Water Account, Australia methodology

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Reference period
2018-19 financial year
Released
18/11/2020

The Water Account, Australia (WAA) is an environmental-economic account 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) and the SEEA Water frameworks. It consists of supply and use tables for both physical volumes and monetary values.

The following section outlines the broad concepts, sources, and methods for the Water Account. 

Concepts

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

Water supply and use tables describe water flows from the environment to the economy, within the economy, and from the economy to the environment (SEEA Water, 2012, S. 3.1). This includes:

  • Extraction of water from the environment by economic units (e.g., surface water and ground water extraction, as well as desalination plants);
  • Flows of water within the economy (e.g., supply and use of distributed and recycled water) and;
  • Final discharges of water from economic units back into the environment (return flows).

The monetary supply and use section presents aggregates of monetary data (dollars) in terms of the supply and use of water within the Australian economy. Supply and use tables illustrate the economic transactions associated with the use of distributed and reuse water and the provision of sewerage, drainage and wastewater services.

Key concepts are listed below:

Extraction of Water (Self-extracted water)

Refers to the movement of water from the environment into the economy, either permanently or temporarily. SEEA identifies the environment as the supplier and the industry/household as the user (SEEA Water, S 3.6). Extracted water can be further classified into three main sources:

  • Surface Water: water on the surface of continents such as in a river, lake, or wetland.
  • Groundwater: water found underground in the cracks and spaces in soil, sand and rock. It is stored in and moves slowly through geologic formations of soil, sand and rocks called aquifers.
  • Seawater for Desalination: saline water that is extracted from the ocean or marine estuaries with the express purpose of creating usable water.
     

Distributed Water

Refers to water flows from one user (or supplier) to another user after extraction. This includes the supply and use of potable and non-potable water from one economic unit to another (SEEA Water, 2012 S 3.31). In the WAA, distribution losses are recorded as use by the industry supplying the water.

Bulk Water

Water supplied to another water supplier. This distinction is required to ensure the same volume of water is not counted twice as the water moves through the economy; however, these exchanges are valued in the monetary tables.

Wastewater

Represents water that has been used by an economic unit or household, and then transferred between economic units. The industry collecting wastewater is a “user” in the physical supply and use tables, while in the monetary tables that industry is a “supplier” of sewerage and wastewater services (SEEA Water S 3.9). The most commonly understood form of wastewater is sewage; however, non-sewage wastewater products are also included (SEEA Water, 2012, S 3.12). Stormwater and drainage water are not currently included in the Supply and Use tables, as much of this is simply redirected into nearby water systems.

Reuse Water

Represents the transformation of wastewater into another economic product that is distributed throughout the economy (SEEA Water, 2012, S 3.12).

Return Flows

Represents the flows of water from industries and households to the environment. This excludes flows of water to wastewater treatment facilities but includes flows of water from treatment facilities directly to the environment. The SEEA records return flows as use by the environment (SEEA Water, 2012, S 3.15).

Consumption

The concept of water consumption provides an indication of the amount of water that is lost by the economy during use, in the sense that the water has entered the economy but has not returned to the environment. Water is instead incorporated into products, evaporated, transpired by plants or simply consumed by households or livestock. The difference between water use and water supply is referred to as water consumption. The concept of water consumption used in SEEA-Water is consistent with the hydrological concept. It differs, however, from the concept of consumption that is used in the national accounts, which instead refers to water use (SEEA water, 2012, S 3.44).

Industry Classification

The WAA uses The Australian and New Zealand Standard Industrial Classification (ANZSIC) for its industry classification. The ANZSIC is implemented for all ABS industry-classified statistics and is a fundamentally important reference for organisations wishing to interpret these statistics or to compile their own statistics on a comparable basis.

Households’ expenditure

In the monetary account, this refers to final consumption expenditure by households, or expenditure incurred by resident households on the consumption of water and related services (including sewerage services). 

Social Benefits Paid in Kind

Social Benefits Paid in Kind consist of goods and services provided to households by government and private, non-market producers (NPISHs), either free or at prices that are not economically significant (SNA, 2008, S 8.141). 

