Media Release: Regional Backlash Grows Against Labor’s “Inundation Bill”

REGIONAL BACKLASH GROWS AGAINST LABOR’S “INUNDATION BILL”

The Minns Labor Government faces backlash from across regional New South Wales over its controversial Water Management Amendment (Easements for Inundation) Bill 2026, with Liberal, National and Independent MPs uniting in opposition to the legislation.

Member for Albury Justin Clancy said regional communities did not see the legislation as “minor” or “administrative”, as described by the Government.

“Healthy rivers matter, but so do healthy regional economies and functioning communities,” Mr Clancy said.

“This Bill fundamentally changes the relationship between government agencies and private landholders by creating permanent inundation easements over productive land while simultaneously reducing accountability when things go wrong.”

Member for Albury Justin Clancy said the Bill represented another example of city-based decision-making being imposed on Basin communities without properly listening to the people expected to live with the consequences.

The legislation would create a framework for permanent inundation easements allowing government water authorities to legally inundate private land for environmental watering purposes, while also removing compensation liability for inundation damage caused by WaterNSW actions.

Mr Clancy said the Minns Labor Government was further eroding trust in water policy at exactly the wrong time.

“Instead of rebuilding confidence, Labor is pushing ahead with legislation that expands government powers over private land while reducing protections for landholders.”

“This is why there is such broad concern across the political spectrum, Liberal, National and Independent MPs are all hearing the same thing from Basin communities.”

Shadow Minister for Water Steph Cooke said the Bill entrenched “a rigid and unfair approach to environmental water delivery that locks landholders into permanent impacts without genuine choice.”

“What is most alarming is the Government’s refusal to genuinely consider deed-of-release arrangements, despite repeatedly acknowledging landholder concerns,” Ms Cooke said.

Mr Clancy said a more balanced deed-of-release model had been proposed that would still allow environmental watering outcomes while maintaining flexibility and stronger protections for landholders.

“A deed-of-release approach would provide operational certainty without permanently encumbering land title or locking communities into rigid arrangements while Basin settings continue to evolve,” he said.

Mr Clancy said the Government’s decision to remove compensation liability for inundation damage was particularly alarming.

“Farmers are being asked to accept permanent legal encumbrances on their land while simultaneously losing long-standing avenues of recourse where inundation causes damage to crops, infrastructure or productive land,” he said.

“That is an extraordinary overreach, and regional communities see it for what it is.”

Shadow Minister for Agriculture Brendan Moylan said the Bill would have serious implications for Basin communities.

“Farmers are being asked to accept permanent easements that affect land value, borrowing capacity and long-term succession planning, all while being told they have no real alternative,” Mr Moylan said.

Mr Clancy said there was still resilience and optimism across Basin communities, but governments needed to work with regional NSW rather than dictate outcomes to it.

“Increasingly, communities are telling us they want a shift away from rigid recovery models toward practical water management based on outcomes,” he said.

“The future of Basin reform depends on transparency, accountability and genuine partnership, not more top-down decision-making from a Labor Government that continues to lose the confidence of regional communities.”