Managing Cumulative Effects of Farm Dams in Southeastern Australia

AbstractChallenges abound for water managers attempting to address problems that have cumulative effects. This paper discusses some of these challenges and potential solutions through a case study of farm dam management in the Australian state of Victoria. Farm dams are useful sources of water but also have an impact on the environment because they capture water that might otherwise flow into streams. Responding to this problem, the Victorian government enacted the Farm Dams Act in 2003, which expanded the farm dam licensing system. To measure the outcomes of this law, farm dam maps were analyzed using GIS and dam owners were interviewed. Map analysis showed a 65% reduction in the construction rate of dams used for irrigation after the implementation of the Act, and interviews suggested the revised licensing system made it more difficult for farmers to build new irrigation dams. The combination of direct regulation and economic instruments employed in the Farm Dams Act reduced the rate of dam construction and increased the political acceptability of the changes. Consultation and education complemented the other policy instruments by increasing community support for the policy and compliance with its licensing requirements. The case study suggests that earlier action to expand the licensing system would have resulted in many benefits including savings in public resources, increased certainty of water supply for farmers, and better protection of the environment.