Taxes

Compulsory, unrequited payments, in cash or in kind, made by institutional units to government units (SNA, 2008, S 7.71). 

Subsidies

Current unrequited payments that government units, including non-resident government units, make to enterprises on the basis of the levels of their production activities or quantities or values of the goods or services that they produce (SNA, 2008, S 7.98). 

Exports

Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (SNA 1993, S 14.88).

Imports

Imports of goods and services consist of sales, barter, or gifts or grants, of goods and services from non-residents to residents (SNA 1993, S 14.88).

Data Sources

Water Supply and Sewerage Services (WSSS) collection

Description:  the WSSS collection is an ABS census of all known water suppliers/utilities across Australia. It collects physical and monetary data on water supply, water treatment, and return flows of water to the environment.

Frequency:  annual, financial year.

Series used:  2014-15 to 2018-19 inclusive.

Geography: state/territory and national.

Key data used:

To set Water Supply and Sewerage Services industry estimates for:

  • self-extracted water
  • water supply to industries and households
  • return flows
  • monetary supply

The WSSS is used as a control total for use of distributed and reuse water by industries.

It also sets the unit price for agriculture water use.

Energy, Water and Environment Survey (EWES) and Environmental Indicators Survey (EIS)

Description: the EWES is an ABS survey conducted every three years, with the EIS conducted in the intervening two years. The EWES provides a more comprehensive range of data across industries, as well as providing benchmark estimates for selected data items. The EWES has a larger sample size than the EIS, therefore, some businesses/organisations selected for the EWES may not be selected for the EIS.

Frequency: triennial EWES and EIS with a financial year reference period.

Series used: 2014-15 and 2017-18 for EWES; 2015-16, 2016-17, and 2018-19 for EIS.

Geography: state/territory and national (EWES); national only (EIS).

Key data used:

Self-extracted use, distributed supply, reuse supply, and return flows data for the following industries:

  • Mining
  • Manufacturing
  • Waste Collection, Treatment and Disposal Services
  • Electricity and Gas Supply

Used to disaggregate division level use data from the WSSS collection.

Monetary distributed, reuse and sewerage and wastewater services use for the following industries:

  • Mining
  • Manufacturing
  • Electricity and Gas Supply
  • Waste Collection, Treatment and Disposal Services
  • Other industries

Rural Environment and Agricultural Commodities Survey (REACS)/Agricultural Census

Description:  the REACS is run annually by the ABS in between the five-yearly Agricultural Census. The scope of the REACS and Agricultural Census collection is all businesses operating agricultural land in Australia who have an Estimated Value of Agricultural Operations (EVAO) of $40,000 or greater.

Frequency: REACS is run annually in the years between the five yearly Agricultural Census. The last Agricultural Census reference period was 2015-16.

Series used: 2014-15, 2016-17, 2017-18 , and 2018-19 for REACS, 2015-16 for Agricultural Census.

Geography: state/territory and national

Key data used:

  • Agriculture self-extracted water use;
  • Used to disaggregate division level use data from the WSSS collection;
  • Unit for volume measures to compute GVIAP.

Note:  The agricultural water use data presented in this publication is different to the data presented in Water Use on Australian Farms. This is because of: (a) the multiple data sources used for the WAA compilation, compared to the single source of ABS survey data used to produce Water Use on Australian Farms; and (b) the Water Use on Australian Farms publication presents an ‘activity view’ of agriculture – therefore, its estimates of water use are slightly different to the ‘industry view’ estimates presented in the physical water supply and use tables in WAA.

The Agriculture ‘industry view’ presented in WAA includes only 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.

Also note that losses from the distribution system for agriculture (e.g. evaporation and seepage from irrigation channels) are attributed to the Water Supply industry rather than the Agriculture industry in WAA.

Australian National Accounts: Australian National Accounts: State Accounts

Description: contains state and territory estimates of gross domestic product (referred to as gross state product) and its components.

Frequency: annual.

Series used: Industry Gross Value Added: Chain volume measures, Industry Gross Value Added 2014-15 to 2018-19.

Geography: state/territory.

Key data used:

Used to create state/territory indexes to move EWES data forward and backwards; provides Industry Gross Value Added estimates for the summary tables.

