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Water in the River Murray system is shared between New South Wales, Victoria and South Australia.

The Murray–Darling Basin has a highly variable climate, with conditions differing each year and across regions. Planning for wet and dry conditions is a major challenge for river operators, water resource managers and the community.

Hydrological conditions often differ each year and across regions of the Basin. Planning for dry conditions is a major challenge for river operators, water resource managers and the community.

Water across the southern-connected Basin is managed. This means flows in the River Murray are controlled to some extent to ensure water is stored and delivered when and where it’s needed. The term used to describe the management of water in this way is 'regulated'.

When parts of the Murray–Darling Basin are in drought it affects the whole river system, including plants and animals, the communities of the Basin, and farming and food production.

The Murray–Darling Basin Agreement is a long-standing arrangement that aims to share water in the southern Basin. It outlines the rules for the way the River Murray is managed and operated.

The Murray–Darling Basin Authority met on 28 and 29 July 2021. All members were present, and the meeting was chaired by Sir Angus Houston.

Over recent years there have been significant changes on the River Murray, including expansion of permanent horticulture, recovery of water for the environment, increased trade and reduced channel capacity through the Barmah–Millewa forest. These changes have resulted in concerns that the river system will not be able to deliver water allocation to users when they need it.

A positive opening balance means water will be available to be traded in the River Murray from above the Barmah Choke to below the choke on 1 July 2021.

State governments are responsible for allocating water. Each state approaches allocations differently, and multiple factors can affect allocations.