Water banking: insurance against drought

The next drought is coming.

The challenge for Australia 
is that climate is expected to 
become more extreme. But we 
have solutions to prepare us.

Australia generally has a hot and dry 
climate and is prone to droughts. 
These droughts are projected to be 
more severe and frequent in the future.

What is water banking?

Storing water underground 
in natural reservoirs.

Also known as managed aquifer recharge

Excess water is stored when available 
for future use during drought. 
Sourced from rain water or via 
recycled wastewater.

Why bank water?

Communities and industries, like agriculture, 
need greater water security. 

Water can be stored long-term for 
drought supply.

Avoid expensive and timely water cartage 
when regular water sources dry up. 

Manage water storage safely to reduce 
impacts to the environment. 

Opportunities in Australia

Water banking is 
suitable in a range of 
geographical settings.

For example, 
we identified 4km³ 
of potential storage 
opportunities in the 
Murray-Darling Basin.2 

How much does it cost?

Our recent study shows it can 
be cost-effective, with variation 
depending on the system applied.

$0.05/kl

Cheapest

$0.48/kL

Most expensive

Indicative costs for different systems

We have modelled a range of scenarios 
to bank surface water and the costs 
involved. Average costs are based on 
2-3 different scenarios.1

Recharge release 

$0.06/kL Levelised cost

Low Capex

Low Opex

14% Opex/Capex 

Infiltration basin

$0.10/kL Levelised cost

Med Capex

Low Opex

4% Opex/Capex

Recharge weir

$0.20/kL Levelised cost

Med Capex

Low Opex

4% Opex/Capex

Well injection 

$0.30/kL Levelised cost

High Capex

High Opex

4% Opex/Capex

Our R&D focus

• We look at how best to store 
water underground.
• Understanding and mitigating 
risks so water is safe for 
people and the environment. 
• Tailored solution to the need 
and location.
• Securing demonstration sites.


Engage with us to explore water banking

Our Drought Resilience Mission is strengthening regional resilience by demonstrating new ways to improve water security. 

research.csiro.au/mar

1. Vanderzalm et al 2022

2. Gonzalez et al 2020