National Performance Report – Bureau of Meteorology

Description: the Bureau of Meteorology’s Urban National Performance Reports benchmark the pricing and service quality of Australian urban water utilities. Indicators include water resource supply and usage, financial operations, bills and pricing, assets, water quality compliance and customer performance. The reports are published annually and prepared independently by the Bureau of Meteorology, State and Territory governments, and the Water Services Association of Australia; the reports support commitments under the National Water Initiative.

Frequency: annual

Series used: 2014-15 to 2018-19

Geography: business unit record level

Key data used: estimation of household price of water

Summary Indicators

In addition to the data that feeds into the supply and use data section, the summary tables include data to assist users in contextualising the presented information. The sources for these data items are noted below.

Australian Demographic Statistics

Description: this quarterly release contains the most recent estimates of the resident population (ERP) of Australia and the states and territories based on the results of the 2016 Census of Population and Housing held on 9 August 2016, and the addition of quarterly components of population growth. The ABS has used the 2016 Census to produce final rebased estimates of the resident population. This release contains the latest available statistics on births, deaths (including infant deaths) and overseas and interstate migration.

Frequency: quarterly

Series used: June 2015 to June 2019

Geography: state/territory and national

Key data used: estimated residential population as of end of financial year

Household and Family Projections, Australia

Description: the latest household estimates and projections in this publication cover the period 2016 to 2041 for Australia, the states and territories, capital cities and rest of state/territory regions. The projections of households, families and persons by living arrangement are based on Series I, which assumes no change in 2016 living arrangement propensity.

Frequency: every 5 years with annual estimates

Series used: 2016 to 2041 publication for 2015-16 to 2018-19; 2011 to 2036 publication for 2014-15. 

Geography: state/territory and national

Key data used: estimate of household numbers

Bureau of Meteorology, Climate change – trends and extremes

Description: provides climate indicators available for Australia, states and territories as well as other geographies.

Frequency: monthly

Series used: financial years - 2014-15 to 2018-19  

Geography: state/territory and national

Key data used: area-averaged rainfall by state/territory and national

Bureau of Meteorology, Water Storage Dashboard

Description: a dashboard featuring information on 305 major water storages around Australia

Frequency: daily

Series used: 30 June 2015 to 30 June 2019

Geography: state/territory and national

Key data used: estimates of accessible volume in major dam storages as at end of financial year

Value of Agricultural Commodities Produced (VACP), Australia

Description:  the VACP is run annually by the ABS. It applies a unit price to the agricultural commodity volume estimates produced by REACS to produce a valuation of all produced agricultural commodities. 

Frequency: VACP is run annually.

Series used: 2014-15 to 2018-19

Geography: state/territory and national

Key data used:

  • State based unit prices for agricultural commodities. 

Methods

The methods used to compile the data in the water account have been split into four broad groups that align with the data cubes published in this account:

  1. Physical Supply and Use;
  2. Monetary Supply and Use;
  3. Summary Table;
  4. Gross Value of Irrigated Agricultural Production.

All data items in the WSSS Industry Highlights data cube were sourced directly from the WSSS Collection with no notable methodological adjustments.  

Methods - Physical Supply and Use of Water

Methods - Monetary Supply and Use of Water

Methods - Summary Table

Methods - Gross Value of Irrigated Agricultural Production

Glossary

ANZSIC

The Australian and New Zealand Standard Industrial Classification (ANZSIC) is the standard of classification used in Australia and New Zealand for the collection, compilation, and publication of statistics by industry.

Aquifer

A geologic formation which is capable of holding water and through which water can percolate. Aquifers are capable of yielding quantities of groundwater for economic activities.

Bulk water

Water supplied by a water provider/supplier/utility to another water provider/supplier/utility.

Catchment

The area of land determined by topographic features, within which rainfall will contribute to run-off at a particular point. The catchment for a major river and its tributaries is usually referred to as a river basin.

Current Prices

Estimates are valued at the prices of the period to which the observation relates. For example, estimates for 2017-18 are valued using 2017-18 prices. This contrasts to chain volume measures where the prices used in valuation refer to the prices of the previous year.

