They are a water source for fire-fighting, a habitat for biodiversity and can increase farm productivity and property values.

Like all farm assets they need to be designed and managed appropriately to ensure they meet the needs of the enterprise and do not impact negatively on the environment.

Most problems with farm dams are the result of excess nutrient and sediment flow into the dam which may render the water unfit for stock use and provide a source of pollution into creeks and streams.

The key management strategies to deal with this issue are groundcover management and stock access.

By maintaining ground cover above 80 per cent in the areas above the dam much of the nutrient and sediment flow into the dam.

If possible, establish a buffer area leading into each dam where ground cover is maintained.

Dams with large catchments and on and steeper slopes will need bigger buffers areas.

The same principles apply to dam spillways to prevent passing problems on downstream.

Limiting stock access to dams is not always easy but can help prevent water edge erosion.

Planting trees adjacent to dams can shade the water thereby reducing evaporation losses and help keep water cool.

Keep trees away from the dam wall, spillway and inflow area and be careful if planting trees uphill of a dam where stock camps may develop.

These camps can be a major source of effluent inflow during storm events.

Dams can not only be a valuable resource for livestock but also increase on-farm bidiversity.

Irregular dam edges and wetland plants can help reduce edge erosion and provide habitat for a wide range of native species.

More information on dams and water sources can be found on the NSW DPI web site at www.dpi.nsw.gov.au/agriculture/re sources/water/storage and the Sydney Catchment Authority site, www.sca.nsw.gov.au/publications/p ublications/farm-dam-handbook.