Australia to spend $2.9 billion to buy water from farmers

Australia's government promised Tuesday to spend about $2.9 billion to buy river water from farmers in a bid to address the country's worst drought in a century.

The spending is the most expensive component of a $12.1 billion, 10-year plan to reduce water waste and improve water efficiency on Australian farms and in cities.

"Climate change means most Australian cities and towns have less water and we can no longer rely on local rainfall to supply all our drinking water," Minister for Climate Change and Water Penny Wong said in a statement.

But a mayor in the farming district targeted by the water purchasing plan cautioned that the it would reduce Australia's agricultural exports at a time of global food shortages and inflation.