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EXPLANATORY NOTES

INTRODUCTION

1 The Water Account, Australia (WAA) is one of the environmental–economic accounts produced by the Australian Bureau of Statistics (ABS) which is compiled, as far as possible, in accordance with the System of Environmental-Economic Accounting (SEEA). It consists of supply and use tables (collectively referred to as flow tables) for both physical and monetary volumes.

2 The WAA integrates data from different sources into a consolidated information set making it possible to link physical data on water to economic data, such as those in Australia's National Accounts.

ENVIRONMENTAL ACCOUNTING FRAMEWORK

3 The WAA was developed using the SEEA and the SEEA–Water. SEEA was first published by the United Nations in 1993 and was elevated to an international statistical standard in 2012. Environmental accounts extend the boundaries of the System of National Accounts (SNA) framework to include environmental resources, which occur outside the economic production and asset boundaries measured by the SNA.

RELATIONSHIP BETWEEN THE WATER ACCOUNT AUSTRALIA AND NATIONAL ACCOUNTS

4 Water supply and use tables provide a framework to link core components of the National Accounts to physical information. Physical data are presented in supply and use tables while some linkages to economic data are also made.

PHYSICAL SUPPLY AND USE

5 The physical water supply and use tables present aggregates of all available physical data (megalitres) in terms of the supply and use of water within the Australian economy for the financial year 2014-15. The tables illustrate the economic use of water and include: self–extracted, distributed, regulated discharge (including in–stream use) and reuse (see Glossary for definitions of these terms).

Scope

6 WAA presents information on the supply and use of water in the entire Australian economy in both physical and monetary terms.

7 WAA includes the entire geographical area of Australia.

8 The scope of WAA is fresh (or inland) water only. The use of saline water (including water from estuaries) for power generation and other industrial uses, although measurable and reported, is not included in the supply and use tables (with the exception of sea water used for desalination in industry).

Coverage

9 Coverage for both supply and use tables include the following:

• individuals and companies that directly extract water from surface water and groundwater sources for their own use (e.g. domestic, industrial, agricultural or other uses);
• households, government and businesses that use water supplied by water providers for domestic, industrial, agricultural or other uses;
• water providers that extract water from surface water, groundwater and sea water for desalination, and supply it to customers for use (e.g. domestic, industrial, or other use);
• water providers that provide reuse water to their customers; other large organisations which treat water and make it available for subsequent reuse;
• other large organisations discharging water directly to the environment (e.g. power stations, mines); and
• major in–stream water users (e.g. aquaculture and hydro–electricity generation), where this information is available.

• the volume of rainwater used by agricultural crops/pastures that are directly rain fed;
• discharges to the environment resulting from the run–off of irrigation water;
• the reuse/recycling of water on–farm or on–site (i.e. within homes or businesses);
• non–point/diffuse discharges; and
• the impact of storm water infiltration into the sewerage reticulation system.

• Total water use is equal to the sum of distributed water use, self–extracted water use and reuse water use; and
• Water consumption is equal to total water use (defined above) less in–stream water use and distributed water supplied to other users. The use of distributed water by the environment (environmental flows), is not included in the measurement of total water consumption.

• 2014-15 Water Supply and Sewerage Services (WSSS) Survey;
• 2014-15 Energy, Water and Environment Survey (EWES);
• 2014-15 Rural Environment and Agricultural Commodities Survey (REACS); and
• 2008–09 Electricity Generators Survey (EGS).

20 State and Territory government agencies and major businesses (including major state/territory water corporations):

• The 2014-15 NSW Water Supply and Sewerage Benchmarking Report (NSW Office of Water); and
• Queensland Statewide Water Information Management (SWIM) under arrangements with the Queensland Water Directorate (QWD).

• 2014-15 National Performance Report - Urban Water Utilities (Commonwealth Bureau of Meteorology);
• Tasmanian Water and Sewerage: State of the Industry Report, 2014-15 (Office of the Tasmanian Economic Regulator); and
• Annual/environmental reports for the 2014-15 financial year from major water providers and businesses.

24 Water providers provided information on:

• Volume of water extracted from the environment and/or the volume of water received from other water providers (this information was used to reconcile total supplies and to avoid double counting of water volumes);
• Volumes of water supplied to particular industries (e.g. Agriculture, Mining and Manufacturing) and for household use. This information was reconciled with water use as reported by water users. It also enabled the calculation of coefficients (e.g. ML/employee) for industries for which there was little or no data on water use;
• The amount of water used by the water supply organisation (including mains flushing and water used on parks and gardens operated by councils that supplied water);
• Volume of water lost from the supply system (including customer meter errors and system water losses);
• Volume of water discharged by location;
• Volume of reuse water supplied to particular industries (e.g. Agriculture, Mining and Manufacturing) and for household use. Water reuse volumes were not imputed where water providers did not provide reuse water volumes;
• Distributed water supplied to households and the number of connections served by water supply and sewerage services. Where information was not available for distributed water supplied to households, neighbouring or matched Local Government Area (LGA) coefficients based on average megalitre use per connection were used; and
• The amount of water released for environmental flows. This only includes those environmental flows released in accordance with a specific plan prepared in conjunction and/or approved by the appropriate environmental (resource) regulator.

