Most South East Queensland streams and rivers suffer from poor riparian health and, as a result, their banks are the major source of rural diffuse sediment and nutrient pollution.  Waterways are in an urgent need for restoration at a time when traditional Government funding is limited.  Innovative approaches are needed to fund and deliver catchment restoration. 

Over the past 10 years, major investment has been made to reduce point source pollution in the region, with state and local governments spending over $700 million upgrading sewage treatment plants.  Upgrades to further reduce loads are becoming increasingly expensive and the option to reduce large rural diffuse loads is being considered as a more cost effective option to improve water quality.  At the same time, it is predicted that there will be significant population growth in South East Queensland over the next 10 years and hence point source pollution loads will increase.

The Department of Environment and Heritage Protection is currently developing a policy for water utilities to use nutrient offsets, either from diffuse or point sources, as a flexible mechanism for meeting load limits.

This paper accompanies two other papers; Part (a) the determination of soil loss avoided through riparian restoration and Part (b) the estimation of nutrient loss avoided in river restoration,  

to provide the policy context for applying nutrient offsets to South East Queensland catchments and examines the lessons, opportunities and barriers for future use.

This paper demonstrates the policy settings that are needed to ensure any offsets result in an improved water quality outcome.  A review of the pilot study being undertaken in the Logan River catchment with Queensland Urban Utilities provides a reflection on opportunities to expand the scheme and the knowledge and environmental constraints which need to be overcome.