1. Efficiencies in Murrumbidgee Irrigation Area GL 2000/01 Irrigation water (surface) Irrigation water (groundwater) Rainfall Regional groundwater 1048 439 26 Off-farm conveyance 90% 95% On-farm conveyance 88% 90% Field efficiency 89% 95% Edge of farm 836 946 1162 Root zone Edge of field Water use efficiency Water productivity 87% 91% 798t/GL 836 Economic return $198K/GL $207 1419 ET Shallow ground- water 118 1,300,241 tonnes $322m profit Total water supply 1630 18 Applying project results Current 75 GL saved+$14m profit

2. Improving efficiency Off-farm

3. Threats to water security

4. Current Integrated Water Supply Scheme

5. Early application of our water systems economics Cost-benefit of options commissioned on behalf of the Kimberley Expert Panel: Establishing the baseline price of water under future supply and demand scenarios

6. Evaluating progress toward the Goal TERM Water in the Australian Economy By 2032: 5 Million more people 34% increase in irrigation efficiency 22% increase in household efficiency 15% decrease in rainfall ± water recycling ± seawater desalination ± rural water trading 2001 2032 Shadow price $kL Perth$10.50 $5.80 $4.20 $3.80

7. Impacts valued to date Some of the research impacts that the Flagship has valued: Identified an additional 20 Gigalitres per annum of recoverable water from Perth primary groundwater supply (saving about $200m in capital works); Climate analyses underpinning accelerated investments in new water infrastructure in WA and Vic of $500M and $50M. Identified irrigation water savings of about 295 GL in the Murrumbidgee catchment (worth about $200m on the permanent trade market).

8. What we will look like in 2007-2008 $80M annual R$D budget ($30M external) Four Themes Water Resource Observation Network Better Basin Futures Urban Water Healthy Water Ecosystems Regional portfolios: SEQ WA MDB Northern Australia Research and adoption - in excess of 50 partners across Australia.