Most Australians know all too well how precious water is. Sydney just experienced a severe drought, while towns across New South Wales and Queensland ran out of drinking water. Under climate change, the situation will become more dire, and more common. It wasn’t meant to be this way. In 2004, federal, state and territory governments signed up to the National Water Initiative. It was meant to secure Australia’s water supplies through better governance and plans for sustainable use across industry, environment and the community. But a report by the Productivity Commission released today says the policy must be updated. It found the National Water Initiative is not fit for the challenges of climate change, a growing population and our changing perceptions of how we value water.