DRY conditions across the country, averaged across the year 2105-16, put a dampener on irrigation industries.
Overall, farms used 9,200 gigalitres, 238GL less than 2014-15 (a 3 per cent drop), the figures show in the in the Australian Bureau of Statistics Ag Census 2015-16 .
Irrigation use also fell 3pc, to 8381GL, while the number of irrigating businesses fell 18pc, (22,700 businesses).
Demonstrating the widespread need for water, the total area watered across Australia increased by 4pc, to 2,147.915 hectares.
NSW irrigators were particularly hard, with many holding back on a crop and selling water entitlement. The number of farm businesses reporting irrigation down 21pc, or 5300.
Victorian irrigators were similarly impacted, with 6000 fewer businesses and a 5pc decrease in the area under crop.
The average Australian irrigator used 107 megalitres in 2015-16, down 4ML or 3pc on the previous year.
ABS Director of Environment and Agriculture Statistics, Lauren Binns said farmers had adjusted to water availability and climatic conditions.
“This includes selling off allocations to recoup costs rather than cropping in a bad year, watering larger areas less, or changing crops planted,” Ms Binns said.
“Above average temperatures and dry conditions in southern Australia through 2015-16, along with record high prices for water, were critical factors in water use for Victoria and South Australia in particular.
Water sourced from irrigation channels and pipelines remained the major source of water, despite a 23pc drop in volume. This source delivered 3GL (34pc) of agricultural water.
The Murray Darling Basin accounted for 57pc of total irrigation water use, and irrigated 58pc of the nation's total area watered.