The management of Australia's most vital river system, the Murray-Darling Basin, is under intense scrutiny as a major class action lawsuit unfolds in the NSW Supreme Court.
The case, brought by 28,000 irrigators from across northern Victoria and southern New South Wales, challenges the Murray-Darling Basin Authority's (MDBA) operational decisions.
The outcome has the potential to redefine the relationship between water policy, bureaucratic responsibility, and regional communities.
The central claim is that the MDBA breached its duty of care to irrigators by mismanaging river flows, which allegedly resulted in significant water loss and reduced allocations for agricultural producers.
The lawsuit focuses on the MDBA's decisions to use "overbank" flows through the Barmah-Millewa redgum forest during the 2017-18 and 2018-19 water years, with plaintiffs arguing the method of water transfer directly impacted their livelihoods.
Latest Stories
According to plaintiffs' counsel, Tony Bannon SC, the MDBA failed to follow its own procedures and guidelines, leading to a substantial loss of water—an amount that, if retained, could have increased water allocations for irrigators.
The alleged mismanagement resulted in farmers facing lower profits, higher costs for temporary water, and, in some cases, the inability to meet supply contracts.
In its defense, the MDBA maintains that its actions were a necessary and reasonable response to complex river conditions.
Counsel for the MDBA, Sophie Callan SC, told the court that overbank flows were a "recognised lever" used to ensure sufficient water supply downstream of the Barmah Choke, particularly to meet South Australia's entitlement.
She stressed river operators do not have the luxury of hindsight and must make difficult judgments in dynamic situations, with the MDBA acting conservatively to manage the risk of water shortfalls.
This legal battle is not an isolated event.
It is one of several major legal actions and investigations—including a separate $750 million flooding claim and a NSW ICAC inquiry—that are collectively questioning the accountability and transparency of water governance.
Narrandera's David Farley, a noted agricultural leader, has highlighted the broader context, pointing out that an estimated $2.25 billion in claims and investigations currently hang over Basin management.
He contends that the MDB Plan, as currently managed, functions as an environmental policy rather than a framework for national resilience and food security.
The case has drawn strong support from local leaders and irrigators, who see it as a critical step toward holding authorities accountable.
Southern Riverina Irrigators chief executive Sophie Baldwin stated legal action is not just about financial damages but about ensuring better management of water resources and protecting Australia's capacity for food production.
With the court case expected to run until October, the proceedings will continue to test the MDBA's legal and operational foundations.
For the North East and Goulburn Murray region, the resolution of this case is of immense importance, as it touches on the core issues of economic viability and the future of irrigated agriculture in Australia.
