Most of Australia has no perennial streams hence groundwater has been important in meeting the demand for water. Groundwater was used chiefly for stock and domestic supplies until about 1950 when extraction was greatly increased for irrigation. Groundwater also has been significant in urban water supply in Australia. Usage of groundwater in Australia in 1971 was about 2.5 × 10⁹ cu m and, although some aquifer systems already are fully or overdeveloped, total groundwater resources are well in excess of usage.

Half of the groundwater used in Australia comes from aquifers in the larger sedimentary basins. Most of the remainder is drawn from alluvium and other unconsolidated aquifers. Fractured and weathered zones in hard rocks are important locally.

Groundwater in Australia is used by both the public and private sectors within the overall control, planning, and coordination of the Australian Water Resources Council. Several cases illustrate the interplay of hydrogeologic setting, economics, technologic change, and social attitudes in the pattern of groundwater use.

Few records are available on the use of groundwater prior to the discovery of the Great Artesian basin in 1878. Rapid exploration and development of groundwater with consequent declining yields and inefficient water use resulted in increased investigations.

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Groundwater in coastal sands and the alluvium of rivers was used during early settlement but the main growth in usage for irrigation has occurred in the last two decades. The Burdekin delta and the Hunter River Valley are examples. In the Murray-Darling River system interest in groundwater was intensified by waterlogging and soil salinization following intensive irrigation of the riverine plains. Water is supplied from the surface, although recent investigations have shown that many areas contain valuable groundwater resources. In the Perth basin, ground and surface water are being used for expanding urban and industrial developments. Groundwater sources now are incorporated into the existing system. Development of new mineral fields in northwest Australia has depended on availability of large quantities of water. Only groundwater has been able to provide the quantities needed.

To meet the increasing demands for water in Australia from new groundwater sources, the main requirement is for groundwater to be economically, socially, environmentally, and regionally managed.

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