On 20 August 2009 the Senate instructed the Standing Committee on Environment and Communications to inquire and report on the ability of the Commonwealth, across state borders, to sustainably manage water resources in the national interest, with particular reference to:

a) the issuing, and sustainability of water licences under any government draft resource plans and water resource plans;

b) the effect of relevant agreements and Commonwealth environmental legislation on the issuing of water licences, trading rights or further extraction of water from river systems;

c) the collection, collation and analysis and dissemination of information about Australia's water resources, and the use of such information in the granting of water rights;

d) the issuing of water rights by the states in light of Commonwealth purchases of water rights; and

e) any other related matters.

The Murray-Darling Basin Plan must be based on the best available science, and a precautionary approach is needed, according to this Senate committee report.