Causes of Water Scarcity
Water scarcity in Australia is caused by various factors, but the main one is the dry and variable climate. This is an issue because a lot of the water is absorbed through evaporation leaving less water available for human consumption.
Other contributing factors include
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Increased demand/population growth
As the population grows, more people rely on and need safe drinking water. The increase in population in cities like Sydney and Melbourne in particular means more water is needed to support population growth. There is also increased used of water by mining and businesses and of course by farming.
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Deforestation and removal of natural vegetation/land cleaning
Deforestation affects many aspects of the water cycle. When trees are cut down there is less moisture in the air. Deforestation also affects waterfall patterns and can also cause erosion and flooding. Deforestation is happening in Queensland and New South Wales and there is even farming and logging happening in Western Australia and Victoria.
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Climate change
Increases times of droughts and changes weather and rainfall patterns. Hotter climate means evaporation which is already a problem in Australia is even a bigger problem effecting our access to water.
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Irregular rainfall
Makes water supplies harder to manage and as Australia is one of the driest counties in the world waterfall is a major factor. Long periods of drought make it hard to manage water in dams and ground water.

The above diagram shows the effects of deforestation on the environment. Trees pull water from the ground and release water vapor through their leaves, generating moisture in the atmosphere.
Other causes also include:
Aging Infrastructure - Old pipes, dams and distribution systems can waste water before it even gets to where it’s needed.
Farming - Farming is one of the largest users of water in Australia which puts more stress on water supply and reducing the amount of water the rest of the population has access to.
Pollution - Farmers use pesticides and fertilisers as well as industrial waste and sewage can pollute our water ways reducing the amount of clean water.