Review of the non-urban metering rules

What changes have been made to the Water Management (General) Regulation 2018 following the Review of the NSW non-urban metering framework?

As a result of the review, the Water Management (General) Regulation 2018 has been amended to incorporate the recommendations outlined in the report (PDF, 3733.07 KB), which followed extensive community consultation.

The changes are designed to ensure water resources are measured and managed fairly across NSW, helping water users comply with their licence obligations.

How many water users are affected by the change in requirements?

High-risk works which account for approximately 83% of the total water entitlement in NSW, remain unaffected by these changes. This includes surface pumps with a diameter greater than 500mm and large-volume water users in inland NSW with licence entitlements of 100ML or more.

What has changed?

Nothing has changed if you have a surface water pump of 500 mm or greater in diameter anywhere in NSW or works nominated by total licence entitlement of 100ML or greater in inland NSW - you need compliant metering equipment in place now, unless otherwise exempt.

For most other water users, the compliance deadlines have been extended.

In the coastal regions, large water users with licence entitlements ≥100ML have until 1 December 2026 to comply with the rules (excluding surface water pumps ≥500mm in diameter who should already be compliant).

Smaller water users across NSW with works nominated by total entitlements of >15 and <100ML, (unless otherwise exempt) have until 1 December 2027 to comply or by the work approval renewal, whichever is later.

Water users with entitlements of 15ML or less are not required to install a meter unless trading water allocations. However, recording and reporting water usage remains mandatory.

What are the new metering requirements?

The metering rules have been updated to better manage risk by considering both the size of the water works and the user's entitlement.

The following table outlines the three main categories that must comply with the non-urban metering rules.

^{1. If there is only 1 bore or pump on the property: groundwater bores less than 200mm and surface water pumps less than 100mm are exempt.
2. Work approval holders with a pre-existing metering condition MW2452-00001 should already have a meter complying with AS4747 in place.} 

Do the rules ensure the majority of water take is accurately measured?

The updated rules are designed to ensure that 95% of licensed water use in NSW is accurately metered by December 2026 - achieving this target a decade ahead of the timeline under the previous regulation.

The changes reinforce the NSW government’s commitment to meeting its obligations under the Murray-Darling Basin Compliance Compact.

In addition, the rules streamline compliance processes, particularly for smaller water users, reducing costs and enabling the use of appropriate measurement devices based on their risk profile.

Were the rules developed with landholder and primary producer consultation?

Yes, the rules were developed through an extensive and inclusive consultation involving all community members including landholders, primary producers, and industry representatives. This included webinars, surveys, and submissions to gather valuable insights and practical expertise. This feedback helped shape the rules that balance accurate water measurement with cost-effective compliance solutions tailored to the needs of NSW water users. All feedback gathered during the consultative process is available in the "What We Heard" report, which can be accessed on the website.

Do the revised requirements meet the Murray–Darling Basin Compliance Compact commitments?

The metering rollout is being accelerated to meet the Murray-Darling Basin Compliance Compact commitments. NSW manages the largest share of water licences and usage nationally, with over 70% of the Basin geographically located in the state. The revised requirements prioritise high-risk works to ensure resources are effectively targeted.

How are you ensuring the changes are successful?

Progress is being monitored, with priorities reviewed and updated annually based on performance and feedback. Quarterly reports () are being published on our website for transparency. If progress is not on track and compliance rates don’t improve, the NSW Government will assess the need for further actions or interventions.

What is the non-urban metering framework?

The NSW non-urban metering reform is part of a broader commitment made by all states and territories of Australia in 2009 and the Government’s long-term plan for better water management in NSW.

Introduced in 2018, the non-urban metering framework sets out clear rules around who needs a meter, the recording and reporting requirements, and the metering equipment standards required. This helps ensure water is being taken according to the rules, with everyone getting their fair share, especially in times of drought. Most water users do the right thing, and they want those who don’t to be held accountable.

Despite these intentions, the implementation of the metering reforms faced significant delays. In response, the NSW Government initiated a review of the framework to accelerate the rollout of meters across the state.

What is the benefit of metering?

Water is a vital and finite resource. Metering enables the measurement and management of water use, ensuring fair distribution, particularly in times of low water availability.

Accurate and timely water use data plays a vital role in supporting critical functions such as sustainable resource management, regulatory compliance, and policy development. It enables essential tasks such as river model calibration, managing extractions within water sharing plan limits, and ensuring equitable and responsible water allocation.

What is the definition of a surface water pump?

A surface water pump is a water supply work authorised to extract water from a surface water source, such as a river.

What is the definition of a high-risk work?

