Water is essential for all forms of life- not just human, but for the survival of our natural ecosystems, communities and productive economies. Australia, as the driest inhabited continent on earth, is well accustomed to a climate of extremes best characterised by its history of alternating floods and droughts. Historically, Australia has experienced several prolonged droughts such as the Federation drought (1895-1903), the World War II drought (1939- 1945), and the Millennium drought (1997-2009). These have often been punctuated by extreme flood events which mark the other key challenge in managing water resources in Australia.