This bill is currently before Parliament.
Climate, energy & environment
Murray–Darling Basin communities would get an inquiry into how Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. is managed and what results it delivers.
The bill’s sponsor said the Murray–Darling Basin produces around $30 billion in farm output each year. It supplies more than one-third of Australia’s food and supports more than 8,000 irrigated farming businesses. She said the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes., the body managing Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems., controls more than 2,000 gigalitres. The inquiry was proposed because Basin communities wanted clearer evidence about environmental results, local impacts and how water decisions are made.
Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. has been managed by the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes. since the Water Act 2007, within a Murray–Darling Basin system shared across jurisdictions and tied to ecosystems, farms and regional economies. A 2019 ACCC inquiry into Basin water markets documented the CEWH’s statutory role, while longstanding questions about its performance, transparency and watering outcomes led Alison Penfold MP to propose an independent parliamentary commission of inquiryAn independent investigation that gathers evidence and reports its findings. on 25 May 2026, with Royal Commission-equivalent powers to test evidence and report to Parliament within 12 months.
The evidence pack does not contain an opposing speech, so criticism of the bill itself cannot be established. The available speech instead argues that several reviews are already underway and acknowledges that Basin communities may be tired of reviews.
Alison Penfold MP introduced this bill. Supportive speeches so far have come from Nationals.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
74 days
Updated 07 Aug 2026.
Meaning
Murray–Darling Basin communities would get an inquiry into how Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. is managed and what results it delivers.
Farmers, regional communities and First Nations peoples would have environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems.’s effects on their lives, economies and culture examined.
The Senate would appoint two commissioners. One must be a former judge, while the other must be a Basin resident with farming experience.
Witnesses could be ordered to give evidence or produce documents. Police could arrest someone who ignores an order to attend.
Police could search for and seize relevant evidence under a warrant if the commission believed it might be hidden, damaged or destroyed.
People appearing before the inquiry could have a lawyer. Hearings would usually be public, but the commission could close them when needed.
The public would get the commission’s findings and recommendations through Parliament. Its report would be due within 12 months unless the Senate allowed longer.
3 Simplified outline of this Act This Act establishes the Commonwealth Environmental Water Holder Commission of Inquiry to inquire into and report to the Parliament on the management, use, performance and outcomes of Commonwealth environmental water holdings, with particular focus on the role, functions and conduct of the Commonwealth Environmental Water Holder. The Commission will examine the effectiveness, efficiency and transparency of environmental watering, including whether environmental water is achieving intended ecological outcomes and how its use impacts regional communities, agricCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
(2) In meeting its objective, the Commission must examine, consider and report on the following matters: (a) the adequacy, effectiveness and efficiency of the provisions of the Water Act 2007 which restrict the use of environmental water holdings for other uses; (b) the role, functions and performance of Commonwealth agencies, including: (i) the Commonwealth Environmental Water Holder; and (ii) the Murray‑Darling Basin Authority; and (iii) the Department administered by the Minister responsible in administering, enforcing and overseeing environmental watering; (c) any actual or potentialCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
6 Establishment of Commission The Commonwealth Environmental Water Holder Commission of Inquiry is established by this section. 7 Appointments (1) The Commission is constituted by two members appointed for this subsection by a resolution of the Senate. (2) One of the members must be a former judge and the other must be someone with farming experience normally resident within the Murray‑Darling Basin.Commonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
13 Power to summon witnesses and take evidence (1) The member may, by a written summons signed by the member and served on a person, summon the person to attend a hearing at a time and place specified in the summons: (a) to give evidence; or (b) to produce documents or things specified in the summons. (2) At a hearing, the member may: (a) require a witness either to take an oath or to make an affirmation; and (b) administer the oath or affirmation to the witness. (3) At a hearing, the following persons may, so far as the Commission thinks appropriate, examine or cross‑examine any witnesCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
15 Search warrants (1) The Commission may issue a search warrant if: (a) the Commission has reasonable grounds for suspecting that there may be relevant material, at that time or within the next 24 hours, upon any land or upon or in any premises, vessel, aircraft or vehicle; and (b) the Commission believes on reasonable grounds that, if a summons were issued for the production of the material, it might be concealed, lost, mutilated or destroyed. (2) A search warrant authorises a member of the Australian Federal Police or of the Police Force of a State or Territory, in accordance with its tCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
(1) For the purposes of its inquiry the Commission may hold hearings at places in Australia determined by the Commission. (2) A hearing is to be public, unless the Commission thinks the circumstances in particular instances require otherwise. (3) The member must preside at a hearing before the Commission. (4) A person who appears before the Commission, or who is or is likely to be affected by evidence given before the Commission, may be represented by a legal practitioner. (5) If a hearing is to be conducted in private, the only persons who may be present are persons authorised by the CommCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
10 Report to the Parliament (1) The Commission must give the President and the Speaker a report on its inquiry that contains: (a) its findings of fact and its conclusions; and (b) any recommendations relevant to the inquiry that the Commission thinks fit. (2) The report must be submitted on or before the end of the period of 12 months starting on the commencement of this section, unless that period is extended by a resolution of the Senate. (3) The Commission must give with its report a record of so much of the evidence before the Commission as the Commission thinks necessary to substantiCommonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) introduced text
Context
Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. has been managed by the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes. since the Water Act 2007, within a Murray–Darling Basin system shared across jurisdictions and tied to ecosystems, farms and regional economies. A 2019 ACCC inquiry into Basin water markets documented the CEWH’s statutory role, while longstanding questions about its performance, transparency and watering outcomes led Alison Penfold MP to propose an independent parliamentary commission of inquiryAn independent investigation that gathers evidence and reports its findings. on 25 May 2026, with Royal Commission-equivalent powers to test evidence and report to Parliament within 12 months.
The Water Act establishes the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes.
Part 6 of the Water Act 2007 established the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes. to manage Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. holdings.
ACCC ↗The CEWH explains its role in the ACCC water-market inquiry
The CEWH set out how its statutory role under the Water Act 2007 interacted with water markets in the Murray–Darling Basin.
ACCC ↗Alison Penfold MP introduces the commission of inquiryAn independent investigation that gathers evidence and reports its findings. bill
The private member’s bill proposed an independent parliamentary inquiry into the CEWH’s management, performance and environmental watering outcomes.
Parliamentary timeline ↗The proposed inquiry receives Royal Commission-equivalent powers
The bill proposed powers to compel witnesses and documents, take sworn evidence and report findings and recommendations to Parliament within 12 months.
Commonwealth Environmental Water Holder Commission of Inquiry Bill 2026 (No. 2) explanatory memorandum ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The evidence pack does not contain an opposing speech, so criticism of the bill itself cannot be established. The available speech instead argues that several reviews are already underway and acknowledges that Basin communities may be tired of reviews.
The sponsor said this inquiry would differ because it would focus on the Commonwealth Environmental Water HolderThe body that manages water held by the Commonwealth for environmental purposes. and community trust in its work.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Alison Penfold supports the bill because it would establish an independent inquiry into how Commonwealth environmental waterWater kept or delivered to support rivers, wetlands and other ecosystems. is managed, including its environmental results and effects on farming and basin communities.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“That is why I am bringing forward this bill and why I urge this parliament to support it.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