• Distributed water use is the amount supplied to the Agriculture industry by water providers;
• Total water consumption by Agriculture was sourced from the 2014-15 REACS. Generally, the amount of distributed and reuse water consumed (collected on the ABS 2014-15 WSSS) was subtracted from total water consumed with the remainder assumed to be self–extracted water. Note that self–extracted water for the Agriculture industry includes all groundwater that is extracted by agricultural businesses;
• Reuse water usage includes water used from regional reuse schemes;
• Data for Victoria were confronted against the Victorian Water Register (State Department of Environment and Primary Industries);
• The data presented in this publication are slightly different to the data presented in Water Use on Australian Farms, 2014-15 (cat. no. 4618. 0). This is because of multiple data sources used in the 2014-15 edition of WAA, compared to the single source of ABS survey data used to produce Water Use on Australian Farms, 2014-15. The main differences between the two publications is the total agricultural water consumption estimates for News South Wales, which are higher in the WAA, for the reasons described above. Similar differences have occurred in previous issues of WAA and Water Use on Australian Farms;
• The physical supply and use tables present an industry view of Agriculture. The Agriculture industry view presents only the agricultural activity that occurs in businesses where the primary income producing activity (i.e. the activity with value added that exceeds the value added of any other activity carried out by the same business) of the business is agricultural production. Businesses which undertake some agricultural activity but for which other activities provide most of the income are excluded from the Agriculture industry view. For example, a business which generates most of its income from transporting agricultural produce, but also grows some agricultural commodities, would be classified to the Transport, Postal and Warehousing industry. The agricultural production is still counted but is attributed to the Transport, Postal and Warehousing industry. As such, the industry view of Agriculture shows a lower level (approximately 10%) of water consumption than the agricultural activity view; and
• Note also that Water Use on Australian Farms, 2014-15 presents an activity view of agriculture – therefore its total consumption estimates for all states and territories are slightly different to the industry estimates presented in the physical water supply and use tables in the 2014-15 edition of WAA.

• Water use and consumption estimates (including in-stream water use and water discharges) for the Mining and Manufacturing industries were modelled based on information from the ABS 2014-15 EWES, information from company websites and annual/environmental reports.
• Mine dewatering is categorised as self–extracted in–stream (non–consumptive) use by the Mining industry. The water is usually used on–site or subsequently discharged to the environment.
• Only division level estimates are published at the State/Territory level (sub-division splits are presented at the National level) due to lack of survey input data for Mining and Manufacturing industries.

• Estimates of physical water used were modelled based on 2014-15 National Greenhouse Energy Reporting System (NGERS) data, ABS 2014-15 EWES data, ABSBR data, the 2008-09 ABS EGS of water use (a census of all energy producers with a greater than 10 megawatt capacity), and information from company websites and annual/environmental reports.

• Estimates of physical water use were sourced from information supplied by water providers in the ABS 2014-15 WSSS, 2014-15 EWES data, ABSBR data, as well as organisational websites and annual reports. Where information was not available, data was modelled using industry specific coefficients.

• Distributed and reuse water use represent the amount supplied to households by water providers (these data were sourced mainly from the ABS 2014-15 WSSS);
• Self–extracted water use by households not connected to mains water was calculated by applying average state 'volume (kL) per connection' coefficients to the households known not to be served by water providers (estimated by subtracting the connections served by water providers from the total number of households in each State and Territory). Note that self–extracted water use estimates for households do not include rainwater tank usage for households connected to mains supply; and
• Population estimates were sourced from Australian Demographic Statistics, Mar 2016 (cat. No. 3101.0).

• Water storage capacity and water use by households from rainwater tanks were sourced from the ABS publication Environmental Issues: Water Use and Conservation, March 2013 (cat. no. 4602.0.55.003), WAA, regional studies and modelled data;
• It was assumed the type of dwelling (number of bedrooms) was an indication of the size of rainwater tank the household required and could accommodate. Estimates for the number and size of dwellings are based on ABS Census of Population and Housing data and household estimates; and
• The estimates of household water consumption from rainwater tanks for 2014-15 are experimental and the ABS is seeking feedback on the methodology used. For further information on rain water tanks, please refer to the feature article published with the 2011-12 edition of the WAA – Experimental Estimates of Household Water Consumption From Rainwater Tanks.

