NSW may not be able to prosecute large-scale water theft due to doubts about licences for billions of litres

An aerial view of a portion in New South Wales of the Murray–Darling basin. The agency that manages floodplain harvesting has said a recent case creates uncertainties in enforcement. Photograph: Photography by Mangiwau/Getty Images

The New South Wales water regulator has cast doubt over its ability to prosecute potential water theft due to uncertainty about the validity of licences governing billions of litres of water entitlements in the state’s north.

It follows a successful legal challenge brought by a group of irrigators in the state’s north-west which found 11 floodplain harvesting licences issued by the former Coalition government were invalid.