A high-risk work refers to a surface water pump with a diameter of 500 mm or greater or works associated with a total entitlement of 100 ML or more. These works were among the first to be subject to metering requirements and no changes to the metering requirements for these works have been made.

What is the definition of an ‘unintended’ work?

This term refers to a work that does not extract licensed water from a water source but is authorised by an approval. It includes works that are yet to be constructed, internal reticulation systems, those that cannot take licensed water (such as in-stream dams), abandoned works, or those used solely for taking water under basic landholder rights.

When referring to licence entitlement do you mean unit shares or ML per year?

The total licence entitlement is the total amount of water access licence share, usually measured in megalitres (ML) or unit shares (1 share=1 ML), nominated by the nominated work.

Does the type of water use or licence influence the metering requirements?

No, the type of water use or licence does not affect the metering requirements, as they apply to works, not licences.

Floodplain harvesting licences are subject to a different measurement policy.

Why is it different for overland flow taken with an unregulated access licence. Any there any other exceptions?

The difference with overland flow lies in how the water is captured, which makes it harder to measure accurately using AS4747 compliant meters. There are no other exceptions.

Can I use a pattern-approved meter if I am temporarily pumping 114 ML from mobile pumps (remote sites) with multiple works with a diameter of 150 mm?

First, determine the size of the work, followed by the entitlement, to assess if any exemptions apply.

If the pump size exceeds the 100 mm threshold and the linked entitlement to the works is over 100 ML and, the works must comply with AS4747 standards and have a telemetry-enabled Local Intelligence Device (LID) installed under the recommended rules.

If the works are located inland, compliance is required immediately.

If located on the coast, compliance is required by December 2026.

The fact that the pump is mobile or temporary does not affect the metering requirements.

Does the total licence entitlement connected to a work include all access licence categories, such as, high security, general security, supplementary, domestic and stock?

Yes, the total licence entitlement volume thresholds include all share components on your water access licences, such as high security, general security, supplementary, and domestic and stock licences.

For example, if a works approval has a 70 ML high security licence nominated and a 40 ML general security licence nominated, the combined 110 ML means compliance with AS4747 standard meters, including duly qualified person (DQP) validation and telemetry.

Are works nominated by zero-share water access licences exempt from metering if there’s no other entitlement nominating the works?

If a work is not classified as high risk and is nominated by a zero-share water access licence (WAL), it is exempt from metering requirements as it falls under the 15 ML threshold. However, if water allocations are traded into the zero-share WAL’s account, the work must be metered in line with Access Licence Dealing Principles regardless of the volume traded.

I hold a 150 ML entitlement but only get an allocation of 50% so I fall below the 100 ML threshold. Does this mean I don’t need a meter in reduced allocation years?

The rules are based on the total licence entitlement, not the sum of available water determinations (AWD). Since your entitlement exceeds 100 ML, you must install and maintain a meter, regardless of the allocation percentage each year.

Does the licence entitlement threshold apply cumulatively to all water access licences nominating a work or does it apply individually?

Yes, the licence entitlement thresholds apply to the total combined amount. For example, if you have a work that is nominated by 2 WALs of 40 ML and one of 40-unit shares, then your combined total volume is 120 ML. This exceeds the 100 ML threshold, meaning the work requires a meter.

This ensures that the total water taken through the work is accurately measured, reflecting the actual take potential, not just individual WALs.

When will you communicate the rules to coastal water users?

Education and awareness campaigns specifically designed for coastal water users are in development and will begin in the first half of 2025. These initiatives will incorporate a number of engagement methods including webinars, roadshows, newsletters, and fact sheets.

I am a coastal water user with more than 100 ML of licence entitlement. What metering equipment do I need and who can install it?

Yes, if you are a coastal water user with a licence entitlement of 100 ML or more, the new regulation requires the installation of a pattern-approved AS4747-compliant meter, validated by a duly qualified person (DQP), along with telemetry. You will need to have this equipment installed by 1 December 2026. If you have a surface water pump of 500 mm or large, it needs to be compliant now regardless of entitlement size.

Is there any government funding for water users?

There are a range of NSW and Australian Government programs that can help water users manage the impact of purchasing metering equipment:

• The Telemetry Uplift Program funded by the Australian Government offers fully funded telemetry devices and installation for groundwater users in the Murray-darling Basin with over 100 ML in entitlement.
• The Australian Government’s capital asset and expense deductions rules allow primary producers to immediately deduct the cost of water facilities that are primarily and principally for the purpose of conserving or conveying water.
• The NSW Drought Infrastructure Fund provides loans to meet the costs of carrying out capital works, including metering, that benefit the long-term profitability of businesses.
• The Australian Government's On Farm Connectivity Program provides rebates to farmers implementing connected machinery and sensor technology. Round 3 will open for applications later in 2025, with grant funding to be delivered in 2025-26.  Email OFCP@infrastructure.gov.au to receive updates or more information.