Chain Volume Measures

Annually-reweighted chain Laspeyres volume indexes referenced to the current price values in a chosen reference year (i.e. the year when the quarterly chain volume measures sum to the current price annual values). Chain Laspeyres volume measures are compiled by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year.

Distributed water

Water supplied to a user including through a natural (e.g. river) or non-natural network (e.g. piped or open channel), and where an economic transaction has occurred for the exchange of this water. The majority of distributed water is supplied by the Water Supply, Sewerage and Drainage Services industry (ANZSIC Division 28). The water supply component consists of units mainly engaged in storage, purification or distribution of water by pipeline or carrier. It may also include the operation of irrigation systems that supply water to a farm and the supply of steam and hot water. Distributed water can include potable, mains and raw water but does not include reuse or bulk water.

Exports

Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents.

Gigalitre (GL)

One thousand million litres.

Gross Value

The gross value of commodities produced. It is the value placed on recorded production at the wholesale prices realised in the market place.

Gross water supply

Water supplied to other water providers and customers, plus losses, own use by water providers and environmental flows.

Groundwater

Water found underground in the cracks and spaces in soil, sand and rock. It is stored in and moves slowly through geologic formations of soil, sand and rocks called aquifers.

Industry Gross Value Added (IGVA)

The value of an industry's output at basic prices, minus the value of goods and services consumed as inputs during the process of production. Basic prices valuation of output removes the distortion caused by variations in commodity taxes and subsidies across the output of individual industries.

Imports

Imports of goods and services consist of sales, barter, or gifts or grants, of goods and services from non-residents to residents.

Irrigation water

Water artificially applied to soils (i.e. does not include precipitation/rainfall).

Kilolitre (kL)

One thousand litres.

Megalitre (ML)

One million litres.

Other industries

In the physical water supply and use tables, Other Industries refers to the following list of industries, according to the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • Construction 
  • Wholesale Trade 
  • Retail Trade 
  • Accommodation and Food Services 
  • Transport, Postal and Warehousing 
  • Information Media and Telecommunications 
  • Financial and Insurance Services 
  • Rental, Hiring and Real Estate Services 
  • Professional, Scientific and Technical Services 
  • Administrative and Support Services 
  • Public Administration and Safety 
  • Education and Training 
  • Health care and Social Assistance 
  • Arts and Recreation Services 
  • Other Services.

Other water provider

An organisation that supplies water but whose main activity is in an industry other than the Water Supply, Sewerage and Drainage Services Industry (e.g. Mining or Manufacturing).

Potable water

Water that is suitable for human consumption (e.g. drinking water).

Purchasers’ price

The amount paid by the purchaser, excluding any tax deductible by the purchaser, in order to take delivery of a unit of a good or service at the time and place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place.

Raw water

Water extracted from the environment that has not been treated.

Retail water

Potable or non-potable water supplied by a water supplier to customers not classified as water suppliers.

Return Flows

Return flows represent the flows of water from industries and households to the environment. This excludes flows of water from industries and households to wastewater treatment facilities but includes flows of water from treatment facilities directly to the environment. The SEEA records this as use by the environment.

Reuse water

Reuse water represents the transformation of wastewater, storm water or drainage water into another economic product that is distributed throughout the economy. Typically, but not always, reuse water is non-potable.

Revenue - Sewerage and Wastewater services

Revenue from 'pay for use' and base rate charges (i.e. volumetric and fixed rates) for the provision of waste water. It also includes revenue generated from trade waste charges.

Revenue - Water supply

Revenue from for the provision of water supply services to residential and non-residential properties. Also includes revenue generated from bulk supply or bulk sale of potable and non-potable/raw water, treated waste water or recycled (reuse) water and desalinated water.

Seawater for Desalination

A process where salt is removed from water with a high salt content (usually seawater but sometimes other brackish water) to make it suitable for domestic or industrial use.

Self-extracted water

Water extracted directly from the environment for use (including surface water, groundwater and other bodies) for the purpose of supplying to others (including other water suppliers) and/or for own use. It also includes water produced from salt water desalination.

Sewerage

Infrastructure (e.g. pipe and drains) used to remove sewage (waste water).