• Soil water use estimates were derived from the ABS publications, Agricultural Commodities, Australia, 2014-15 (cat. no. 7121.0) and Land Management and Farming in Australia, 2014-15 (cat. no. 4627.0);
• Estimates were also derived using land use management data (Department of Agriculture & Water Resources) and Australian Forest and Wood Products Statistics (Australian Bureau of Agricultural and Resource Economics and Sciences);
• Soil water abstraction is calculated by dividing yield by a water use co-efficient then calculating total water abstracted from the area planted for agricultural commodities;
• The water use coefficient is usually measured in kg(mm x ha) for crops and in mm/year for other plants. These were constructed from an analysis of scientific case studies; and
• The estimates of soil water use for 2014-15 are experimental and feedback on the methods and sources used is sought by the ABS. For further information on soil water use, please refer to the feature article published with the 2011-12 edition of the WAA – Experimental Estimates of Soil Water Use in Australia.

• Planned (rules–based) environmental water relates to statutory requirements to maintain specific water regimes (e.g. particular levels, flow rates, aquifer pressures); and
• Held (entitlement–based) environmental water relates to specific entitlements, which accrue annual allocations of water that can be extracted (or left in–stream) for environmental purposes.

• Electricity and Gas Supply estimates were mostly modelled using administrative data from annual reports, websites and the NGERS;
• Other Industries were mostly modelled using administrative data from Annual reports and websites; and
• For households not connected to mains water, self–extracted water use was based on coefficients of water use (see paragraph 29).

• supply of distributed water and water related services in the economy by the following industries: Water Supply, Sewerage and Drainage Services, Mining, Manufacturing, Electricity and Gas Supply and Other Industries;
• expenditure on water and water related services by industries, households and governments; and
• value added to the economy by the major water–using industries.

• urban distributed water;
• rural distributed water; and
• bulk water (both urban and rural).

• Consumer Price Index (CPI) (cat. no. 6401.0)
• Australian Demographic Statistics (cat. no. 3101.0)
• Households and Family Projections (cat. no. 3236.0)
• Australian System of National Accounts (cat. no. 5204.0)
• Australian National Accounts: State Accounts (cat. no. 5220.0)
• National Accounts supply–use benchmarks (unpublished data)
• Housing Occupancy and Costs (cat. no. 4130.0)

• Annual/environmental reports for the 2014-15 for various water providers;
• State and Territory governments; and
• The Water Services Association of Australia (WSAA).

• These are compiled by the ABS for the water using industries and published in the Australian System of National Accounts (cat. no. 5204.0) and reproduced in this publication.

• Expenditure on distributed water was calculated by taking total volume and connected properties reported by each water provider, calculating average consumption values per household and applying the provider's fixed and variable tariff structures to these average values. Where tariff information is not available, an average water rate ($ per kL) was applied to the volume of water consumed by the households within those service areas.

• Monetary data for government expenditure and social transfers in kind were sourced from the Australian System of National Accounts as unpublished data.

• Revenue and expenditure on water and related services for the water supply industries were sourced from the ABS 2014-15 WSSS, supplemented by administrative data.
• Information on expenditure on water and related services by other industries was sourced from administrative data.

• Water intensity can be expressed as the amount of industrial output produced from a corresponding unit of water used in the production process. This is expressed in the monetary tables as industry gross value added ($ millions) per GL of water used. Comparisons between industries and changes over time in the average gross value added per GL of water use is complicated by the impact of prices, particularly for Agriculture and Mining, where commodity prices can vary substantially from year to year. This is relevant for analyses of incomes (current prices) generated per GL of water consumed in a given year. For this reason, the percentage change movements in industry gross value added per GL of water consumed from 2012–13 to 2013-14 have been calculated using chain volume measures of industry gross value added. It should also be noted that the data represent industry averages. Changes over time in the mix of commodities produced by a broad level industry such as Agriculture, Mining or Manufacturing could result in significant changes in the water intensity.

• 2014-15 National Performance Report - Urban Water Utilities (Commonwealth Bureau of Meteorology)
• National Water Account 2014 (Commonwealth Bureau of Meteorology)
• 2014-15 NSW Water Supply and Sewerage Benchmarking Report (NSW Office of Water)
• Statewide Water Information Management (SWIM) (Queensland Water Directorate)
• Victorian Water Register (State Department of Environment and Primary Industries)
• Tasmanian Water and Sewerage: State of the Industry Report, 2014-15 (Office of the Tasmanian Economic Regulator)
• data for Western Australia collected through the WA Department of Water, the Economic Regulatory Authority and major water corporations
• Australian Forest and Wood Products Statistics (Australian Bureau of Agricultural and Resource Economics and Sciences)