ABSTRACT: This paper discusses how to supply sufficient water to meet industrial water demand. Australia is not running out of water, but water is running out of Australia’s rivers. About 440km3/year of runoff is lost to the sea, and the total water usage is only about 5-6% of the water availability. Australia is one of the most resourceful countries in the world. All industrial water for the coastal areas can be supplied from coastal reservoirs, even the high-quality cooling water for steel making. To supply sufficient water to inland areas, the author has suggested that the Murray-Darling basin’s cotton farms should be relocated to downstream areas near its coastal reservoir, thus the agricultural water demand is fully met and also the environmental flow is increased significantly. Therefore, its existing dams can be used for mining industry. Water pipelines may be needed to pump water from these dams to the mining sites, trains can also transport water bags from ports to inland areas.