Has the cost to water users been assessed by the department?

The department engaged an independent consultant to model the capital and operational costs to water users as part of the review process. The final report will be published on the website when it is available.

I have already invested heavily in metering equipment am I going to have to pay more?

No, if you already have compliant metering equipment you will not need to pay more. The updated rules are designed to make compliance with the rules quicker and easier.

Why is the low volume threshold set below 15 ML?

The 15 ML threshold ensures that 95% of water take is measured under the new metering rules. This standard, reflects a low-risk level for water take. It helps distinguish small, low-risk works, ensuring metering requirements match the scale of water use.

Will a work that falls below the size-based exemption thresholds be exempt based on size regardless of the share component?

Yes, a work that falls below the work size-based threshold is exempt, regardless of the share component as the risk is associated with the work's capacity.

If the work size is above the size threshold but nominated by less than 15 unit shares, does the work still need a meter?

First, determine the size of the work, followed by the entitlement, to assess if any exemptions apply.

A work exceeding the size threshold is subject to metering requirements, but if it is nominated by less than 15 ML entitlement, it qualifies for the low-volume exemption - unless it is a surface water pump with a diameter of 500 mm or greater.

The low-volume licence exemption and the work size exemption operate independently; therefore, both must be considered when determining if metering is required.

What are the requirements for smaller users with works nominated by more than 15 ML but less than 100 ML of total licence entitlement.

All works nominated by total licence entitlements over 15 ML but below 100 ML, (unless otherwise exempt) will be required to install a pattern-approved meter and report their water take. DQP validation and telemetry is optional for this group. These requirements must be met by 1 December 2027 or by the date for renewal of the work approval, whichever is later.

What are the size-based exemptions for groundwater bores and surface water pumps?

If there is only one groundwater bore or surface water pump on a property, bores under 200 mm and pumps under 100 mm are exempt from metering requirements.

What are the rules for multiple pumps and/or bores?

For properties with multiple pumps or bores, size-based exemptions apply as follows:

Surface water pumps:

• 2 pumps: Max diameter 74 mm
• 3 pumps: Max diameter 49 mm
• 4 pumps: Max diameter 39 mm

Groundwater bores:

• 2 bores: Max diameter 159 mm
• 3 bores: Max diameter 129 mm
• 4 bores: Max diameter 119 mm

For simplicity, first check the work size thresholds. If exceeded, then check your total entitlement.

If the total entitlement is under 15 ML, the user is exempt from metering. If the entitlement is between 15 ML and 100 ML, pattern-approved meters are required but without telemetry or a DQP installation. For entitlements over 100 ML, a fully compliant AS4747 meter with LID and telemetry must be installed by a DQP.

Note: No exemption applies for works over 500 mm.

Can wells be eligible for the same size-based threshold exemptions as bores? For example, most wells are over 200 mm diameter yet may only have a small pump under 50 mm discharge.

Under the Water Management Act 2000, both wells and spearpoints are classified as bores. This means they are currently eligible for the same size-based threshold exemptions as groundwater bores.

The review acknowledged concerns that groundwater works like wells or spearpoints, which may not typically be thought of as bores, might not meet the criteria for existing size-based exemptions. However, no changes to the definitions for size-based exemptions were recommended.

A new low-volume threshold now applies to low-risk works, including wells and spearpoints. Water users with wells may qualify for an exemption if the works nominate cumulative licenced entitlements of less than 15 ML. All works with cumulative entitlements between 15 ML to 100 ML are eligible to install lower cost metering. This includes a pattern approved meter with optional DQP and telemetry requirements.

What are my metering requirements if I trade water allocation and I am under the entitlement/size thresholds?

If you trade water and fall under the licence entitlement or work size thresholds, you still need to meet metering requirements. The Access Licence Dealings Principles Order 2004 requires both the buyer and seller to have a meter installed before trade can occur. This applies even if the work would normally be exempt from metering based on size or entitlement.

Does the total entitlement volume used to determine metering requirements include allocation temporarily traded in?

No. Any work involved in water allocation trading must comply with the Access Licence Dealings Principles Order 2004 regardless of any metering exemption. This means a meter must be installed, even if the work would otherwise be exempt based on entitlement of work size.

If I have a water access licence of 80 ML, and then trade in an additional 21 ML of water allocation to finish my crop, would I need a meter?

Yes, the existing Access Licence Dealings Principles Order 2004 prohibits allocation trades unless both the buyer and the seller are metered.