There is scant information on the economic, social and environmental values of consequences of policies on diversion rates and various scenarios. For example scientific advice to the Living Murray initiative suggests that there is a good chance of achieving healthy river systems in the Murray Darling Basin if an average of 4000 GL is returned to environmental flows annually. But this would have major economic impacts. A phased approach to comprehensively study the value of irrigation to the Australian economy and the implications of various policy scenarios is required.