Integrated hydrologic–economic modelling for analyzing water acquisition strategies in the Murray River Basin

We describe a coupled hydrologic–economic spreadsheet model for the Murray-Darling Basin that allows analyses of water allocation and use by different sectors including agriculture and environment under alternative policy scenarios. The model is a simple, lumped optimisation model which includes partitioning of rainfall into runoff and evapotranspiration, a reach by reach water balance of the river system, irrigation demand and revenue generation. Groundwater is not considered because groundwater use is a small part of the overall water use. The model is used to optimize profit, diversions and flows subject to hydrological and economic constraints determined by the policy scenario.