We have most our rain around the coast. Our main dam here in Sydney is 60% full now, it went down to near 30% full. The capital city, Canberra has nearly run out of water.
South east Queensland run very dry some time back, but they have had floods and rain lately... The outback have to look after water for home use big time! I have lived out west on horse/ cattle farm where you had to shower using green dam water. It takes some getting use to!! NOT that hotels or where there's any accommodation is like that!!
The Murray river which flows from up north Queensland through New South wales, South Australia to Victoria has almost run dry... Too much irrigation ? Water taken out along the way...
http://www.theage.com.au/environment/when-the-river-runs-dry-20080620-2u8y.html
In Sydney they are building a sea water refinery and is going to cost heaps to build and run!! Without hydro electric power, geothermal or nuclear power, we have up to now used coal to make electricity..
Which is a big contributor to green house gas / carbon..
I think a lot could be done to produce solar power as there a lot of vacant national park land here.
Drought is part of Australia, "it's a sun burnt country" as said by an old poet..
Trouble is ALL politicians and Governments just want to "stay in power" and don't seem to have any long term projects these days..