a growing population. 

Surface water

Climate change is likely to reduce the amount of surface water available in NSW. Warming temperatures and changing climate patterns are projected to: 

  • increase evaporation from water bodies and evapotranspiration from plants
  • change the influence of key climate drivers such as east coast lows, the El Niño Southern Oscillation, the Indian Ocean Dipole, the Interdecadal Pacific Oscillation and the Southern Annular Mode. Changes to these drivers will affect the frequency and magnitude of rainfall events over NSW. 
Groundwater

People access groundwater using bores, some plants can access groundwater when their roots meet the water-table underground, and some ecosystems access groundwater when the water-table reaches the surface through springs or seeps up through riverbeds. 

Groundwater is replenished as rainfall seeps into the ground (a process called groundwater recharge). The processes for recharge include direct infiltration from rainfall onto the land surface and infiltration from surface water.  

Both of these processes are expected to be affected by climate change. In some cases, groundwater recharge may be reduced, for example, in a scenario where rainfall decreases. However, in areas that currently receive high rainfall, recharge may increase because of changes in the frequency and intensity of rainfall events. Groundwater resources can also be affected by sea level rise, which can contaminate fresh groundwater with saltwater, and cause waterlogged soil from increased groundwater levels.  

More research is required to determine how recharge events will be impacted by climate change and how our groundwater supplies will be affected. 

Water quality

Poor water quality has far-reaching impacts on people, communities, wildlife, industries and the economy. 

Climate change is causing changes to our weather and oceans. These changes may reduce the quality of NSW water resources: 

  • sea level rise pushes saltwater further up coastal waterways, degrading freshwater habitats
  • bushfires reduce water quality through ash, sediments and contaminants that enter waterways
  • extreme storms and rainfall events can erode soils and wash them into waterways, carrying sediment and contaminants, and reducing water quality
  • warmer waters in storage facilities, such as dams, can increase the risk of bacterial or algal growth
  • drought conditions increase the concentration of naturally occurring salts in waterways through evaporation and decrease the frequency of high flow events, which flush out salts. 

These impacts can make water resources unsuitable for human water supplies and agriculture, and damage freshwater ecosystems. 

How will hydrology change in NSW?

Adapting to changes in water resources in NSW

Understanding how climate change affects NSW water resources helps governments and decision-makers make plans based on the most important needs. 

The NSW Government manages surface water and groundwater across the state and develops regional water strategies to help NSW adapt to future changes in its water resources. These strategies consider the latest climate evidence and climate change modelling data to see how NSW water resources might be impacted by climate change. The strategies are developed in partnership with water service providers, local councils, communities, First Nations groups and other stakeholders across NSW. 

The NSW Government has also finalised long-term water plans for 9 river catchments in NSW. These plans incorporate environmental outcomes and climate change considerations. 

Local councils and joint organisations can consider climate change impacts in their water planning by: 

  • designing stormwater infrastructure to withstand the more extreme (but less frequent) rainfall and storm events that climate change is projected to bring 
  • planning long-term water supply strategies to account for reduced water availability. 

More broadly, the NSW Government is taking action on climate change through multiple pathways, including the Climate Change (Net Zero Future) Act 2023, the NSW Climate Change Adaptation Strategy and the NSW Climate Change Adaptation Action Plan 2025–2029

Related information

Regional water strategies program – NSW Government

Water – NSW Government

Australian Rainfall and Runoff – Australian Government Geoscience Australia

Natural Resources Access Regulator – NSW Government