Social benefits paid in kind

Social transfers in kind consist of good and services provided to households by government and private, non-market producers free or at prices that are not economically significant.

Subsidies

Current unrequited payments that government units, including non-resident government units, make to enterprises based on the levels of their production activities or quantities or values of the goods or services that they produce.

Supply Use Framework

Physical water supply and use tables which provide information on the volumes of water extracted, supplied within the economy and discharged back into the environment by economic activity and households.

Surface water

Water on the surface of continents such as in a river, lake, wetland, ice or snow. This excludes sea water.

System of Environmental-Economic Accounting (SEEA)

A framework used to develop environmental accounts by integrating environmental information into an accounting framework. The primary manual is the SEEA Central Framework (SEEA-CF) which provides the conceptual basis for describing the interrelationship between the natural environment and the economy.

System for Environmental-Economic Accounting - Water (SEEA-Water)

An elaboration of the SEEA framework which provides a conceptual framework for organising hydrological and economic information in a coherent and consistent framework. It is consistent with SEEA-CF.

System of National Accounts (SNA)

An international framework which can be used to develop a comprehensive, consistent and flexible set of macro-economic accounts. The latest edition is the 2008 SNA.

Taxes

Compulsory, unrequited payments, in cash or in kind, made by institutional units to government units.

Wastewater

Any water that has been used and cannot be used again without treatment, for example untreated effluent, sewage water and trade waste.

Water consumption

The concept of water consumption gives an indication of the amount of water that is lost by the economy during use, in the sense that the water has entered the economy but has not returned to the environment directly. Water is instead incorporated into products, evaporated, transpired by plants or simply consumed by households or livestock. The difference between the water use and the water supply is referred to as water consumption. The concept of water consumption that is used in SEEA-Water is consistent with the hydrological concept. It differs, however, from the concept of consumption that is used in the national accounts, which instead refer to water use.

Water intensity and productivity

Water intensity is referred to as the ratio of physical flow to an economic aggregate while water productivity represents the ratio of economic aggregate to physical flow. Water intensity is the inverse of water productivity.

Water losses

Water that enters the water distribution system of a water provider but does not reach the end users/customers. Water losses can be attributed to seepage, leakage, evaporation (excluding evaporation from water storages), meter inaccuracies and theft.

Water provider

A business or organisation that provides a reticulated water supply, irrigation water, reuse/recycle water and/or bulk water supply service. Water providers may be government or private and often operate water storage, purification and supply services. They may also provide sewerage or drainage services.

Water supply services

The provision of reticulated water supply (including desalinated water), irrigation water, recycled (reuse) water, bulk and/or retail water supply service.

Water use

Distributed water use plus self-extracted water use plus reuse water use. Note that this definition differs to the Water consumption definition in that it is a gross measure, rather than netting out the volumes of water in return flows, wastewater supply or water supplied to other users.

Abbreviations

$dollar
$mmillion dollars
%percent
ABSAustralian Bureau of Statistics 
ACTAustralian Capital Territory 
ANZSICAustralian and New Zealand Standard Industrial Classification (2006 edition)
ASGSAustralian Statistical Geography Standard
Aust.Australia
BoMBureau of Meteorology (Commonwealth)
cat.catalogue
EISEnvironmental Indicators Survey
EVAOEstimated Value of Agricultural Operations
EWESEnergy, Water and Environment Survey 
GLgigalitre
GVGross Value
GVAGross Value added
GVIAPGross Value of Irrigated Agricultural Production
IGVAIndustry Gross Value Added
kLkilolitre 
MLmegalitre
mmmillimetre
nanot available
no.number
npnot available for publication
NSW New South Wales
NTNorthern Territory
QldQueensland
REACS Rural Environment and Agricultural Commodities Survey 
SASouth Australia
SEEASystem of Environmental Economic Accounting 
SEEA Water System of Environmental Economic Accounting for Water
SNASystem of National Accounts 
Tas.Tasmania
UNUnited Nations
VACPValue of Agricultural Commodities Produced
Vic.Victoria
WAWestern Australia
WAAWater Account, Australia
WSSSWater Supply and Sewerage Services Survey
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