Australia has experienced regional climate trends over recent decades with consequences for agriculture and water management. We investigate the statistical significance of these trends at annual and seasonal scales using the concept of stationarity. Using long-term high quality regional-scale observations of temperature, precipitation and pan evaporation (a measure of atmospheric evaporative demand), we find that despite highly significant increases in temperature that are nonstationary, few regions of Australia have experienced annual or seasonal changes in precipitation or pan evaporation that are outside the range of observed variability over the last century. Despite a common assumption of increasing water demand under a warming climate, atmospheric evaporative demand (as measured by pan evaporation) largely remains unchanged. This is because evaporative demand depends strongly on factors other than temperature. Similarly, seasonal and annual precipitation over the last century is found to be stationary in most (but not all) regions. These findings suggest that the Australian precipitation has largely remained within the bounds of observed variability to date and emphasises the need to better account for variability in water resource management.

We examine the relative impact of population increases and climate change in affecting future water demand for Sydney, Australia. We use the Weather and Research Forecasting model, a water demand model and a stochastic weather generator to downscale four different global climate models for the present (1990–2010), near (2020–2040) and far (2060–2080) future. Projected climate change would increase median metered consumption, at 2019/2020 population levels, from around 484 GL under present climate to 484–494 GL under near future climate and 495–505 GL under far future climate. Population changes from 2014/2015 to 2024/2025 have a far larger impact, increasing median metered consumption from 457 to 508 GL under present climate, 463 to 515 GL under near future climate and from 471 to 524 GL under far future climate. The projected changes in consumption are sensitive to the climate model used. Overall, while population growth is a far stronger driver of increasing water demand than climate change for Sydney, both act in parallel to reduce the time it would take for all storage to be exhausted. Failing to account for climate change would therefore lead to overconfidence in the reliability of Sydney's water supply.

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